Fastly (NASDAQ:FSLY) Shares Gap Down After Insider Selling

Fastly, Inc. (NASDAQ:FSLY) gapped down before the market opened on Thursday following insider selling activity. The stock had previously closed at $29.65, but opened at $27.80. Fastly shares last traded at $27.5140, with a volume of 4,636,045 shares traded.

Specifically, CTO Artur Bergman sold 27,900 shares of the firm’s stock in a transaction dated Tuesday, September 22nd. The stock was sold at an average price of $27.82, for a total transaction of $776,178.00. Following the completion of the sale, the chief technology officer directly owned 1,517,960 shares in the company, valued at $42,229,647.20. This trade represents a 1.80% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CTO Artur Bergman sold 49,146 shares of Fastly stock in a transaction that occurred on Monday, September 21st. The stock was sold at an average price of $27.38, for a total value of $1,345,617.48. Following the completion of the transaction, the chief technology officer owned 1,545,860 shares of the company’s stock, valued at approximately $42,325,646.80. The trade was a 3.08% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In other news, CTO Artur Bergman sold 2,200 shares of the firm’s stock in a transaction dated Thursday, September 17th. The shares were sold at an average price of $25.30, for a total value of $55,660.00. Following the transaction, the chief technology officer directly owned 1,595,006 shares in the company, valued at approximately $40,353,651.80. This trade represents a 0.14% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Analyst Upgrades and Downgrades

A number of research analysts recently issued reports on the company. Freedom Broker boosted their price objective on Fastly from $32.00 to $37.00 and gave the company a “buy” rating in a research report on Wednesday. Canaccord Genuity Group assumed coverage on Fastly in a report on Friday, July 17th. They issued a “buy” rating and a $27.00 price objective for the company. Piper Sandler raised their target price on Fastly from $27.00 to $28.00 and gave the company a “neutral” rating in a research report on Thursday, August 6th. DA Davidson lifted their target price on Fastly from $21.00 to $23.00 and gave the company a “neutral” rating in a research note on Wednesday. Finally, Royal Bank Of Canada reiterated a “sector perform” rating and issued a $25.00 target price on shares of Fastly in a research report on Wednesday. One equities research analyst has rated the stock with a Strong Buy rating, six have issued a Buy rating, six have assigned a Hold rating and two have assigned a Sell rating to the company’s stock. Based on data from MarketBeat, the company presently has a consensus rating of “Hold” and an average price target of $26.73.

Key Headlines Impacting Fastly

Here are the key news stories impacting Fastly this week:

• Positive Sentiment: Fastly outlined a target of approximately 14%–21% annual revenue growth over the next three years, supported by demand for edge cloud, security and AI services. The company’s AI-focused outlook helped drive renewed investor interest. Fastly growth target article
• Positive Sentiment: Fastly introduced or highlighted products including its AI Firewall, AI Runtime Control and API Security offerings. These tools are intended to protect AI applications and manage agentic traffic at the edge, potentially broadening Fastly’s addressable market beyond content delivery networks. Fastly AI Firewall article
• Positive Sentiment: Freedom Broker raised its price target to $37 from $32 and maintained a buy rating. Separately, unusually heavy call-option activity—33,432 calls purchased, about 187% above typical volume—suggested strong bullish speculation.
• Positive Sentiment: Recent fundamentals provide support for the rally: Fastly reported quarterly revenue of $183.3 million and non-GAAP EPS of $0.15, both ahead of consensus. Fiscal 2026 guidance implies approximately $739 million in revenue and midpoint EPS of $0.52. Fastly earnings analysis
• Neutral Sentiment: Analyst opinion is mixed. DA Davidson raised its target to $23 but retained a neutral rating, while BofA said Fastly’s edge-platform expansion is promising but that the size and timing of the AI opportunity remain uncertain.
• Negative Sentiment: CTO Artur Bergman sold 77,046 shares for roughly $2.1 million across September 21–22. The sales were conducted under a pre-arranged Rule 10b5-1 plan and he still owns more than 1.5 million shares, limiting the bearish significance, but insider selling may weigh on sentiment after the stock’s sharp advance.

Fastly Stock Down 6.9%

The company has a debt-to-equity ratio of 0.33, a current ratio of 3.36 and a quick ratio of 3.36. The stock has a market capitalization of $4.40 billion, a P/E ratio of -52.11 and a beta of 0.36. The stock’s fifty day moving average is $23.55 and its two-hundred day moving average is $22.60.

Fastly (NASDAQ:FSLY) last posted its quarterly earnings results on Wednesday, August 5th. The company reported $0.15 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.07 by $0.08. The company had revenue of $183.32 million for the quarter, compared to analysts’ expectations 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. As a group, research analysts predict that Fastly, Inc. will post -0.29 earnings per share for the current fiscal year.

Institutional Trading of Fastly

Several institutional investors and hedge funds have recently bought and sold shares of FSLY. Bank of America Corp DE increased its position in shares of Fastly by 120.0% in the first quarter. Bank of America Corp DE now owns 1,269,369 shares of the company’s stock worth $36,888,000 after acquiring an additional 692,459 shares in the last quarter. Convergence Investment Partners LLC acquired a new position in Fastly in the 1st quarter worth approximately $1,951,000. Range Financial Group LLC purchased a new position in Fastly during the 1st quarter worth approximately $1,667,000. Castleark Management LLC acquired a new stake in Fastly during the 1st quarter valued at $5,164,000. Finally, Wellington Management Group LLP purchased a new stake in shares of Fastly in the second quarter valued at $8,696,000. Institutional investors and hedge funds own 79.71% of the company’s stock.

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.