Fastly (NYSE:FSLY) Shares Gap Up – Here’s Why

Fastly, Inc. (NYSE:FSLY) shares gapped up prior to trading on Wednesday . The stock had previously closed at $11.33, but opened at $11.79. Fastly shares last traded at $11.60, with a volume of 940,543 shares.

Analyst Ratings Changes

Several analysts have weighed in on FSLY shares. Morgan Stanley lowered their price target on shares of Fastly from $12.00 to $7.00 and set an “equal weight” rating for the company in a research note on Tuesday, August 27th. Craig Hallum boosted their target price on Fastly from $6.00 to $8.00 and gave the company a “hold” rating in a research note on Thursday, November 7th. Piper Sandler raised their price target on Fastly from $8.00 to $10.00 and gave the stock a “neutral” rating in a research report on Tuesday, December 3rd. Raymond James downgraded Fastly from a “strong-buy” rating to a “market perform” rating in a research report on Tuesday, October 1st. Finally, Royal Bank of Canada raised their target price on shares of Fastly from $6.00 to $7.00 and gave the stock a “sector perform” rating in a report on Thursday, November 7th. One investment analyst has rated the stock with a sell rating, eight have assigned a hold rating and one has assigned a buy rating to the stock. Based on data from MarketBeat.com, the stock presently has an average rating of “Hold” and a consensus price target of $8.55.

Fastly Stock Down 5.1 %

The company has a fifty day simple moving average of $8.23 and a 200-day simple moving average of $7.46. The company has a quick ratio of 3.97, a current ratio of 3.97 and a debt-to-equity ratio of 0.36. The firm has a market cap of $1.40 billion, a P/E ratio of -9.16 and a beta of 1.27.

Fastly (NYSE:FSLY) last released its earnings results on Wednesday, November 6th. The company reported $0.02 earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.06) by $0.08. Fastly had a negative net margin of 27.47% and a negative return on equity of 13.24%. The company had revenue of $137.21 million during the quarter, compared to analyst estimates of $131.86 million. During the same period in the prior year, the firm posted ($0.33) EPS. The firm’s quarterly revenue was up 7.3% compared to the same quarter last year. On average, equities analysts anticipate that Fastly, Inc. will post -0.86 earnings per share for the current year.

Insider Buying and Selling

In other news, CEO Todd Nightingale sold 49,816 shares of the firm’s stock in a transaction dated Monday, November 18th. The stock was sold at an average price of $6.25, for a total transaction of $311,350.00. Following the completion of the transaction, the chief executive officer now owns 1,600,973 shares in the company, valued at $10,006,081.25. This trade represents a 3.02 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. Also, CTO Artur Bergman sold 16,922 shares of the firm’s stock in a transaction that occurred on Monday, November 18th. The shares were sold at an average price of $6.25, for a total value of $105,762.50. Following the transaction, the chief technology officer now owns 6,138,900 shares of the company’s stock, valued at $38,368,125. This represents a 0.27 % decrease in their position. The disclosure for this sale can be found here. In the last quarter, insiders sold 215,241 shares of company stock valued at $1,699,684. Company insiders own 6.70% of the company’s stock.

Institutional Investors Weigh In On Fastly

Hedge funds have recently bought and sold shares of the business. Point72 DIFC Ltd purchased a new position in shares of Fastly in the 2nd quarter worth approximately $38,000. FMR LLC boosted its stake in Fastly by 124.2% during the third quarter. FMR LLC now owns 6,357 shares of the company’s stock worth $48,000 after buying an additional 3,522 shares during the period. EMC Capital Management increased its position in Fastly by 400.0% during the second quarter. EMC Capital Management now owns 7,500 shares of the company’s stock valued at $54,000 after acquiring an additional 6,000 shares during the last quarter. Daiwa Securities Group Inc. increased its position in Fastly by 95.3% during the second quarter. Daiwa Securities Group Inc. now owns 8,849 shares of the company’s stock valued at $65,000 after acquiring an additional 4,318 shares during the last quarter. Finally, Aigen Investment Management LP bought a new stake in shares of Fastly in the 3rd quarter worth about $89,000. Hedge funds and other institutional investors own 79.71% of the company’s stock.

About Fastly

Fastly, Inc operates an edge cloud platform for processing, serving, and securing its customer's applications in the United States, the Asia Pacific, Europe, and internationally. The edge cloud is a category of Infrastructure as a Service that enables developers to build, secure, and deliver digital experiences at the edge of the internet.