Fastly (NYSE:FSLY) Shares Gap Down After Insider Selling

Fastly, Inc. (NYSE:FSLY)’s share price gapped down prior to trading on Thursday following insider selling activity. The stock had previously closed at $26.03, but opened at $22.73. Fastly shares last traded at $23.5980, with a volume of 1,816,794 shares.

Specifically, CEO Charles Lacey Compton III sold 14,868 shares of the firm’s stock in a transaction that occurred on Tuesday, August 4th. The shares were sold at an average price of $25.00, for a total transaction of $371,700.00. Following the completion of the transaction, the chief executive officer directly owned 1,030,592 shares of the company’s stock, valued at approximately $25,764,800. This trade represents a 1.42% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Wall Street Analysts Forecast Growth

Several analysts have recently commented on FSLY shares. KeyCorp upped their price objective on shares of Fastly from $27.00 to $30.00 and gave the company an “overweight” rating in a report on Thursday. Raymond James Financial restated an “outperform” rating and set a $29.00 target price on shares of Fastly in a research report on Thursday. Craig Hallum lowered shares of Fastly from a “buy” rating to a “hold” rating and set a $24.00 price target on the stock. in a report on Tuesday, April 14th. Citigroup increased their price target on Fastly from $13.00 to $25.00 and gave the stock a “neutral” rating in a research report on Thursday, May 7th. Finally, Evercore reiterated an “outperform” rating on shares of Fastly in a research note on Thursday. One investment analyst has rated the stock with a Strong Buy rating, five have given a Buy rating, six have given a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, the company has an average rating of “Hold” and an average price target of $25.33.

Key Fastly News

Here are the key news stories impacting Fastly this week:

• Positive Sentiment: Fastly reported record second-quarter revenue of $183.3 million, up 23% year over year. Non-GAAP earnings of $0.15 per share more than doubled the $0.07 consensus estimate, while security revenue surged 43% on demand related to AI traffic protection. Gross margin also reached a record 65.8%. Fastly Q2 Earnings Beat as Security Growth Spurs 2026 Outlook Hike
• Positive Sentiment: The edge-cloud company raised its 2026 outlook, including adjusted earnings guidance of $0.50 to $0.54 per share. Third-quarter revenue guidance of $184 million to $190 million and adjusted EPS guidance of $0.11 to $0.13 also exceeded expectations, supporting the view that Fastly’s improved profitability and security growth are continuing. Fastly Announces Second Quarter 2026 Financial Results
• Positive Sentiment: Analysts responded by raising price targets: KeyBanc lifted its target from $27 to $30 while maintaining an overweight rating, and RBC increased its target from $22 to $28 with a sector-perform rating. The revisions reinforce expectations for further execution in security and AI-related traffic services.
• Neutral Sentiment: Fastly’s results highlighted strong security and AI-driven demand, but customer concentration remains a risk. A small number of large customers could make revenue growth more volatile if spending patterns change.
• Negative Sentiment: Despite the earnings beat and higher outlook, the stock initially declined after the report, suggesting investors may have expected an even stronger result. Following a substantial prior-year rally, valuation appears demanding and leaves less room for execution or guidance disappointments. Fastly Stock Looks Overvalued Despite a Strong Return
• Negative Sentiment: CEO Charles Lacey Compton III sold 14,868 shares for approximately $371,700, reducing his direct ownership by 1.42%. The sale was made under a pre-arranged Rule 10b5-1 plan, which limits its significance, but it may still create modest short-term selling pressure. Fastly CEO Insider Sale

Fastly Stock Up 1.2%

The company has a market cap of $3.59 billion, a PE ratio of -23.92 and a beta of 0.34. The business has a 50-day simple moving average of $19.64 and a 200-day simple moving average of $20.01. The company has a quick ratio of 1.46, a current ratio of 1.46 and a debt-to-equity ratio of 0.16.

Institutional Inflows and Outflows

Several large investors have recently made changes to their positions in the business. Amundi grew its stake in Fastly by 11.3% in the 1st quarter. Amundi now owns 46,624 shares of the company’s stock valued at $277,000 after acquiring an additional 4,724 shares during the period. AQR Capital Management LLC acquired a new position in Fastly during the first quarter worth $837,000. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its holdings in Fastly by 1.4% during the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 466,042 shares of the company’s stock valued at $2,950,000 after purchasing an additional 6,247 shares in the last quarter. Jones Financial Companies Lllp lifted its holdings in Fastly by 963.6% during the first quarter. Jones Financial Companies Lllp now owns 60,838 shares of the company’s stock valued at $385,000 after purchasing an additional 55,118 shares in the last quarter. Finally, Goldman Sachs Group Inc. grew its position in shares of Fastly by 7.8% in the first quarter. Goldman Sachs Group Inc. now owns 2,302,164 shares of the company’s stock valued at $14,573,000 after purchasing an additional 165,937 shares during the period. 79.71% of the stock is owned by institutional investors and hedge funds.

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.