Fastly (NASDAQ:FSLY) Shares Up 8.9% Following Analyst Upgrade

Fastly, Inc. (NASDAQ:FSLY)’s stock price was up 8.9% on Wednesday after DA Davidson raised their price target on the stock from $21.00 to $23.00. DA Davidson currently has a neutral rating on the stock. Fastly traded as high as $27.26 and last traded at $28.4090. 7,594,062 shares were traded during mid-day trading, a decline of 18% from the average session volume of 9,230,213 shares. The stock had previously closed at $26.08.

Several other research firms have also recently weighed in on FSLY. Raymond James Financial reiterated an “outperform” rating on shares of Fastly in a research report on Wednesday. Freedom Capital raised shares of Fastly to a “strong-buy” rating in a research report on Thursday, July 16th. Canaccord Genuity Group started coverage on Fastly in a research report on Friday, July 17th. They issued a “buy” rating and a $27.00 price objective for the company. Piper Sandler raised their price target on shares of Fastly from $27.00 to $28.00 and gave the stock a “neutral” rating in a research note on Thursday, August 6th. Finally, Bank of America raised their price objective on shares of Fastly from $20.00 to $22.00 and gave the stock an “underperform” rating in a report on Wednesday. One investment analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating, six have given a Hold rating and two have given a Sell rating to the company. According to MarketBeat.com, Fastly currently has a consensus rating of “Hold” and a consensus price target of $25.70.

Insider Activity at Fastly

In related news, CEO Charles Compton, III sold 50,392 shares of the firm’s stock in a transaction that occurred on Monday, September 14th. The shares were sold at an average price of $24.93, for a total value of $1,256,272.56. Following the completion of the transaction, the chief executive officer owned 851,949 shares in the company, valued at $21,239,088.57. This trade represents a 5.58% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Jeffrey Ford sold 45,832 shares of the firm’s stock in a transaction on Thursday, September 17th. The stock was sold at an average price of $24.65, for a total value of $1,129,758.80. Following the transaction, the insider directly owned 249,861 shares of the company’s stock, valued at approximately $6,159,073.65. This represents a 15.50% decrease in their ownership of the stock. 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 749,684 shares of company stock valued at $18,845,838. Company insiders own 4.20% of the company’s stock.

Key Fastly News

Here are the key news stories impacting Fastly this week:

• Positive Sentiment: Fastly’s new AI Firewall, AI Runtime Control and API Security products are designed to secure and manage AI and agentic traffic at the edge. The offerings could expand Fastly’s addressable market and increase demand for its edge cloud platform. Fastly’s AI Security Push Adds Heat Ahead of Investor Day
• Positive Sentiment: Recent operating results remain strong: second-quarter revenue reached a record $183.3 million, up 23% year over year, while non-GAAP EPS of $0.15 exceeded consensus. Fastly also raised or reaffirmed fiscal 2026 expectations at approximately $739 million of revenue and $0.52 of midpoint EPS, indicating improving operating leverage. Fastly: Earnings Are Catching Up With The Valuation
• Neutral Sentiment: Analyst views are mixed. DA Davidson raised its price target to $23 but maintained a neutral rating, implying limited upside relative to recent trading levels. In contrast, a bullish Seeking Alpha contributor increased a target to $34, arguing that earnings growth is beginning to justify Fastly’s valuation.
• Negative Sentiment: The Investor Day triggered profit-taking rather than a fresh buying wave, suggesting that expectations had become elevated after the AI-product announcement and recent rally. Investors may have wanted more aggressive guidance or clearer evidence that the new products will materially accelerate growth. Fastly Just Ripped 138% This Year but It’s Now Falling
• Negative Sentiment: Recent insider sales by Jeffrey Ford, Scott Lovett and CTO Artur Bergman add a cautionary signal, although the transactions were conducted under pre-arranged Rule 10b5-1 plans and therefore do not necessarily indicate a change in management’s outlook.

Hedge Funds Weigh In On Fastly

Hedge funds have recently made changes to their positions in the stock. PNC Financial Services Group Inc. increased its holdings in shares of Fastly by 84.6% in 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 in the last quarter. IFP Advisors Inc lifted its position in shares of Fastly by 1,621.7% during the second quarter. IFP Advisors Inc now owns 1,429 shares of the company’s stock worth $26,000 after purchasing an additional 1,346 shares during the last quarter. Sound Income Strategies LLC bought a new stake in Fastly during the 1st quarter valued at $44,000. EverSource Wealth Advisors LLC lifted its holdings in Fastly by 39.8% during the first quarter. EverSource Wealth Advisors LLC now owns 2,204 shares of the company’s stock worth $64,000 after buying an additional 627 shares during the period. Finally, Integrated Wealth Concepts LLC purchased a new position in Fastly during the 2nd quarter worth $48,000. 79.71% of the stock is currently owned by hedge funds and other institutional investors.

Fastly Price Performance

The company has a quick ratio of 3.36, a current ratio of 3.36 and a debt-to-equity ratio of 0.33. The stock’s 50 day moving average price is $23.35 and its two-hundred day moving average price is $22.54. The stock has a market cap of $4.71 billion, a price-to-earnings ratio of -54.86 and a beta of 0.36.

Fastly (NASDAQ:FSLY) last issued its earnings results on Wednesday, August 5th. The company reported $0.15 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.07 by $0.08. The business had revenue of $183.32 million during the quarter, compared to the consensus estimate of $173.94 million. Fastly had a negative return on equity of 6.31% and a negative net margin of 11.80%.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 EPS for the current fiscal year.

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.