Fastly (NYSE:FSLY) Shares Gap Down – What’s Next?

Fastly, Inc. (NYSE:FSLY) shares gapped down before the market opened on Thursday . The stock had previously closed at $11.74, but opened at $11.13. Fastly shares last traded at $11.1160, with a volume of 742,738 shares trading hands.

Wall Street Analyst Weigh In

A number of equities research analysts have recently weighed in on FSLY shares. Oppenheimer started coverage on shares of Fastly in a research note on Monday, November 17th. They set a “market perform” rating on the stock. DA Davidson upped their target price on Fastly from $9.50 to $11.50 and gave the stock a “neutral” rating in a report on Tuesday, November 11th. Weiss Ratings restated a “sell (d-)” rating on shares of Fastly in a research note on Wednesday, October 8th. Citigroup upped their price target on Fastly from $8.00 to $12.00 and gave the stock a “neutral” rating in a research note on Tuesday, November 11th. Finally, Royal Bank Of Canada raised their price objective on Fastly from $7.00 to $9.00 and gave the company a “sector perform” rating in a research report on Thursday, November 6th. One equities research analyst has rated the stock with a Buy rating, seven have issued a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, Fastly has a consensus rating of “Hold” and a consensus price target of $10.08.

Fastly Price Performance

The company has a debt-to-equity ratio of 0.16, a current ratio of 1.46 and a quick ratio of 1.46. The company has a market capitalization of $1.68 billion, a P/E ratio of -11.69 and a beta of 0.97. The firm’s 50-day moving average is $9.57 and its 200-day moving average is $8.11.

Fastly (NYSE:FSLY) last released its earnings results on Wednesday, November 5th. The company reported $0.07 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.01 by $0.06. The company had revenue of $158.22 million during the quarter, compared to analyst estimates of $151.04 million. Fastly had a negative net margin of 23.49% and a negative return on equity of 12.02%. The firm’s quarterly revenue was up 15.3% compared to the same quarter last year. During the same period in the prior year, the firm posted $0.02 EPS. Fastly has set its Q4 2025 guidance at 0.040-0.080 EPS and its FY 2025 guidance at 0.030-0.070 EPS. Analysts predict that Fastly, Inc. will post -0.78 EPS for the current fiscal year.

Insider Buying and Selling

In other Fastly news, CTO Artur Bergman sold 220,000 shares of the business’s stock in a transaction on Thursday, November 6th. The shares were sold at an average price of $10.67, for a total transaction of $2,347,400.00. Following the transaction, the chief technology officer owned 3,121,276 shares in the company, valued at $33,304,014.92. The trade was a 6.58% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, insider Scott R. Lovett sold 178,931 shares of the stock in a transaction that occurred on Monday, September 15th. The stock was sold at an average price of $8.28, for a total value of $1,481,548.68. Following the completion of the sale, the insider owned 1,165,185 shares in the company, valued at approximately $9,647,731.80. The trade was a 13.31% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 922,652 shares of company stock valued at $8,905,651 over the last quarter. Corporate insiders own 6.70% of the company’s stock.

Institutional Investors Weigh In On Fastly

Several institutional investors have recently bought and sold shares of the company. Vanguard Group Inc. raised its position in shares of Fastly by 3.4% in the 3rd quarter. Vanguard Group Inc. now owns 16,666,672 shares of the company’s stock valued at $142,500,000 after purchasing an additional 554,909 shares during the last quarter. Legal & General Group Plc lifted its stake in shares of Fastly by 3.4% during the second quarter. Legal & General Group Plc now owns 8,943,224 shares of the company’s stock worth $63,139,000 after buying an additional 291,617 shares during the period. Penserra Capital Management LLC purchased a new stake in shares of Fastly during the third quarter valued at $61,864,000. Dimensional Fund Advisors LP grew its holdings in shares of Fastly by 2.9% during the third quarter. Dimensional Fund Advisors LP now owns 4,137,808 shares of the company’s stock valued at $35,380,000 after buying an additional 117,213 shares during the last quarter. Finally, Marshall Wace LLP increased its position in shares of Fastly by 115.2% in the 2nd quarter. Marshall Wace LLP now owns 3,385,167 shares of the company’s stock valued at $23,899,000 after acquiring an additional 1,811,935 shares during the period. 79.71% of the stock is currently owned by institutional investors and hedge funds.

About Fastly

Fastly, Inc operates an edge cloud platform for processing, serving, and securing its customer's applications in the United States, the Asia Pacific, Europe, and internationally. The edge cloud is a category of Infrastructure as a Service that enables developers to build, secure, and deliver digital experiences at the edge of the internet.