Fastly (NASDAQ:FSLY) Trading Down 5.4% – Here’s Why

Fastly, Inc. (NASDAQ:FSLY)’s share price dropped 5.4% during mid-day trading on Tuesday . The stock traded as low as $21.47 and last traded at $21.55. Approximately 1,220,293 shares changed hands during trading, a decline of 87% from the average daily volume of 9,441,716 shares. The stock had previously closed at $22.79.

Wall Street Analyst Weigh In

FSLY has been the topic of several recent research reports. Evercore reaffirmed an “outperform” rating on shares of Fastly in a report on Thursday, August 6th. KeyCorp raised their target price on Fastly from $27.00 to $30.00 and gave the stock an “overweight” rating in a report on Thursday, August 6th. Royal Bank Of Canada increased their price target on shares of Fastly from $22.00 to $28.00 and gave the stock a “sector perform” rating in a report on Thursday, August 6th. Citigroup increased their target price on shares of Fastly from $13.00 to $25.00 and gave the stock a “neutral” rating in a research note on Thursday, May 7th. Finally, Weiss Ratings restated a “sell (d-)” rating on shares of Fastly in a research report on Friday, August 7th. One investment analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating, six have issued a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, the company currently has a consensus rating of “Hold” and a consensus target price of $25.33.

Fastly Trading Down 7.0%

The company’s fifty day simple moving average is $21.89 and its 200-day simple moving average is $21.96. The firm has a market capitalization of $3.38 billion, a PE ratio of -40.00 and a beta of 0.34. The company has a debt-to-equity ratio of 0.33, a current ratio of 3.36 and a quick ratio of 3.36.

Fastly (NASDAQ:FSLY) last released its earnings results on Wednesday, August 5th. The company reported $0.15 EPS for the quarter, topping analysts’ consensus estimates of $0.07 by $0.08. The business had revenue of $183.32 million during the quarter, compared to analysts’ expectations of $173.94 million. Fastly had a negative net margin of 11.80% and a negative return on equity of 6.31%. Fastly has set its FY 2026 guidance at 0.500-0.540 EPS and its Q3 2026 guidance at 0.110-0.130 EPS. As a group, sell-side analysts expect that Fastly, Inc. will post -0.29 earnings per share for the current fiscal year.

Insider Transactions at Fastly

In other news, CTO Artur Bergman sold 32,387 shares of Fastly stock in a transaction that occurred on Tuesday, August 18th. The stock was sold at an average price of $28.60, for a total value of $926,268.20. Following the sale, the chief technology officer directly owned 2,005,191 shares of the company’s stock, valued at $57,348,462.60. The trade was a 1.59% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Charles Lacey Compton III sold 34,552 shares of the business’s stock in a transaction that occurred on Tuesday, August 18th. The stock was sold at an average price of $28.60, for a total value of $988,187.20. Following the sale, the chief executive officer owned 996,040 shares of the company’s stock, valued at $28,486,744. The trade was a 3.35% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders have sold 441,087 shares of company stock worth $11,164,598. 4.20% of the stock is owned by insiders.

Hedge Funds Weigh In On Fastly

Several hedge funds and other institutional investors have recently modified their holdings of FSLY. EverSource Wealth Advisors LLC boosted its position in Fastly by 39.8% during the first quarter. EverSource Wealth Advisors LLC now owns 2,204 shares of the company’s stock worth $64,000 after acquiring an additional 627 shares during the last quarter. PNC Financial Services Group Inc. boosted its holdings in shares of Fastly by 84.6% during the 1st quarter. PNC Financial Services Group Inc. now owns 1,381 shares of the company’s stock worth $40,000 after purchasing an additional 633 shares during the last quarter. Kestra Advisory Services LLC grew its position in shares of Fastly by 8.4% in the fourth quarter. Kestra Advisory Services LLC now owns 11,970 shares of the company’s stock valued at $122,000 after purchasing an additional 930 shares in the last quarter. Parallax Volatility Advisers L.P. increased its holdings in shares of Fastly by 13.8% in the third quarter. Parallax Volatility Advisers L.P. now owns 12,095 shares of the company’s stock valued at $103,000 after purchasing an additional 1,465 shares during the last quarter. Finally, Sound Income Strategies LLC purchased a new position in Fastly during the first quarter worth approximately $44,000. 79.71% of the stock is owned by hedge funds and other institutional investors.

About Fastly

Fastly, Inc operates an edge cloud platform designed to accelerate, secure and enable modern digital experiences. The company offers a suite of services including a content delivery network (CDN), edge compute, load balancing, web application firewall (WAF) and DDoS protection. Fastly’s real-time architecture allows customers to seamlessly deploy software logic at the network edge, reducing latency by bringing applications and content closer to end users.

Founded in 2011 by Artur Bergman, Fastly has evolved from a pure-play CDN provider into a comprehensive edge cloud platform.