On May 26, 2023, Swiss National Bank revealed that it increased its stake in Fastly, Inc. (NYSE:FSLY) by 2.8% during Q4 of the previous year. According to the company’s latest Form 13F filing with the Securities & Exchange Commission (SEC), Swiss National Bank now owns 265,100 shares of FSLY after buying an additional 7,100 shares. As per its most recent SEC filing, this stake accounts for roughly 0.22% of Fastly’s total worth which amounts to $2,171,000.
Fastly is a renowned provider of real-time content delivery network services that specializes in offering edge compute and delivery solutions alongside load balancing and image optimization services. Moreover, it provides managed edge delivery and video on demand solutions too. Artur Bergman, Tyler McMullen, Simon Wistow and Gil Penchina founded Fastly in March of 2011, and the company has its headquarters based out of San Francisco.
NYSE:FSLY began trading at $14.78 this Friday with a market capitalization figure of $1.88 billion. The firm has demonstrated a price-to-earnings ratio of -10.56 alongside a beta of 1.31; over the past year, FSLY had achieved its low point at $7.15 and hit its highest mark at $18.08.
The business boasts both a fifty-day simple moving average value of $15.01 and a two-hundred-day simple moving average value of $12.17 while having debt-to-equity ratios amounting to 0.75 alongside current ratios equaling and quick ratios sitting at an identical level – both being five-point-two-eight respectively.
With Swiss National Bank increasing their stake in Fastly through adding an additional number of shares to their holdings last quarter – despite global markets potentially becoming more cautious – investors must remain vigilant to the potential changes in FSLY’s share price.
Fastly: Institutional Investor Interest and Positive Analyst Reports
Fastly, a San Francisco-based content delivery network (CDN) provider, has seen increased interest from hedge funds and other institutional investors. The Arizona State Retirement System increased its stake in Fastly by 4.8% to 30,983 shares worth $254k during the fourth quarter of last year and Fox Run Management purchased a new shareholding in the company worth approximately $217k. Interestingly, CEO Todd Nightingale sold 74,084 shares of the firm’s stock for a total value of $975,686.28 on May 16th causing pressure on the stock price to fall marginally. Insiders have reportedly sold a total of 259,872 shares valued at $3.76m over the past three months contributing to a decline in value and sentiment for Fastly’s stocks.
Despite insider activity putting some downward pressure on the stocks, several analysts have issued optimistic reports that offer investors a positive outlook on Fastly. One notable report came from DA Davidson who upgraded the company’s rating from neutral to buy with an increased target price from $8.50 to $17 per share in mid February this year. Meanwhile, Morgan Stanley raised Fastly from an “underweight” rating to an “equal weight” rating with an increased price target of $18 in late April this year.
The institutional investor interest in Fastly combined with positive reports by Wall Street analysts marks an exciting time for one of Silicon Valley’s most sophisticated content delivery companies while insiders selling could increase suspicion among investors already wondering about unexpected risks.
Fastly has been making waves as one of the most progressive CDN providers in Silicon Valley that uses custom-purpose accelerator chips called Application-Specific Integrated Circuits (ASICs) for their purposes as opposed to generic computer processors such as those produced by Intel and AMD. The new architecture allows them to optimize computing power specifically towards their CDN rather than having general-purpose processors responsible for all computing tasks. Fastly is one of the few companies that have succeeded in producing ASIC applications at scale, creating an edge for them against rivals such as Amazon Web Services and Google.
As of now, a consensus rating by Bloomberg.com has dubbed Fastly with a “Hold” rating with a target price of $16 per share.
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