Fastly (NASDAQ:FSLY) Shares Gap Down on Analyst Downgrade

Fastly, Inc. (NASDAQ:FSLY)’s stock price gapped down before the market opened on Thursday after Citigroup lowered their price target on the stock from $27.00 to $25.00. The stock had previously closed at $21.03, but opened at $17.20. Citigroup currently has a neutral rating on the stock. Fastly shares last traded at $16.0220, with a volume of 2,282,978 shares.

A number of other equities research analysts also recently weighed in on the stock. Raymond James Financial reaffirmed an “outperform” rating and set a $24.00 price objective on shares of Fastly in a research report on Thursday. Oppenheimer upgraded Fastly from a “market perform” rating to an “outperform” rating and set a $35.00 target price for the company in a research note on Friday, October 9th. Canaccord Genuity Group assumed coverage on Fastly in a research report on Friday, July 17th. They set a “buy” rating and a $27.00 price target on the stock. Freedom Broker raised their price target on Fastly from $32.00 to $37.00 and gave the stock a “buy” rating in a report on Wednesday, September 23rd. Finally, Freedom Capital upgraded Fastly to a “strong-buy” rating in a research note on Thursday, July 16th. One equities research analyst has rated the stock with a Strong Buy rating, seven have issued a Buy rating, five have issued a Hold rating and two have assigned a Sell rating to the company’s stock. According to MarketBeat, the company has an average rating of “Hold” and a consensus price target of $26.17.

Insider Buying and Selling

In related news, insider Jeffrey Ford sold 45,832 shares of the company’s stock in a transaction dated Thursday, September 17th. The shares were sold at an average price of $24.65, for a total value of $1,129,758.80. Following the completion of the sale, the insider owned 249,861 shares of the company’s stock, valued at $6,159,073.65. This represents a 15.50% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Scott Lovett sold 41,815 shares of the stock in a transaction dated Thursday, September 17th. The shares were sold at an average price of $24.64, for a total transaction of $1,030,321.60. Following the completion of the transaction, the insider owned 1,281,583 shares of the company’s stock, valued at $31,578,205.12. This represents a 3.16% 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. In the last 90 days, insiders have sold 1,323,893 shares of company stock valued at $35,452,889. Company insiders own 4.20% of the company’s stock.

Key Stories Impacting Fastly

Here are the key news stories impacting Fastly this week:

• Positive Sentiment: Fastly reported record Q3 revenue of $190.2 million, up about 20% year over year, and adjusted EPS of $0.17, topping estimates. It raised its 2026 outlook, with management citing security growth, wider adoption of multiple products, AI-related demand and a large customer commitment as drivers. Earnings Beat Might Change The Case For Investing in Fastly
• Positive Sentiment: Management projected Q4 revenue of $198 million to $202 million and full-year free cash flow of $50 million to $60 million, adding to the evidence of improving execution and profitability. Fastly anticipates 2026 revenue and free cash flow outlook
• Neutral Sentiment: Despite the results, Fastly shares faced a sharp post-earnings selloff, with coverage pointing to expected growth deceleration and concerns about performance across business segments. That helps explain why investors have not fully rewarded the earnings beat. Fastly plunges on Q3 results as analyst highlights segment deceleration
• Negative Sentiment: Several firms lowered their price targets while keeping neutral or equivalent ratings: Citigroup cut its target to $25 from $27, Piper Sandler to $24 from $28, and RBC to $19 from $25. The cuts signal more cautious expectations, even though the targets remain above the referenced share price. Citigroup recommendations Piper Sandler recommendations RBC cuts Fastly price target
• Negative Sentiment: Fastly also announced that Go-to-Market President Scott Lovett plans to retire in 2027 and that it will search for a Chief Revenue Officer, creating a leadership transition investors will monitor. Fastly announces go-to-market leadership transition

Institutional Trading of Fastly

Several hedge funds have recently modified their holdings of FSLY. Kestra Advisory Services LLC boosted its position in shares of Fastly by 83.4% in the 3rd quarter. Kestra Advisory Services LLC now owns 27,858 shares of the company’s stock worth $715,000 after purchasing an additional 12,669 shares during the last quarter. Greenleaf Trust bought a new position in shares of Fastly in the 3rd quarter valued at about $236,000. Mirae Asset Global Investments Co. Ltd. bought a new stake in Fastly in the third quarter valued at approximately $2,149,000. D.A. Davidson & CO. acquired a new stake in shares of Fastly during the 3rd quarter worth about $1,388,000. Finally, Capelight Capital Asset Management LP acquired a new position in shares of Fastly in the third quarter valued at approximately $1,540,000. Institutional investors and hedge funds own 79.71% of the company’s stock.

Fastly Stock Up 3.1%

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 firm has a 50-day simple moving average of $23.97 and a two-hundred day simple moving average of $21.52. The stock has a market cap of $2.52 billion, a P/E ratio of -39.62 and a beta of 0.22.

Fastly (NASDAQ:FSLY) last released its earnings results on Wednesday, November 4th. The company reported $0.17 EPS for the quarter, beating the consensus estimate of $0.12 by $0.05. The firm had revenue of $190.19 million for the quarter, compared to analyst estimates of $187.82 million. Fastly had a negative net margin of 11.80% and a negative return on equity of 6.31%. Equities research analysts expect that Fastly, Inc. will post -0.29 earnings per share for the current fiscal year.

About Fastly

Fastly, Inc is a technology company that provides an edge cloud platform designed to help businesses deliver, secure, and optimize digital applications and content. Its platform processes data and applications closer to end users, supporting faster performance, improved reliability, and greater control over internet-based services.

Fastly’s products and services include content delivery, application programming interface (API) acceleration, edge computing, application and API security, bot management, distributed denial-of-service protection, and observability tools.