Citigroup Issues Pessimistic Forecast for Fastly (NASDAQ:FSLY) Stock Price

Fastly (NASDAQ:FSLY) had its target price cut by stock analysts at Citigroup from $27.00 to $25.00 in a research report issued on Friday, Benzinga reports. The brokerage currently has a “neutral” rating on the stock. Citigroup‘s target price indicates a potential upside of 57.73% from the stock’s current price.

A number of other research firms have also recently weighed in on FSLY. Evercore restated an “outperform” rating on shares of Fastly in a research note on Wednesday, September 23rd. Piper Sandler reaffirmed a “neutral” rating and set a $24.00 target price (down from $28.00) on shares of Fastly in a report on Thursday. Freedom Capital raised shares of Fastly to a “strong-buy” rating in a report on Thursday, July 16th. KeyCorp restated an “overweight” rating and set a $30.00 price objective on shares of Fastly in a research report on Friday, September 18th. Finally, Weiss Ratings restated a “sell (d-)” rating on shares of Fastly in a report on Wednesday. One investment analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating, five have issued a Hold rating and two have given a Sell rating to the company. According to MarketBeat.com, the stock has an average rating of “Hold” and a consensus price target of $26.17.

Fastly Stock Performance

NASDAQ FSLY traded up $0.47 during trading on Friday, reaching $15.85. 10,349,943 shares of the company’s stock were exchanged, compared to its average volume of 8,927,125. The business has a 50 day moving average price of $24.14 and a 200-day moving average price of $21.49. The stock has a market capitalization of $2.52 billion, a P/E ratio of -39.62 and a beta of 0.22. 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 has a fifty-two week low of $7.87 and a fifty-two week high of $34.82.

Fastly (NASDAQ:FSLY) last released its quarterly earnings data on Wednesday, November 4th. The company reported $0.17 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.12 by $0.05. Fastly had a negative return on equity of 4.57% and a negative net margin of 8.74%. The company had revenue of $190.19 million during the quarter, compared to analysts’ expectations of $187.82 million. Sell-side analysts forecast that Fastly will post -0.29 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other Fastly news, insider Jeffrey Ford sold 45,832 shares of the business’s stock in a transaction dated Thursday, September 17th. The shares were sold at an average price of $24.65, for a total value of $1,129,758.80. Following the completion of the sale, the insider owned 249,861 shares of the company’s stock, valued at $6,159,073.65. The trade was a 15.50% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Richard Wong sold 148,015 shares of the stock in a transaction that occurred on Tuesday, August 18th. The stock was sold at an average price of $28.61, for a total transaction of $4,234,709.15. Following the transaction, the chief financial officer owned 1,091,286 shares in the company, valued at approximately $31,221,692.46. The trade was a 11.94% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 1,323,893 shares of company stock valued at $35,452,889 in the last three months. Insiders own 4.20% of the company’s stock.

Institutional Investors Weigh In On Fastly

A number of hedge funds and other institutional investors have recently made changes to their positions in the business. First Trust Advisors LP boosted its stake in shares of Fastly by 100.5% in the first quarter. First Trust Advisors LP now owns 7,031,952 shares of the company’s stock valued at $204,349,000 after buying an additional 3,524,763 shares during the period. Dimensional Fund Advisors LP increased its stake in Fastly by 0.4% during the 1st quarter. Dimensional Fund Advisors LP now owns 2,741,549 shares of the company’s stock worth $79,620,000 after acquiring an additional 11,022 shares during the period. Bank of America Corp DE increased its stake in Fastly by 120.0% during the 1st quarter. Bank of America Corp DE now owns 1,269,369 shares of the company’s stock worth $36,888,000 after acquiring an additional 692,459 shares during the period. Wellington Management Group LLP bought a new position in Fastly during the 2nd quarter worth $8,696,000. Finally, Swiss National Bank raised its holdings in Fastly by 1.8% in the 1st quarter. Swiss National Bank now owns 280,900 shares of the company’s stock valued at $8,163,000 after acquiring an additional 4,900 shares in the last quarter. 79.71% of the stock is currently owned by institutional investors and hedge funds.

Key Headlines Impacting Fastly

Here are the key news stories impacting Fastly this week:

• Positive Sentiment: Fastly beat third-quarter estimates, with revenue up 20.2% year over year to $190.2 million and adjusted earnings of $0.17 per share versus $0.12 expected. The company raised its 2026 outlook, citing deeper platform adoption, security demand, AI-related workloads and a Comcast partnership. Earnings Beat Might Change The Case For Investing In Fastly
• Positive Sentiment: Management forecast full-year revenue of $744 million–$748 million and free cash flow of $50 million–$60 million. Security sales rose 32%, and the company highlighted expanding use of multiple products by customers—supporting its strategy to grow beyond content delivery. FSLY Q3 Earnings Call Highlights Growth & Higher Outlook
• Neutral Sentiment: Piper Sandler reaffirmed its Neutral rating but lowered its price target to $24 from $28; RBC maintained Sector Perform while cutting its target to $19 from $25. The revised targets remain above the share price cited in the reports, but the cuts indicate less optimistic analyst expectations. RBC Cuts Price Target on Fastly
• Negative Sentiment: Despite the earnings beat, the stock sold off after results. Investors may be focused on expected fourth-quarter growth deceleration and an analyst’s concerns about slowing performance in some business segments. Fastly Plunges on Q3 Results as Analyst Highlights Segment Deceleration
• Negative Sentiment: Fastly also announced that Go-To-Market President Scott Lovett plans to retire in 2027 and that it will search for a Chief Revenue Officer, adding leadership-transition uncertainty. Fastly Announces Leadership Transition in Go To Market

About Fastly

Fastly, Inc is a technology company that provides an edge cloud platform designed to help businesses deliver, secure, and optimize digital applications and content. Its platform processes data and applications closer to end users, supporting faster performance, improved reliability, and greater control over internet-based services.

Fastly’s products and services include content delivery, application programming interface (API) acceleration, edge computing, application and API security, bot management, distributed denial-of-service protection, and observability tools.