Fastly (NYSE:FSLY) Shares Gap Down – Should You Sell?

Shares of Fastly, Inc. (NYSE:FSLY) gapped down prior to trading on Monday . The stock had previously closed at $6.41, but opened at $6.28. Fastly shares last traded at $6.30, with a volume of 952,358 shares changing hands.

Analyst Ratings Changes

A number of brokerages have issued reports on FSLY. Robert W. Baird lifted their price target on Fastly from $7.00 to $8.00 and gave the stock a “neutral” rating in a report on Thursday, November 7th. Morgan Stanley dropped their target price on shares of Fastly from $12.00 to $7.00 and set an “equal weight” rating on the stock in a research report on Tuesday, August 27th. Craig Hallum upped their price objective on shares of Fastly from $6.00 to $8.00 and gave the company a “hold” rating in a research note on Thursday, November 7th. Piper Sandler boosted their target price on Fastly from $6.00 to $8.00 and gave the company a “neutral” rating in a report on Thursday, November 7th. Finally, Raymond James lowered Fastly from a “strong-buy” rating to a “market perform” rating in a research report on Tuesday, October 1st. One analyst has rated the stock with a sell rating and eight have assigned a hold rating to the company. Based on data from MarketBeat, the stock presently has a consensus rating of “Hold” and a consensus target price of $7.94.

Fastly Trading Down 3.4 %

The firm has a market capitalization of $909.14 million, a PE ratio of -6.16 and a beta of 1.24. The firm has a fifty day moving average of $7.23 and a 200 day moving average of $7.30. The company has a debt-to-equity ratio of 0.36, a quick ratio of 3.97 and a current ratio of 3.97.

Fastly (NYSE:FSLY) last released its quarterly earnings data on Wednesday, November 6th. The company reported $0.02 earnings per share for the quarter, topping analysts’ consensus estimates of ($0.06) by $0.08. The business had revenue of $137.21 million for the quarter, compared to analysts’ expectations of $131.86 million. Fastly had a negative net margin of 27.47% and a negative return on equity of 13.24%. The company’s revenue for the quarter was up 7.3% compared to the same quarter last year. During the same quarter last year, the company earned ($0.33) EPS. Equities research analysts expect that Fastly, Inc. will post -0.86 EPS for the current year.

Insider Buying and Selling

In related news, CFO Ronald W. Kisling sold 7,449 shares of the business’s stock in a transaction that occurred on Wednesday, October 16th. The shares were sold at an average price of $7.24, for a total value of $53,930.76. Following the completion of the transaction, the chief financial officer now owns 558,564 shares in the company, valued at $4,044,003.36. The trade was a 1.32 % decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. Also, CTO Artur Bergman sold 49,178 shares of the firm’s stock in a transaction dated Wednesday, November 6th. The shares were sold at an average price of $8.07, for a total value of $396,866.46. Following the completion of the transaction, the chief technology officer now owns 6,155,822 shares in the company, valued at approximately $49,677,483.54. This represents a 0.79 % decrease in their position. The disclosure for this sale can be found here. Insiders have sold 92,790 shares of company stock worth $670,655 in the last ninety days. 6.70% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently made changes to their positions in the stock. Point72 DIFC Ltd acquired a new stake in shares of Fastly in the 2nd quarter valued at approximately $38,000. Cambridge Trust Co. acquired a new stake in Fastly in the first quarter worth $39,000. FMR LLC boosted its position in shares of Fastly by 124.2% during the third quarter. FMR LLC now owns 6,357 shares of the company’s stock worth $48,000 after purchasing an additional 3,522 shares in the last quarter. Cape Investment Advisory Inc. grew its holdings in shares of Fastly by 27,666.7% in the 1st quarter. Cape Investment Advisory Inc. now owns 4,165 shares of the company’s stock valued at $54,000 after buying an additional 4,150 shares during the period. Finally, EMC Capital Management increased its position in shares of Fastly by 400.0% in the 2nd quarter. EMC Capital Management now owns 7,500 shares of the company’s stock valued at $54,000 after buying an additional 6,000 shares in the last quarter. 79.71% of the stock is currently owned by institutional investors.

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.