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

Fastly, Inc. (NYSE:FSLY)’s stock price gapped up before the market opened on Monday . The stock had previously closed at $8.48, but opened at $9.22. Fastly shares last traded at $9.98, with a volume of 3,283,487 shares trading hands.

Analyst Ratings Changes

A number of equities research analysts recently issued reports on the company. Piper Sandler upped their target price on Fastly from $6.00 to $8.00 and gave the company a “neutral” rating in a research note on Thursday, November 7th. Craig Hallum lifted their price objective on Fastly from $6.00 to $8.00 and gave the stock a “hold” rating in a research report on Thursday, November 7th. Royal Bank of Canada boosted their price objective on shares of Fastly from $6.00 to $7.00 and gave the company a “sector perform” rating in a research report on Thursday, November 7th. Raymond James lowered shares of Fastly from a “strong-buy” rating to a “market perform” rating in a research report on Tuesday, October 1st. Finally, Morgan Stanley reduced their price target on Fastly from $12.00 to $7.00 and set an “equal weight” rating on the stock in a research note on Tuesday, August 27th. One investment analyst has rated the stock with a sell rating, eight have given a hold rating and one has given a buy rating to the company’s stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Hold” and an average target price of $8.35.

Fastly Stock Performance

The company has a debt-to-equity ratio of 0.36, a quick ratio of 3.97 and a current ratio of 3.97. The firm has a market capitalization of $1.39 billion, a price-to-earnings ratio of -9.06 and a beta of 1.24. The stock’s fifty day moving average is $7.39 and its two-hundred day moving average is $7.25.

Fastly (NYSE:FSLY) last posted its quarterly earnings results on Wednesday, November 6th. The company reported $0.02 earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.06) by $0.08. The firm 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 firm’s quarterly revenue was up 7.3% on a year-over-year basis. During the same period in the prior year, the company posted ($0.33) earnings per share. Analysts forecast that Fastly, Inc. will post -0.87 earnings per share for the current year.

Insider Activity at Fastly

In other Fastly news, CTO Artur Bergman sold 19,889 shares of the firm’s stock in a transaction that occurred on Tuesday, September 3rd. The shares were sold at an average price of $5.96, for a total value of $118,538.44. Following the sale, the chief technology officer now owns 6,205,000 shares in the company, valued at approximately $36,981,800. This trade represents a 0.32 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, CEO Todd Nightingale sold 49,816 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 $311,350.00. Following the completion of the sale, the chief executive officer now owns 1,600,973 shares in the company, valued at approximately $10,006,081.25. This represents a 3.02 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 174,439 shares of company stock valued at $1,209,560. Corporate insiders own 6.70% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds have recently bought and sold shares of FSLY. Geode Capital Management LLC lifted its position in shares of Fastly by 1.6% in the 3rd quarter. Geode Capital Management LLC now owns 3,015,455 shares of the company’s stock valued at $22,831,000 after acquiring an additional 46,951 shares in the last quarter. Public Employees Retirement System of Ohio purchased a new stake in shares of Fastly in the third quarter valued at $183,000. XTX Topco Ltd acquired a new stake in shares of Fastly in the third quarter worth $400,000. Zacks Investment Management purchased a new position in shares of Fastly during the third quarter valued at $914,000. Finally, Quadrature Capital Ltd raised its position in Fastly by 84.2% during the third quarter. Quadrature Capital Ltd now owns 112,085 shares of the company’s stock valued at $848,000 after buying an additional 51,224 shares during the period. 79.71% of the stock is owned by institutional investors and hedge funds.

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.