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Fastly, Inc. (NYSE:FSLY) CEO Todd Nightingale recently sold 35,509 shares of the company’s Class A common stock, according to a Form 4 filing with the Securities and Exchange Commission. The transaction, which occurred on February 19, 2025, was executed at a price of $8.04 per share, totaling $285,492. The sale comes as Fastly’s stock has declined 17% year-to-date, though InvestingPro analysis suggests the stock is currently undervalued.
Following the sale, Nightingale retains ownership of 1,553,301 shares in the company. The shares were sold to satisfy tax obligations related to the vesting of previously granted Restricted Stock Units. The company maintains a strong liquidity position with a current ratio of 4.21, indicating ample assets to meet short-term obligations. For deeper insights into Fastly’s financial health and additional analysis, including 6 more key ProTips, visit InvestingPro.
In other recent news, Fastly Inc . reported its fourth-quarter 2024 earnings, revealing a larger-than-expected loss per share, though revenue slightly exceeded forecasts. The company’s revenue for the quarter reached $140.6 million, surpassing expectations of $138.29 million, marking a 2% year-over-year growth. Despite the revenue beat, Fastly’s earnings per share were a loss of $0.03, missing the forecasted loss of $0.0034, leading to a 19% drop in the stock during after-hours trading. Analysts from DA Davidson, Citi, and Piper Sandler have maintained a Neutral rating on Fastly’s stock, with price targets adjusted to $7.50 and $9, reflecting cautious outlooks on the company’s financial prospects.
Citi’s analyst noted a modest revenue growth, primarily outside Fastly’s top 10 customers, while Piper Sandler highlighted mixed outcomes in Fastly’s recent quarter, with a resurgence in its security offerings. Fastly’s earnings report also indicated significant margin dilution for 2025, with revenues forecasted to be roughly $7 million ahead, but EBIT and free cash flow approximately $10 million and $15 million below expectations, respectively. The company is prioritizing growth investments, particularly in international markets, despite concerns over reduced margins and cash burn. Fastly’s strategic focus on expanding in the EMEA and APAC regions is expected to increase capital expenditures and carries the risk of gross margin compression.
Additionally, Fastly’s guidance for 2025 suggests moderate revenue growth, excluding potential contributions from TikTok US operations due to uncertainties. The company aims to improve its net retention rate and expects a better pricing environment in the latter half of 2025. Analysts have expressed the need for Fastly to demonstrate tangible progress and results to justify confidence in its growth strategy.
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