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

Posted by George Bondi on Nov 7th, 2026

Fastly, Inc. (NASDAQ:FSLY – Get Free Report)’s share price gapped down prior to trading 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 trading hands.

A number of other research firms have also recently issued reports on FSLY. KeyCorp reissued an “overweight” rating and set a $30.00 price objective on shares of Fastly in a research report on Friday, September 18th. Freedom Broker upped their target price on Fastly from $32.00 to $37.00 and gave the stock a “buy” rating in a research report on Wednesday, September 23rd. Raymond James Financial reiterated an “outperform” rating and set a $24.00 price target on shares of Fastly in a report on Thursday. DA Davidson lifted their target price on shares of Fastly from $21.00 to $23.00 and gave the company a “neutral” rating in a research note on Wednesday, September 23rd. Finally, Piper Sandler reissued a “neutral” rating and issued a $24.00 target price (down from $28.00) on shares of Fastly in a research report on Thursday. One research analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating, five have given a Hold rating and two have given a Sell rating to the stock. Based on data from MarketBeat.com, the stock currently has an average rating of “Hold” and a consensus target price of $26.17.

View Our Latest Stock Report on Fastly

Insider Buying and Selling at Fastly

In other Fastly news, CEO Charles Compton, III sold 8,941 shares of Fastly stock in a transaction on Monday, October 26th. The stock was sold at an average price of $24.98, for a total value of $223,346.18. Following the completion of the transaction, the chief executive officer owned 822,559 shares in the company, valued at approximately $20,547,523.82. The trade was a 1.08% decrease in their position. 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. Also, CTO Artur Bergman sold 37,039 shares of the business’s stock in a transaction on Monday, October 26th. The stock was sold at an average price of $25.48, for a total value of $943,753.72. Following the completion of the transaction, the chief technology officer directly owned 1,024,239 shares in the company, valued at approximately $26,097,609.72. This represents a 3.49% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 1,323,893 shares of company stock worth $35,452,889 in the last three months. Insiders own 4.20% of the company’s stock.

More Fastly News

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

A number of hedge funds and other institutional investors have recently made changes to their positions in FSLY. First Trust Advisors LP lifted its stake in shares of Fastly by 100.5% during the 1st quarter. First Trust Advisors LP now owns 7,031,952 shares of the company’s stock worth $204,349,000 after buying an additional 3,524,763 shares during the last quarter. Dimensional Fund Advisors LP grew its holdings in shares of Fastly by 0.4% during the 1st quarter. Dimensional Fund Advisors LP now owns 2,741,549 shares of the company’s stock worth $79,620,000 after purchasing an additional 11,022 shares in the last quarter. Bank of America Corp DE increased its holdings in Fastly by 120.0% in the 1st quarter. Bank of America Corp DE now owns 1,269,369 shares of the company’s stock valued at $36,888,000 after buying an additional 692,459 shares during the period. Wellington Management Group LLP bought a new position in Fastly in the second quarter valued at approximately $8,696,000. Finally, Swiss National Bank raised its holdings in shares of Fastly by 1.8% during the 1st quarter. Swiss National Bank now owns 280,900 shares of the company’s stock worth $8,163,000 after buying an additional 4,900 shares in the last quarter. 79.71% of the stock is currently owned by institutional investors and hedge funds.

Fastly Stock Performance

The stock has a market cap of $2.52 billion, a price-to-earnings ratio of -39.62 and a beta of 0.22. 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 company has a 50 day simple moving average of $23.97 and a 200 day simple moving average of $21.52.

Fastly (NASDAQ:FSLY – Get Free Report) last issued its earnings results on Wednesday, November 4th. The company reported $0.17 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.12 by $0.05. Fastly had a negative return on equity of 6.31% and a negative net margin of 11.80%. The business had revenue of $190.19 million during the quarter, compared to analysts’ expectations of $187.82 million. As a group, equities research analysts forecast that Fastly, Inc. will post -0.29 EPS for the current year.

Fastly Company Profile

(Get Free Report)

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.