Fastly (NASDAQ:FSLY) Trading 9.2% Higher – Here’s Why

Shares of Fastly, Inc. (NASDAQ:FSLY) were up 9.2% during trading on Thursday . The stock traded as high as $25.57 and last traded at $25.6940. Approximately 1,595,951 shares traded hands during trading, a decline of 83% from the average session volume of 9,188,846 shares. The stock had previously closed at $23.54.

Key Fastly News

Here are the key news stories impacting Fastly this week:

• Positive Sentiment: Fastly’s latest quarterly results exceeded expectations, with adjusted earnings of $0.15 per share versus the $0.07 consensus and revenue of $183.32 million versus estimates of $173.94 million. Management’s fiscal 2026 EPS guidance of $0.50–$0.54 also supports the turnaround narrative. Analysts’ average price target of $25.33 remains above the recent trading level, although the consensus rating is Hold. Fastly’s Q2 Rally Shows Investors Are Buying the Edge AI Turnaround
• Positive Sentiment: Institutional ownership remains high at approximately 79.7%, while several investment firms established or expanded positions during the second quarter. This may provide some support for the stock’s edge-cloud and artificial-intelligence growth story.
• Neutral Sentiment: Fastly’s CTO Artur Bergman sold 2,500 shares for about $62,850 under a pre-arranged Rule 10b5-1 trading plan. Because the sale was scheduled in advance and represented only 0.16% of his holdings, its immediate signal may be limited. Fastly CTO Artur Bergman Sells 2,500 Shares
• Negative Sentiment: Multiple insiders sold significant amounts of stock: Scott Lovett sold 34,820 shares for approximately $830,000, while Jeffrey Ford sold 37,091 shares for about $884,000. The transactions reduced their holdings by 2.56% and 11.15%, respectively, adding selling pressure and potentially weakening investor confidence. Fastly Insider Sale Filing
• Negative Sentiment: Recent reports also highlight repeated insider sales by CTO Artur Bergman, including a combined 31,079-share sale on September 14 and additional transactions in recent weeks. Although some sales used 10b5-1 plans, the frequency and size of the transactions may pressure FSLY. Artur Bergman Sells Fastly Shares
• Negative Sentiment: Concerns about substantial stock-based compensation and continued GAAP losses remain an overhang. Investors may question the quality of Fastly’s adjusted profitability and the potential dilution to shareholders. Fastly: SBC Running Rampant As GAAP Profitability Remains Under Water

Wall Street Analysts Forecast Growth

Several research analysts have recently weighed in on FSLY shares. Raymond James Financial reiterated an “outperform” rating and issued a $29.00 price target on shares of Fastly in a report on Thursday, August 6th. Royal Bank Of Canada raised their price objective on shares of Fastly from $22.00 to $28.00 and gave the stock a “sector perform” rating in a report on Thursday, August 6th. Evercore reaffirmed an “outperform” rating on shares of Fastly in a research report on Thursday, August 6th. Canaccord Genuity Group began coverage on shares of Fastly in a research note on Friday, July 17th. They issued a “buy” rating and a $27.00 target price for the company. Finally, Freedom Capital upgraded Fastly to a “strong-buy” rating in a report on Thursday, July 16th. One analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating, six have issued a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, the company presently has a consensus rating of “Hold” and a consensus target price of $25.33.

Fastly Stock Down 2.9%

The firm’s 50 day simple moving average is $23.10 and its 200-day simple moving average is $22.44. The company has a current ratio of 3.36, a quick ratio of 3.36 and a debt-to-equity ratio of 0.33. The stock has a market capitalization of $3.80 billion, a price-to-earnings ratio of -45.02 and a beta of 0.36.

Fastly (NASDAQ:FSLY) last posted its quarterly earnings data on Wednesday, August 5th. The company reported $0.15 EPS for the quarter, topping analysts’ consensus estimates of $0.07 by $0.08. The company had revenue of $183.32 million during the quarter, compared to the consensus estimate of $173.94 million. Fastly had a negative net margin of 11.80% and a negative return on equity of 6.31%. Fastly has set its FY 2026 guidance at 0.500-0.540 EPS and its Q3 2026 guidance at 0.110-0.130 EPS. Equities analysts expect that Fastly, Inc. will post -0.29 earnings per share for the current fiscal year.

Insider Activity

In other Fastly news, insider Jeffrey Ford sold 37,091 shares of the firm’s stock in a transaction that occurred on Wednesday, September 16th. The stock was sold at an average price of $23.84, for a total value of $884,249.44. Following the completion of the transaction, the insider directly owned 295,693 shares in the company, valued at $7,049,321.12. This trade represents a 11.15% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, CFO Richard Wong sold 148,015 shares of the business’s stock in a transaction that occurred on Tuesday, August 18th. The stock was sold at an average price of $28.61, for a total value of $4,234,709.15. Following the transaction, the chief financial officer directly owned 1,091,286 shares in the company, valued at $31,221,692.46. This trade represents a 11.94% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last ninety days, insiders sold 659,837 shares of company stock valued at $16,630,097. Corporate insiders own 4.20% of the company’s stock.

Hedge Funds Weigh In On Fastly

A number of institutional investors have recently added to or reduced their stakes in FSLY. IFP Advisors Inc lifted its stake in Fastly by 1,621.7% in the second quarter. IFP Advisors Inc now owns 1,429 shares of the company’s stock valued at $26,000 after acquiring an additional 1,346 shares during the last quarter. PNC Financial Services Group Inc. increased its stake in shares of Fastly by 84.6% during the 1st quarter. PNC Financial Services Group Inc. now owns 1,381 shares of the company’s stock worth $40,000 after purchasing an additional 633 shares during the last quarter. Caitong International Asset Management Co. Ltd bought a new stake in shares of Fastly in the 4th quarter valued at about $41,000. Sound Income Strategies LLC acquired a new stake in Fastly in the 1st quarter valued at about $44,000. Finally, Integrated Wealth Concepts LLC bought a new position in Fastly during the second quarter worth about $48,000. 79.71% of the stock is currently owned by institutional investors and hedge funds.

About Fastly

Fastly, Inc is a cloud computing company that provides an edge cloud platform for delivering, securing and accelerating digital experiences. Its platform processes and serves applications, websites, APIs, streaming media and other internet content closer to end users, helping organizations improve performance, reliability and control.

Fastly’s product portfolio includes content delivery and application performance services, application programming interface (API) security, web application and bot protection, distributed denial-of-service (DDoS) mitigation, and edge compute capabilities.