Fastly (NASDAQ:FSLY) Stock Falls 12.1% – Here’s What Happened

Fastly, Inc. (NASDAQ:FSLY) shares dropped 12.1% on Friday. The company traded as low as $22.59 and last traded at $22.5280. Approximately 1,844,439 shares traded hands during trading, a decline of 79% from the average session volume of 8,891,315 shares. The stock had previously closed at $25.64.

Wall Street Analyst Weigh In

A number of equities research analysts have recently issued reports on FSLY shares. DA Davidson boosted their price target on shares of Fastly from $21.00 to $23.00 and gave the company a “neutral” rating in a research note on Wednesday, September 23rd. Freedom Capital raised shares of Fastly to a “strong-buy” rating in a research report on Thursday, July 16th. Raymond James Financial reiterated an “outperform” rating on shares of Fastly in a report on Wednesday, September 23rd. Canaccord Genuity Group began coverage on Fastly in a research report on Friday, July 17th. They issued a “buy” rating and a $27.00 target price on the stock. Finally, Bank of America upped their price target on Fastly from $20.00 to $22.00 and gave the stock an “underperform” rating in a research note on Wednesday, September 23rd. One research analyst has rated the stock with a Strong Buy rating, seven have issued a Buy rating, five have issued a Hold rating and two have issued a Sell rating to the company. Based on data from MarketBeat, Fastly currently has an average rating of “Hold” and an average target price of $27.42.

Fastly Trading Down 11.9%

The company’s fifty day moving average is $24.46 and its two-hundred day moving average is $21.21. The company has a quick ratio of 3.36, a current ratio of 3.36 and a debt-to-equity ratio of 0.33. The stock has a market cap of $3.60 billion, a price-to-earnings ratio of -42.62 and a beta of 0.31.

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

Insider Transactions at Fastly

In other Fastly news, insider Jeffrey Ford sold 45,832 shares of the firm’s stock in a transaction on Thursday, September 17th. The stock was sold at an average price of $24.65, for a total value of $1,129,758.80. Following the sale, the insider directly owned 249,861 shares in the company, valued at $6,159,073.65. This trade represents a 15.50% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Charles Compton, III sold 55,579 shares of the firm’s stock in a transaction on Tuesday, September 1st. The shares were sold at an average price of $21.39, for a total value of $1,188,834.81. Following the completion of the sale, the chief executive officer owned 914,235 shares in the company, valued at approximately $19,555,486.65. This represents a 5.73% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 1,349,841 shares of company stock valued at $36,078,321 over the last ninety days. Company insiders own 4.20% of the company’s stock.

Hedge Funds Weigh In On Fastly

A number of institutional investors and hedge funds have recently added to or reduced their stakes in FSLY. GAMMA Investing LLC increased its stake in Fastly by 38.4% in the third quarter. GAMMA Investing LLC now owns 1,510 shares of the company’s stock valued at $39,000 after purchasing an additional 419 shares during the last quarter. EverSource Wealth Advisors LLC raised its holdings 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 purchasing an additional 627 shares in the last quarter. PNC Financial Services Group Inc. raised its holdings in Fastly by 84.6% during the first 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 in the last quarter. Cim Investment Management Inc. raised its holdings in Fastly by 7.4% during the second quarter. Cim Investment Management Inc. now owns 10,816 shares of the company’s stock worth $199,000 after purchasing an additional 747 shares in the last quarter. Finally, Signaturefd LLC lifted its position in shares of Fastly by 98,700.0% during the 3rd quarter. Signaturefd LLC now owns 988 shares of the company’s stock worth $25,000 after buying an additional 987 shares during the last quarter. 79.71% of the stock is owned by institutional investors and hedge funds.

Fastly Company Profile

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.