Fastly (NYSE:FSLY) Shares Gap Up – Should You Buy?

Shares of Fastly, Inc. (NYSE:FSLY) gapped up before the market opened on Tuesday . The stock had previously closed at $9.78, but opened at $10.58. Fastly shares last traded at $10.0110, with a volume of 1,765,230 shares changing hands.

Wall Street Analyst Weigh In

Several research firms have issued reports on FSLY. Royal Bank Of Canada raised their target price on Fastly from $9.00 to $10.00 and gave the stock a “sector perform” rating in a research note on Monday, January 5th. DA Davidson increased their price target on Fastly from $9.50 to $11.50 and gave the stock a “neutral” rating in a report on Tuesday, November 11th. Oppenheimer began coverage on shares of Fastly in a report on Monday, November 17th. They issued a “market perform” rating on the stock. Citigroup decreased their target price on shares of Fastly from $12.00 to $10.00 and set a “neutral” rating on the stock in a research report on Friday, January 16th. Finally, Wall Street Zen raised shares of Fastly from a “hold” rating to a “buy” rating in a research note on Saturday, November 15th. Two investment analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, the stock currently has an average rating of “Hold” and a consensus target price of $10.64.

Fastly Trading Down 3.0%

The company has a fifty day simple moving average of $10.33 and a two-hundred day simple moving average of $8.88. The company has a current ratio of 1.46, a quick ratio of 1.46 and a debt-to-equity ratio of 0.16. The company has a market cap of $1.44 billion, a PE ratio of -10.02 and a beta of 0.98.

Fastly (NYSE:FSLY) last released its quarterly earnings data on Wednesday, November 5th. The company reported $0.07 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.01 by $0.06. The business had revenue of $158.22 million during the quarter, compared to analysts’ expectations of $151.04 million. Fastly had a negative net margin of 23.49% and a negative return on equity of 12.02%. The company’s revenue for the quarter was up 15.3% on a year-over-year basis. During the same period in the previous year, the company earned $0.02 EPS. Fastly has set its Q4 2025 guidance at 0.040-0.080 EPS and its FY 2025 guidance at 0.030-0.070 EPS. Analysts anticipate that Fastly, Inc. will post -0.78 EPS for the current year.

Insider Transactions at Fastly

In other Fastly news, CTO Artur Bergman sold 49,320 shares of the stock in a transaction that occurred on Tuesday, January 27th. The shares were sold at an average price of $10.40, for a total value of $512,928.00. Following the transaction, the chief technology officer directly owned 2,570,579 shares in the company, valued at $26,734,021.60. This represents a 1.88% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, CEO Charles Lacey Compton III sold 4,638 shares of the business’s stock in a transaction that occurred on Tuesday, January 20th. The stock was sold at an average price of $8.81, for a total transaction of $40,860.78. Following the sale, the chief executive officer owned 612,232 shares of the company’s stock, valued at $5,393,763.92. This represents a 0.75% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last 90 days, insiders have sold 949,248 shares of company stock valued at $9,957,349. Corporate insiders own 6.70% of the company’s stock.

Institutional Investors Weigh In On Fastly

Institutional investors and hedge funds have recently bought and sold shares of the stock. Byrne Asset Management LLC acquired a new stake in shares of Fastly during the third quarter worth about $43,000. Quarry LP acquired a new stake in shares of Fastly in the 3rd quarter valued at about $49,000. Geneos Wealth Management Inc. purchased a new position in Fastly during the 1st quarter worth approximately $52,000. Pilgrim Partners Asia Pte Ltd acquired a new position in Fastly during the third quarter worth approximately $56,000. Finally, State of Alaska Department of Revenue acquired a new position in Fastly during the third quarter worth approximately $57,000. 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.