Fastly (NASDAQ:FSLY) Trading Down 6.9% – Here’s Why

Fastly, Inc. (NASDAQ:FSLY)’s share price traded down 6.9% during mid-day trading on Wednesday . The stock traded as low as $25.22 and last traded at $24.7550. 605,816 shares changed hands during trading, a decline of 94% from the average session volume of 9,724,135 shares. The stock had previously closed at $26.59.

Key Stories Impacting Fastly

Here are the key news stories impacting Fastly this week:

• Positive Sentiment: Fastly is highlighted as one of three mid-cap stocks benefiting from strong AI and cloud-computing momentum. The report points to expanding cloud demand, AI adoption and improving earnings estimates as potential long-term catalysts for FSLY. Buy 3 High-Flying Mid-Cap Stocks on Solid AI Cloud Computing Momentum
• Neutral Sentiment: Fastly’s CTO Artur Bergman sold 64,074 shares for approximately $1.71 million across August 18–19, while retaining nearly 1.97 million shares. Both transactions were conducted under a pre-arranged Rule 10b5-1 trading plan, which may reduce their significance as a discretionary signal. CTO SEC Form 4 Filing
• Neutral Sentiment: CEO Charles Lacey Compton III sold 45,750 shares for roughly $1.26 million over the same two days, leaving him with nearly 985,000 shares. The sales also followed a pre-arranged Rule 10b5-1 plan, limiting the extent to which investors should interpret them as a change in management’s outlook. CEO SEC Form 4 Filing
• Negative Sentiment: CFO Richard Wong sold 148,015 shares for approximately $4.23 million, reducing his direct ownership by nearly 12%. Another insider, Scott R. Lovett, sold 14,936 shares for about $427,000. The combined sales—along with those by the CEO and CTO—total approximately $7.84 million and could weigh on sentiment because several senior executives sold shares within a short period. CFO SEC Form 4 Filing Insider SEC Form 4 Filing
• Negative Sentiment: A valuation-focused analysis said Fastly’s shares had fallen sharply and that GF Value still viewed the stock as overvalued. That assessment may reinforce selling pressure, particularly after the stock’s substantial rise from its 52-week low. Fastly Shares Fall; GF Value Says Still Overvalued

Analyst Upgrades and Downgrades

FSLY has been the subject of a number of analyst reports. Weiss Ratings reissued a “sell (d-)” rating on shares of Fastly in a research report on Friday, August 7th. Piper Sandler raised their target price on shares of Fastly from $27.00 to $28.00 and gave the stock a “neutral” rating in a research report on Thursday, August 6th. Canaccord Genuity Group assumed coverage on shares of Fastly in a research note on Friday, July 17th. They issued a “buy” rating and a $27.00 target price for the company. Citigroup boosted their price target on Fastly from $13.00 to $25.00 and gave the company a “neutral” rating in a report on Thursday, May 7th. Finally, KeyCorp increased their price target on Fastly from $27.00 to $30.00 and gave the stock an “overweight” rating in a research note on Thursday, August 6th. One analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating, six have issued a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, Fastly presently has an average rating of “Hold” and a consensus price target of $25.33.

Fastly Stock Performance

The stock’s fifty day simple moving average is $21.09 and its two-hundred day simple moving average is $21.23. The company has a market cap of $3.62 billion, a price-to-earnings ratio of -42.85 and a beta of 0.34. The company has a debt-to-equity ratio of 0.33, a quick ratio of 3.36 and a current ratio of 3.36.

Fastly (NASDAQ:FSLY) last issued its earnings results on Wednesday, August 5th. The company reported $0.15 earnings per share for the quarter, topping the consensus estimate of $0.07 by $0.08. Fastly had a negative return on equity of 6.31% and a negative net margin of 11.80%.The business had revenue of $183.32 million for the quarter, compared to analyst estimates 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. Equities research analysts anticipate that Fastly, Inc. will post -0.29 EPS for the current year.

Insider Transactions at Fastly

In other news, CTO Artur Bergman sold 32,387 shares of Fastly stock in a transaction dated Tuesday, August 18th. The stock was sold at an average price of $28.60, for a total value of $926,268.20. Following the transaction, the chief technology officer directly owned 2,005,191 shares of the company’s stock, valued at $57,348,462.60. The trade was a 1.59% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Charles Lacey Compton III sold 34,552 shares of the business’s stock in a transaction dated Tuesday, August 18th. The stock was sold at an average price of $28.60, for a total value of $988,187.20. Following the sale, the chief executive officer owned 996,040 shares of the company’s stock, valued at $28,486,744. The trade was a 3.35% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders have sold 436,364 shares of company stock valued at $10,739,032. 4.20% of the stock is owned by company insiders.

Institutional Investors Weigh In On Fastly

Several large investors have recently made changes to their positions in the business. EverSource Wealth Advisors LLC boosted its stake in Fastly by 39.8% during the 1st quarter. EverSource Wealth Advisors LLC now owns 2,204 shares of the company’s stock valued at $64,000 after acquiring an additional 627 shares during the last quarter. PNC Financial Services Group Inc. increased its position in shares of Fastly by 84.6% in the 1st 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 during the last quarter. Kestra Advisory Services LLC raised its stake in shares of Fastly by 8.4% in the 4th quarter. Kestra Advisory Services LLC now owns 11,970 shares of the company’s stock valued at $122,000 after purchasing an additional 930 shares in the last quarter. Parallax Volatility Advisers L.P. raised its stake in shares of Fastly by 13.8% in the 3rd quarter. Parallax Volatility Advisers L.P. now owns 12,095 shares of the company’s stock valued at $103,000 after purchasing an additional 1,465 shares in the last quarter. Finally, Sound Income Strategies LLC bought a new position in shares of Fastly during the first quarter worth about $44,000. Institutional investors and hedge funds own 79.71% of the company’s stock.

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.