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

Posted by Geri Gentry on Aug 8th, 2026

Fastly, Inc. (NYSE:FSLY – Get Free Report)’s stock price gapped down prior to trading on Thursday following insider selling activity. The stock had previously closed at $26.03, but opened at $22.73. Fastly shares last traded at $23.5980, with a volume of 1,816,794 shares trading hands.

Specifically, CEO Charles Lacey Compton III sold 14,868 shares of the firm’s stock in a transaction dated Tuesday, August 4th. The stock was sold at an average price of $25.00, for a total transaction of $371,700.00. Following the transaction, the chief executive officer owned 1,030,592 shares of the company’s stock, valued at approximately $25,764,800. This trade represents a 1.42% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Analyst Upgrades and Downgrades

Several research firms have recently weighed in on FSLY. Royal Bank Of Canada boosted their target price on Fastly from $22.00 to $28.00 and gave the company a “sector perform” rating in a report on Thursday. Canaccord Genuity Group started coverage on Fastly in a research note on Friday, July 17th. They set a “buy” rating and a $27.00 price target on the stock. Evercore reaffirmed an “outperform” rating on shares of Fastly in a research report on Thursday. Piper Sandler boosted their price objective on Fastly from $27.00 to $28.00 and gave the company a “neutral” rating in a research note on Thursday. Finally, Raymond James Financial reissued an “outperform” rating and issued a $29.00 price objective on shares of Fastly in a report on Thursday. One research analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating, six have issued a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, Fastly has an average rating of “Hold” and an average price target of $25.33.

Get Our Latest Analysis on Fastly

Key Stories Impacting Fastly

Here are the key news stories impacting Fastly this week:

Positive Sentiment: Fastly reported record second-quarter revenue of $183.3 million, up 23% year over year. Non-GAAP earnings of $0.15 per share more than doubled the $0.07 consensus estimate, while security revenue surged 43% on demand related to AI traffic protection. Gross margin also reached a record 65.8%. Fastly Q2 Earnings Beat as Security Growth Spurs 2026 Outlook Hike
Positive Sentiment: The edge-cloud company raised its 2026 outlook, including adjusted earnings guidance of $0.50 to $0.54 per share. Third-quarter revenue guidance of $184 million to $190 million and adjusted EPS guidance of $0.11 to $0.13 also exceeded expectations, supporting the view that Fastly’s improved profitability and security growth are continuing. Fastly Announces Second Quarter 2026 Financial Results
Positive Sentiment: Analysts responded by raising price targets: KeyBanc lifted its target from $27 to $30 while maintaining an overweight rating, and RBC increased its target from $22 to $28 with a sector-perform rating. The revisions reinforce expectations for further execution in security and AI-related traffic services.
Neutral Sentiment: Fastly’s results highlighted strong security and AI-driven demand, but customer concentration remains a risk. A small number of large customers could make revenue growth more volatile if spending patterns change.
Negative Sentiment: Despite the earnings beat and higher outlook, the stock initially declined after the report, suggesting investors may have expected an even stronger result. Following a substantial prior-year rally, valuation appears demanding and leaves less room for execution or guidance disappointments. Fastly Stock Looks Overvalued Despite a Strong Return
Negative Sentiment: CEO Charles Lacey Compton III sold 14,868 shares for approximately $371,700, reducing his direct ownership by 1.42%. The sale was made under a pre-arranged Rule 10b5-1 plan, which limits its significance, but it may still create modest short-term selling pressure. Fastly CEO Insider Sale

Fastly Price Performance

The company’s 50 day moving average is $19.64 and its 200 day moving average is $20.01. The stock has a market cap of $3.59 billion, a price-to-earnings ratio of -23.92 and a beta of 0.34. The company has a debt-to-equity ratio of 0.16, a current ratio of 1.46 and a quick ratio of 1.46.

Institutional Inflows and Outflows

Large investors have recently made changes to their positions in the business. PNC Financial Services Group Inc. increased its position in Fastly by 84.6% during 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. Caitong International Asset Management Co. Ltd acquired a new position in shares of Fastly in the 4th quarter valued at approximately $41,000. Align Financial LLC bought a new position in Fastly during the 4th quarter valued at $41,000. Sound Income Strategies LLC acquired a new position in Fastly in the first quarter worth about $44,000. Finally, Quarry LP acquired a new position in shares of Fastly in the 3rd quarter worth approximately $49,000. Hedge funds and other institutional investors own 79.71% of the company’s stock.

About Fastly

(Get Free Report)

Fastly, Inc operates an edge cloud platform designed to accelerate, secure and enable modern digital experiences. The company offers a suite of services including a content delivery network (CDN), edge compute, load balancing, web application firewall (WAF) and DDoS protection. Fastly’s real-time architecture allows customers to seamlessly deploy software logic at the network edge, reducing latency by bringing applications and content closer to end users.

Founded in 2011 by Artur Bergman, Fastly has evolved from a pure-play CDN provider into a comprehensive edge cloud platform.