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

Fastly, Inc. (NASDAQ:FSLY)’s stock price gapped up prior to trading on Friday. The stock had previously closed at $25.29, but opened at $26.90. Fastly shares last traded at $28.0210, with a volume of 1,656,295 shares trading hands.

Analysts Set New Price Targets

Several research firms recently issued reports on FSLY. Royal Bank Of Canada reaffirmed a “sector perform” rating and set a $25.00 price objective on shares of Fastly in a report on Wednesday, September 23rd. Raymond James Financial reiterated an “outperform” rating on shares of Fastly in a research note on Wednesday, September 23rd. Canaccord Genuity Group initiated coverage on Fastly in a research report on Friday, July 17th. They set a “buy” rating and a $27.00 price objective for the company. KeyCorp restated an “overweight” rating and set a $30.00 target price on shares of Fastly in a research note on Friday, September 18th. Finally, Evercore reaffirmed an “outperform” rating on shares of Fastly in a report on Wednesday, September 23rd. One investment analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating, five have given a Hold rating and two have given a Sell rating to the stock. According to data from MarketBeat, the company has an average rating of “Hold” and an average target price of $27.42.

Fastly Trading Up 14.3%

The company has a debt-to-equity ratio of 0.33, a quick ratio of 3.36 and a current ratio of 3.36. The firm has a market capitalization of $4.61 billion, a P/E ratio of -54.56 and a beta of 0.31. The firm has a 50 day simple moving average of $24.68 and a two-hundred day simple moving average of $22.73.

Fastly (NASDAQ:FSLY) last released its quarterly earnings data on Wednesday, August 5th. The company reported $0.15 EPS for the quarter, beating the consensus estimate of $0.07 by $0.08. Fastly had a negative net margin of 11.80% and a negative return on equity of 6.31%. The business had revenue of $183.32 million for the quarter, compared to the consensus estimate of $173.94 million. 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 research analysts forecast that Fastly, Inc. will post -0.29 earnings per share for the current year.

Insider Buying and Selling at Fastly

In other Fastly news, insider Scott Lovett sold 41,815 shares of the business’s stock in a transaction dated Thursday, September 17th. The shares were sold at an average price of $24.64, for a total value of $1,030,321.60. Following the transaction, the insider owned 1,281,583 shares in the company, valued at approximately $31,578,205.12. The trade was a 3.16% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CTO Artur Bergman sold 3,961 shares of Fastly stock in a transaction on Tuesday, September 29th. The shares were sold at an average price of $25.26, for a total transaction of $100,054.86. Following the completion of the sale, the chief technology officer owned 1,101,319 shares in the company, valued at approximately $27,819,317.94. This trade represents a 0.36% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders sold 1,243,371 shares of company stock worth $33,335,165. 4.20% of the stock is currently owned by insiders.

Institutional Trading of Fastly

Several hedge funds and other institutional investors have recently made changes to their positions in FSLY. First Trust Advisors LP grew its stake in shares of Fastly by 100.5% in the first quarter. First Trust Advisors LP now owns 7,031,952 shares of the company’s stock worth $204,349,000 after acquiring an additional 3,524,763 shares during the last quarter. Dimensional Fund Advisors LP raised its position in shares of Fastly by 0.4% in the 1st quarter. Dimensional Fund Advisors LP now owns 2,741,549 shares of the company’s stock worth $79,620,000 after purchasing an additional 11,022 shares during the last quarter. Bank of America Corp DE raised its position in shares of Fastly by 120.0% in the 1st quarter. Bank of America Corp DE now owns 1,269,369 shares of the company’s stock worth $36,888,000 after purchasing an additional 692,459 shares during the last quarter. SG Americas Securities LLC boosted its stake in Fastly by 90.7% in the 1st quarter. SG Americas Securities LLC now owns 685,415 shares of the company’s stock worth $19,918,000 after purchasing an additional 326,087 shares in the last quarter. Finally, Wellington Management Group LLP bought a new position in Fastly in the 2nd quarter worth about $8,696,000. Hedge funds and other institutional investors own 79.71% of the company’s stock.

About Fastly

Fastly, Inc (NASDAQ: FSLY) is a technology company that provides an edge cloud platform designed to help businesses deliver, secure and operate digital applications and content closer to end users. Its platform supports websites, mobile applications, APIs, streaming media and other internet services by processing data at the edge of the network, helping organizations improve performance, scalability and reliability.

Fastly’s products and services include content delivery, edge computing, application programming interface (API) services, cloud security and observability tools.