Fastly (NYSE:FSLY) Shares Gap Up – Still a Buy?

Fastly, Inc. (NYSE:FSLY)’s share price gapped up prior to trading 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 changing hands.

Analyst Upgrades and Downgrades

A number of equities analysts have recently weighed in on the stock. Morgan Stanley lowered their price target on shares of Fastly from $12.00 to $7.00 and set an “equal weight” rating on the stock in a research note on Tuesday, August 27th. Raymond James cut Fastly from a “strong-buy” rating to a “market perform” rating in a report on Tuesday, October 1st. Robert W. Baird lifted their price target on Fastly from $7.00 to $8.00 and gave the stock a “neutral” rating in a research note on Thursday, November 7th. Oppenheimer raised shares of Fastly from a “market perform” rating to an “outperform” rating and set a $12.00 price objective on the stock in a research note on Monday. Finally, Piper Sandler increased their price target on shares of Fastly from $8.00 to $10.00 and gave the company a “neutral” rating in a research report on Tuesday. One analyst has rated the stock with a sell rating, eight have given a hold rating and one has given a buy rating to the stock. According to data from MarketBeat.com, the company has an average rating of “Hold” and a consensus target price of $8.55.

Fastly Price Performance

The company has a market capitalization of $1.32 billion, a PE ratio of -8.61 and a beta of 1.27. 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 company’s 50 day moving average price is $7.48 and its 200-day moving average price is $7.27.

Fastly (NYSE:FSLY) last released its quarterly earnings data on Wednesday, November 6th. The company reported $0.02 earnings per share for the quarter, beating the consensus estimate of ($0.06) by $0.08. The business had revenue of $137.21 million for the quarter, compared to analyst estimates of $131.86 million. Fastly had a negative return on equity of 13.24% and a negative net margin of 27.47%. The company’s revenue was up 7.3% compared to the same quarter last year. During the same period in the previous year, the company posted ($0.33) EPS. On average, sell-side analysts forecast that Fastly, Inc. will post -0.87 earnings per share for the current fiscal year.

Insider Activity at Fastly

In related news, CTO Artur Bergman sold 49,178 shares of the firm’s stock in a transaction on Wednesday, November 6th. The shares were sold at an average price of $8.07, for a total transaction of $396,866.46. Following the completion of the sale, the chief technology officer now directly owns 6,155,822 shares of the company’s stock, valued at approximately $49,677,483.54. This trade represents a 0.79 % decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, CFO Ronald W. Kisling sold 7,449 shares of the business’s stock in a transaction on Wednesday, October 16th. The stock was sold at an average price of $7.24, for a total transaction 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. This represents a 1.32 % decrease in their position. The disclosure for this sale can be found here. In the last three months, insiders sold 154,550 shares of company stock worth $1,091,021. Corporate 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. Bank of Montreal Can boosted its stake in shares of Fastly by 11,140.2% during the 3rd quarter. Bank of Montreal Can now owns 1,305,101 shares of the company’s stock valued at $9,867,000 after buying an additional 1,293,490 shares during the last quarter. Penserra Capital Management LLC boosted its stake in Fastly by 18.8% during the 3rd quarter. Penserra Capital Management LLC now owns 5,075,127 shares of the company’s stock valued at $38,418,000 after acquiring an additional 801,968 shares during the last quarter. Qsemble Capital Management LP acquired a new position in Fastly during the 2nd quarter worth $586,000. SG Americas Securities LLC increased its position in shares of Fastly by 77.5% in the 3rd quarter. SG Americas Securities LLC now owns 221,357 shares of the company’s stock worth $1,676,000 after purchasing an additional 96,664 shares during the last quarter. Finally, Marshall Wace LLP raised its stake in shares of Fastly by 1,197.4% in the 2nd quarter. Marshall Wace LLP now owns 151,172 shares of the company’s stock valued at $1,114,000 after purchasing an additional 139,520 shares in the last quarter. Institutional investors and hedge funds 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.