Fastly (NASDAQ:FSLY) Stock Price Up 8.9% – Should You Buy?

Fastly, Inc. (NASDAQ:FSLY) shares shot up 8.9% during mid-day trading on Wednesday. The company traded as high as $24.14 and last traded at $24.0330. 2,437,721 shares were traded during mid-day trading, a decline of 73% from the average session volume of 9,042,179 shares. The stock had previously closed at $22.07.

Wall Street Analysts Forecast Growth

Several analysts have issued reports on FSLY shares. Freedom Broker raised their price target on shares of Fastly from $32.00 to $37.00 and gave the stock a “buy” rating in a research report on Wednesday, September 23rd. Weiss Ratings restated a “sell (d-)” rating on shares of Fastly in a research note on Friday, August 7th. Oppenheimer upgraded shares of Fastly from a “market perform” rating to an “outperform” rating and set a $35.00 price target for the company in a research note on Friday, October 9th. Canaccord Genuity Group initiated coverage on Fastly in a research note on Friday, July 17th. They set a “buy” rating and a $27.00 price objective for the company. Finally, KeyCorp restated an “overweight” rating and issued a $30.00 price target on shares of Fastly in a research report on Friday, September 18th. One equities research analyst has rated the stock with a Strong Buy rating, seven have issued a Buy rating, five have assigned a Hold rating and two have given a Sell rating to the stock. According to data from MarketBeat.com, Fastly presently has an average rating of “Hold” and an average price target of $27.42.

Fastly Stock Performance

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 $3.66 billion, a price-to-earnings ratio of -43.42 and a beta of 0.31. The stock’s fifty day moving average is $24.45 and its 200-day moving average is $22.38.

Fastly (NASDAQ:FSLY) last released its quarterly earnings data on Wednesday, August 5th. The company reported $0.15 EPS for the quarter, beating analysts’ consensus estimates 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 business 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, analysts forecast that Fastly, Inc. will post -0.29 EPS for the current year.

Insider Activity

In related news, CTO Artur Bergman sold 379,602 shares of the stock in a transaction on Wednesday, September 23rd. The shares were sold at an average price of $30.16, for a total transaction of $11,448,796.32. Following the completion of the transaction, the chief technology officer owned 1,138,358 shares in the company, valued at approximately $34,332,877.28. This represents a 25.01% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Scott Lovett sold 41,815 shares of the business’s stock in a transaction dated Thursday, September 17th. The stock was sold at an average price of $24.64, for a total transaction of $1,030,321.60. Following the sale, the insider directly owned 1,281,583 shares in the company, valued at $31,578,205.12. This trade represents a 3.16% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders have sold 1,303,861 shares of company stock worth $34,911,221. 4.20% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Fastly

Several institutional investors and hedge funds have recently modified their holdings of FSLY. Bank of America Corp DE lifted its position in shares of Fastly by 120.0% during the 1st quarter. Bank of America Corp DE now owns 1,269,369 shares of the company’s stock worth $36,888,000 after buying an additional 692,459 shares during the last quarter. Convergence Investment Partners LLC acquired a new stake in Fastly in the first quarter valued at approximately $1,951,000. Range Financial Group LLC bought a new position in shares of Fastly in the 1st quarter valued at $1,667,000. Castleark Management LLC bought a new position in shares of Fastly in the 1st quarter valued at $5,164,000. Finally, Wellington Management Group LLP bought a new stake in Fastly during the 2nd quarter worth $8,696,000. 79.71% of the stock is currently 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.