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

Fastly, Inc. (NYSE:FSLY) gapped down prior to trading on Tuesday . The stock had previously closed at $9.87, but opened at $9.57. Fastly shares last traded at $9.27, with a volume of 2,575,584 shares trading hands.

Wall Street Analyst Weigh In

Several brokerages recently weighed in on FSLY. Robert W. Baird upped their target price on shares of Fastly from $7.00 to $8.00 and gave the stock a “neutral” rating in a research note on Thursday, November 7th. Craig Hallum lifted their target price on Fastly from $6.00 to $8.00 and gave the company a “hold” rating in a report on Thursday, November 7th. Raymond James downgraded Fastly from a “strong-buy” rating to a “market perform” rating in a report on Tuesday, October 1st. Oppenheimer upgraded Fastly from a “market perform” rating to an “outperform” rating and set a $12.00 price objective for the company in a research note on Monday. Finally, Royal Bank of Canada upped their target price on shares of Fastly from $6.00 to $7.00 and gave the stock a “sector perform” rating in a research note on Thursday, November 7th. One analyst has rated the stock with a sell rating, eight have issued a hold rating and one has given a buy rating to the stock. According to MarketBeat.com, Fastly presently has an average rating of “Hold” and a consensus target price of $8.55.

Fastly Stock Performance

The firm’s fifty day moving average price is $7.39 and its 200-day moving average price is $7.25. The company has a current ratio of 3.97, a quick ratio of 3.97 and a debt-to-equity ratio of 0.36. The firm has a market cap of $1.30 billion, a price-to-earnings ratio of -8.50 and a beta of 1.27.

Fastly (NYSE:FSLY) last posted its earnings results on Wednesday, November 6th. The company reported $0.02 EPS 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 return on equity of 13.24% and a negative net margin of 27.47%. The business’s revenue was up 7.3% compared to the same quarter last year. During the same quarter in the previous year, the firm earned ($0.33) earnings per share. Analysts expect that Fastly, Inc. will post -0.87 earnings per share for the current year.

Insider Activity

In other Fastly news, CEO Todd Nightingale sold 12,163 shares of the company’s stock in a transaction on Monday, November 25th. The shares were sold at an average price of $8.12, for a total transaction of $98,763.56. Following the completion of the transaction, the chief executive officer now owns 1,588,810 shares in the company, valued at approximately $12,901,137.20. This represents a 0.76 % decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CFO Ronald W. Kisling sold 7,449 shares of the firm’s stock in a transaction dated Wednesday, October 16th. The shares were sold at an average price of $7.24, for a total transaction of $53,930.76. Following the completion of the sale, the chief financial officer now owns 558,564 shares of the company’s stock, valued at approximately $4,044,003.36. The trade was a 1.32 % decrease in their position. The disclosure for this sale can be found here. Over the last three months, insiders sold 154,550 shares of company stock valued at $1,091,021. Insiders own 6.70% of the company’s stock.

Institutional Investors Weigh In On Fastly

A number of institutional investors and hedge funds have recently modified their holdings of the company. Bank of Montreal Can boosted its position in Fastly by 11,140.2% during the third quarter. Bank of Montreal Can now owns 1,305,101 shares of the company’s stock worth $9,867,000 after purchasing an additional 1,293,490 shares in the last quarter. Penserra Capital Management LLC boosted its position in shares of Fastly by 18.8% in the 3rd quarter. Penserra Capital Management LLC now owns 5,075,127 shares of the company’s stock worth $38,418,000 after buying an additional 801,968 shares in the last quarter. Qsemble Capital Management LP acquired a new stake in Fastly in the 2nd quarter valued at about $586,000. SG Americas Securities LLC grew its stake in Fastly by 77.5% in the 3rd quarter. SG Americas Securities LLC now owns 221,357 shares of the company’s stock valued at $1,676,000 after acquiring an additional 96,664 shares during the last quarter. Finally, Marshall Wace LLP increased its holdings in Fastly by 1,197.4% during the 2nd quarter. Marshall Wace LLP now owns 151,172 shares of the company’s stock valued at $1,114,000 after acquiring an additional 139,520 shares in the last quarter. Institutional investors and hedge funds own 79.71% of the company’s stock.

Fastly Company Profile

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.