On July 10, 2023, Artur Bergman, the Chief Architect of Fastly Inc (FSLY, Financial), sold 11,163 shares of the company. This move is part of a larger trend of insider selling at Fastly Inc, which we will explore in this article.
Who is Artur Bergman?
Artur Bergman is the Chief Architect at Fastly Inc, a leading edge cloud platform. Bergman has been instrumental in shaping the company's technological direction and has played a significant role in its growth and success. His recent sale of shares is noteworthy and warrants a closer look.
About Fastly Inc
Fastly Inc is a technology company that provides real-time content delivery network services. The company's edge cloud platform enables customers to create great digital experiences quickly, securely, and reliably by processing, serving, and securing its customers' applications as close to their end-users as possible. Fastly's innovative approach has made it a key player in the tech industry.
Insider Sell Analysis
Over the past year, Artur Bergman has sold a total of 643,906 shares and has not purchased any shares. This trend is consistent with the overall insider transaction history of Fastly Inc, which shows zero insider buys and 59 insider sells over the past year.
The high volume of insider selling could be a cause for concern for potential investors. It's important to note that insider selling doesn't always indicate a lack of confidence in the company. Insiders may sell shares for personal reasons or to diversify their investment portfolio. However, the absence of insider buying does raise questions about the company's future prospects.
Fastly Inc's Valuation
On the day of Artur Bergman's recent sale, Fastly Inc's shares were trading at $16.39, giving the company a market cap of $2.252 billion.
With a GuruFocus Value of $53.01, Fastly Inc has a price-to-GF-Value ratio of 0.31. This suggests that the stock is a possible value trap, and investors should think twice before investing. The GF Value is an intrinsic value estimate developed by GuruFocus, based on historical multiples, a GuruFocus adjustment factor, and future business performance estimates from Morningstar analysts.
In conclusion, while Fastly Inc's low price-to-GF-Value ratio may seem attractive, the high volume of insider selling and absence of insider buying could be a red flag. Investors should carefully consider these factors before making an investment decision.
