Fastly, Inc.'s (NYSE:FSLY) Chief Financial Officer, Ronald W. Kisling, has sold a total of 12,000 shares of the company's Class A Common Stock, according to a recent filing with the Securities and Exchange Commission. The transaction, which took place on April 1, 2024, amounted to over $155,000, with shares sold at a weighted average price of $12.92 each.
The shares were sold in multiple transactions with prices ranging from $12.59 to $13.11. These sales were conducted under a Rule 10b5-1 trading plan, which allows company insiders to set up a predetermined plan to sell stocks at a time when they are not in possession of material non-public information. This plan had been adopted by Kisling on November 20, 2023.
Following the sale, Kisling's remaining direct ownership in Fastly amounts to 640,222 shares of Class A Common Stock. The filing noted that the shares sold were previously contributed by Kisling to the Ronald Kisling Living Trust, indicating a change from direct to indirect ownership.
Investors often monitor insider sales as they can provide insights into an executive's perspective on the company's current valuation and future prospects. However, sales under a 10b5-1 trading plan are typically viewed as less indicative of insider sentiment, given their prearranged nature.
Fastly, headquartered in San Francisco, California, operates within the prepackaged software industry and is known for its edge cloud platform, which enables developers to run, secure, and deliver digital experiences at the edge of the internet.
InvestingPro Insights
Fastly, Inc. (NYSE:FSLY) has been navigating a challenging market environment, as reflected in its recent stock performance and financial metrics. According to InvestingPro data, Fastly's market capitalization stands at approximately $1.7 billion. The company's price to earnings (P/E) ratio, a key indicator of market expectations about future earnings, is currently negative at -9.88, based on the last twelve months as of Q4 2023. This suggests that the company is not currently profitable, a sentiment echoed by analysts who do not anticipate Fastly will be profitable this year.
Despite these challenges, Fastly has demonstrated a solid revenue growth of 16.93% over the last twelve months as of Q4 2023, with a gross profit margin of 52.64%. This indicates that while the company is facing bottom-line pressures, it is still managing to expand its top-line revenues and maintain a strong gross profit margin. An InvestingPro Tip highlights that Fastly's liquid assets exceed its short-term obligations, which underscores the company's ability to meet its immediate financial liabilities.
However, investors should be aware of the stock's recent trajectory. Fastly's stock has taken a considerable hit over the last six months, with a price total return of -27.06%. This could be a point of concern or potential opportunity, depending on investor sentiment and market conditions. Moreover, the fact that Fastly does not pay a dividend may influence the investment decisions of those seeking regular income from their stock holdings.
For those looking to delve deeper into Fastly's financial health and stock performance, InvestingPro offers additional insights and metrics. There are currently 10 analysts who have revised their earnings estimates downwards for the upcoming period, and the stock's Relative Strength Index (RSI) suggests that it is in oversold territory. For more comprehensive analysis and to access all available InvestingPro Tips for Fastly, investors can visit InvestingPro. Remember to use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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