Fastly’s CEO Sold Shares Worth $1.2 Million. Is the Stock a Buy or a Sell?
On March 11, 2026, Fastly CEO Charles Lacey “Kip” Compton III reported the sale of 49,350 shares of Common Stock in the open market, according to SEC Form 4.
|
Metric |
Price |
|---|---|
|
Shares sold (direct) |
49,350 |
|
Transaction amount |
$1.2 million |
|
Post-trade shares (direct) |
1,163,428 |
|
Post-transaction value (direct ownership) |
$28.0 million |
Transaction amount based on SEC Form 4 reported amount ($25.00); post-trade value based on March 11, 2026 market closing price ($24.05).
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How does this sale compare to Kip Compton’s historic trading career?
The sale of 49,350 shares is greater than the average purchase (13,682 shares) of all the last 13 sales, and exceeds the recent median of 14,870.5 shares since Nov. 26, 2025 to March 11, 2026. -
What part of Compton’s direct holding was affected, and how does this relate to the previous trade?
The sale accounted for 4.07% of Compton’s net assets, above the historical average percentage of 0.99% per sale, indicating a reasonable increase in income but not a complete reduction of the position. -
Did indirect holdings or derivative securities play a role in this activity?
The filing indicates that no shares were sold in indirect accounts or derivative securities; all work directly involved in Common Stock Holdings only. -
What is the context of this trade in relation to Fastly’s recent stock performance?
The deal follows a one-year total return of 265.5% since March 11, 2026, with shares trading at $25.00 and closing at $24.05 on the same day.
|
Metric |
Price |
|---|---|
|
Revenue (TTM) |
$624.08 million |
|
Total revenue (TTM) |
($121.68 million) |
|
Employees |
1,100 |
|
1 year price change |
265.5% |
* 1 year price change calculated from 11 March 2026.
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It rapidly offers an edge cloud platform that includes Compute@Edge, edge security solutions, streaming services, and developer tools, generating revenue primarily through usage-based and subscription fees.
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Using a usage-driven model, it monetizes high-performance web and application delivery, security, and services to optimize digital experiences at the edge of the Internet.
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The company serves digital publishing, media and entertainment, technology, online retail, travel, tourism, and financial services worldwide.
Fastly is a technology company focused on edge cloud infrastructure, enabling fast, secure, and scalable content delivery and application performance. The company uses its scalable platform to address the needs of businesses that require high-speed and secure digital information.
Fastly’s competitive advantage lies in its developer-centric approach and advanced edge computing capabilities, positioning it as a key player in the modern Internet delivery ecosystem.
Fastly CEO Kip Compton’s sale of 49,350 company shares on March 11 is not a cause for concern. The transaction was part of his Rule 10b5-1 trading plan. He accepted the program in August 2025.
The Rule 10b5-1 trading system is often used by insiders to avoid allegations of making trades based on insider information. In addition, Compton retained more than a million shares after the sale, suggesting he is in no rush to dispose of his holdings.
Compton’s transaction came at a good time for the sale. Instant shares hit a 52-week high of $25.79 on March 13, just two days after his sale. Shares are rising because of the company’s good performance.
The immediate revenue reached $624 million in 2025, up from $543.7 million the previous year. Sales growth is due to artificial intelligence.
It immediately ensures that its clients’ websites operate quickly and smoothly for visitors, and is paid based on the amount of data it manages to do so. AI is among visitors these days, scanning websites for information. This increase in site visits fueled Fastly’s sales growth.
But with the company’s stock price rising, its price-to-sales ratio is at a multi-year high, indicating that its stock is expensive. This makes now a good opportunity to sell, but it is not the right time to buy. Expect the stock to drop first.
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Robert Izquierdo has no position in any of the stocks mentioned. The Motley Fool ranks and recommends Fastly. The Motley Fool has a policy of disclosure.
Fastly’s CEO Sold Shares Worth $1.2 Million. Is the Stock a Buy or a Sell? was first published by The Motley Fool
