Fastly (NYSE:FSLY) Trading Down 5% – What’s Next?

Fastly, Inc. (NYSE:FSLY) shares dropped 5% during mid-day trading on Monday . The stock traded as low as $23.36 and last traded at $23.3410. Approximately 5,288,946 shares were traded during mid-day trading, a decline of 53% from the average daily volume of 11,237,254 shares. The stock had previously closed at $24.58.

Analyst Upgrades and Downgrades

A number of brokerages recently weighed in on FSLY. KeyCorp upgraded shares of Fastly from a “sector weight” rating to an “overweight” rating and set a $14.00 target price for the company in a report on Monday, December 15th. Oppenheimer initiated coverage on Fastly in a research note on Monday, November 17th. They set a “market perform” rating for the company. Royal Bank Of Canada lifted their target price on Fastly from $12.00 to $20.00 and gave the stock a “sector perform” rating in a report on Monday, March 2nd. William Blair raised Fastly from a “market perform” rating to an “outperform” rating in a research report on Thursday, February 12th. Finally, DA Davidson set a $13.00 target price on Fastly in a report on Thursday, February 12th. Three research analysts have rated the stock with a Buy rating, six have given a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat.com, the company presently has a consensus rating of “Hold” and an average price target of $13.14.

Fastly Stock Performance

The firm’s 50 day simple moving average is $13.91 and its 200-day simple moving average is $11.01. The company has a market capitalization of $3.53 billion, a price-to-earnings ratio of -24.18 and a beta of 0.88. The company has a debt-to-equity ratio of 0.16, a quick ratio of 1.46 and a current ratio of 1.46.

Insider Activity at Fastly

In related news, CTO Artur Bergman sold 275,234 shares of the stock in a transaction dated Monday, March 2nd. The stock was sold at an average price of $20.56, for a total value of $5,658,811.04. Following the completion of the sale, the chief technology officer directly owned 1,909,901 shares of the company’s stock, valued at approximately $39,267,564.56. This represents a 12.60% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, insider Scott R. Lovett sold 73,715 shares of the firm’s stock in a transaction dated Wednesday, March 4th. The stock was sold at an average price of $21.06, for a total value of $1,552,437.90. Following the sale, the insider owned 1,580,513 shares of the company’s stock, valued at $33,285,603.78. The trade was a 4.46% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last ninety days, insiders have sold 1,618,702 shares of company stock valued at $29,076,652. Company insiders own 6.70% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Divisadero Street Capital Management LP acquired a new stake in shares of Fastly during the 3rd quarter valued at $21,174,000. Vanguard Group Inc. increased its stake in shares of Fastly by 3.4% in the third quarter. Vanguard Group Inc. now owns 16,666,672 shares of the company’s stock worth $142,500,000 after acquiring an additional 554,909 shares during the last quarter. Los Angeles Capital Management LLC purchased a new stake in shares of Fastly during the second quarter worth $171,000. Knights of Columbus Asset Advisors LLC purchased a new stake in shares of Fastly during the third quarter worth $1,002,000. Finally, Picton Mahoney Asset Management acquired a new stake in Fastly during the third quarter valued at $781,000. 79.71% of the stock is owned by hedge funds and other institutional investors.

Fastly Company Profile

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.