On September 11, 2023, Artur Bergman, the Chief Architect of Fastly Inc (FSLY, Financial), sold 21,875 shares of the company. This move is part of a series of transactions Bergman has made over the past year, selling a total of 758,267 shares and purchasing none.
Artur Bergman has been a significant figure in Fastly Inc, a company that provides real-time content delivery network services. Fastly'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. Bergman's role as Chief Architect has been instrumental in shaping the company's technological direction.
The insider's recent sell-off raises questions about the company's current valuation and future prospects. To understand the implications of this move, it's essential to analyze the relationship between insider trading and stock price.
The insider transaction history for Fastly Inc shows a trend of more sells than buys over the past year. There have been 68 insider sells and 0 insider buys. This trend could indicate that insiders believe the company's stock is overvalued, prompting them to sell their shares.
On the day of the insider's recent sell, Fastly Inc's shares were trading at $23.36, giving the company a market cap of $2.89 billion. However, the GuruFocus Value of the stock stands at $28.12, suggesting that the stock is modestly undervalued.
The GF Value is an intrinsic value estimate developed by GuruFocus. It is calculated based on historical multiples that the stock has traded at, a GuruFocus adjustment factor based on the company's past returns and growth, and future estimates of business performance from Morningstar analysts. With a price-to-GF-Value ratio of 0.83, Fastly Inc's stock appears to be modestly undervalued.
In conclusion, while the insider's recent sell-off might raise concerns, the stock's current valuation suggests potential for growth. Investors should keep a close eye on Fastly Inc's performance and any future insider trading activity.
