On September 20, 2023, Brett Shirk, the Executive Vice President and Chief Revenue Officer (CRO) of Fastly Inc (FSLY, Financial), sold 5,690 shares of the company. This move is part of a series of transactions made by the insider over the past year, which have seen a total of 128,890 shares sold and no shares purchased.
Fastly Inc is a leading provider of edge cloud services, enabling developers to build, secure, and deliver digital experiences at the edge of the internet. The company's platform is designed to take advantage of the modern internet, to be programmable, and to support agile software development with unmatched visibility and minimal latency.
The insider's recent sell-off has raised eyebrows among investors and market watchers, prompting a closer look at the company's stock performance and insider trading trends.
As shown in the insider trend image above, there have been 71 insider sells and no insider buys over the past year. This trend could be interpreted as a lack of confidence in the company's future performance by its insiders. However, it's important to note that insider selling can be driven by various factors, including personal financial needs or portfolio diversification, and does not necessarily reflect a negative outlook on the company.
On the day of the insider's recent sell, Fastly Inc's shares were trading at $19.69, giving the company a market cap of $2.39 billion. Despite the insider's sell-off, the stock appears to be significantly undervalued based on its GuruFocus Value of $28.21, with a price-to-GF-Value ratio of 0.7.
The GF Value is a proprietary estimate of intrinsic value developed by GuruFocus, based on historical multiples, a GuruFocus adjustment factor, and future business performance estimates from Morningstar analysts. The fact that Fastly Inc's stock is trading below its GF Value could suggest that it is currently undervalued, offering a potential opportunity for investors.
In conclusion, while the insider's recent sell-off may raise concerns, the stock's current valuation and the company's solid business model suggest that Fastly Inc could still be an attractive investment opportunity. As always, potential investors should conduct their own thorough research before making any investment decisions.