A Look at Fastly Inc. (FSLY) Shares in the Recent Past Indicates Growth

Fastly Inc. (NYSE: FSLY) stock fell -3.48% on Tuesday to $10.25 against a previous-day closing price of $10.62. With 2.22 million shares changed hands, the volume of the stock remained lighter than its average volume of 3.21 million shares. During the session, the Software – Application company that operates in wider Technology sector, reached to the highest price of $10.89 whereas the lowest price it dropped to was $10.19. The 52-week range on FSLY shows that it touched its highest point at $29.99 and its lowest point at $7.15 during that stretch. It currently has a 1-year price target of $10.45. Beta for the stock currently stands at 1.31.

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Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of FSLY was up-trending over the past week, with a rise of 0.89%, but this was up by 20.87% over a month. Three-month performance surged to 22.46% while six-month performance fell -10.32%. The stock lost -63.52% in the past year, while it has gained 25.15% so far this year. A look at the trailing 12-month EPS for FSLY yields -1.68 with Next year EPS estimates of -0.46. For the next quarter, that number is -0.13. This implies an EPS growth rate of -107.10% for this year and 30.80% for next year.

Float and Shares Shorts:

At present, 122.34 million FSLY shares are outstanding with a float of 111.62 million shares on hand for trading. On Oct 13, 2022, short shares totaled 11.77 million, which was 9.65% higher than short shares on Sep 14, 2022. In addition to Mr. Artur Bergman as the firm’s Co-Founder, Exec. Chairman & Chief Architect, Mr. Ronald W. Kisling serves as its Chief Financial Officer.

Institutional Ownership:

Through their ownership of 67.24% of FSLY’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 33.44% of FSLY, in contrast to 33.26% held by mutual funds. Shares owned by individuals account for 26.22%. As the largest shareholder in FSLY with 8.72% of the stake, The Vanguard Group, Inc. holds 10,720,409 shares worth 10,720,409. A second-largest stockholder of FSLY, BlackRock Fund Advisors, holds 7,304,317 shares, controlling over 5.94% of the firm’s shares. Legal & General Investment Manage is the third largest shareholder in FSLY, holding 6,903,952 shares or 5.61% stake. With a 5.26% stake in FSLY, the Legal & General UCITS ETF PLC – C is the largest stakeholder. A total of 6,463,256 shares are owned by the mutual fund manager. The First Trust Cloud Computing ETF, which owns about 2.81% of FSLY stock, is the second-largest Mutual Fund holder. It holds 3,457,497 shares valued at 28.32 million. Vanguard Total Stock Market Index holds 2.73% of the stake in FSLY, owning 3,361,313 shares worth 27.53 million.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for FSLY since 14 analysts follow the stock currently. There are 2 analysts who recommend BUY ratings, while 3 suggest SELL ratings. Of the remaining analysts, 8 believe that the stock is worth HOLDING, 0 give it an OVERWEIGHT rating, and 1 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With FSLY analysts setting a high price target of $25.00 and a low target of $6.00, the average target price over the next 12 months is $10.45. Based on these targets, FSLY could surge 143.9% to reach the target high and fall by -41.46% to reach the target low. Reaching the average price target will result in a growth of 1.95% from current levels.

EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. FSLY will report FY 2022 earnings on 02/14/2024. Analysts have provided yearly estimates in a range of -$0.63 being high and -$0.67 being low. For FSLY, this leads to a yearly average estimate of -$0.65. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Fastly Inc. surprised analysts by $0.03 when it reported -$0.14 EPS against a consensus estimate of -$0.17. The surprise factor in the prior quarter was -$0.06. Based on analyst estimates, the high estimate for the next quarter is -$0.12 and the low estimate is -$0.15. The average estimate for the next quarter is thus -$0.13.

Summary of Insider Activity:

Insiders traded FSLY stock several times over the past three months with 1 Buys and 9 Sells. In these transactions, 1 shares were bought while 529,826 shares were sold. The number of buy transactions has increased to 20 while that of sell transactions has risen to 40 over the past year. The total number of shares bought during that period was 2,982,531 while 788,831 shares were sold.

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