Insider Selling at Fastly: A Signal or a Symptom?

The stock market has always been a theater of signals and symptoms, and Fastly (FSLY) is the latest act in this drama. Over the past two years, Fastly's insiders—executives, directors, , . CEO and CFO Ronald Kisling have also joined the exodus, raising the question: Is this a red flag, or just a routine financial move?

The Data: A Torrent of Sales

Let's start with the numbers. From 2023 to 2025, , , 2025, adding to a pattern of aggressive divestmentFastly, Inc. (FSLY) Recent Insider Transactions^[2]. , , 2025, further underscores the trendFastly (FSLY) Insider Trading Activity 2025^[1]. These aren't small, sporadic sales—they're systematic, large-scale moves that demand attention.

, 2025FSLY Insider Trading | Fastly Buys and Sells^[3]. Analysts have slashed their price targets, , . The question is whether the insider selling is a signal of this decline—or a symptom of personal financial planning.

Academic Insights: Can Insiders Predict the Future?

The academic literature offers a nuanced answer. Studies dating back to 1968 show that insider transactions can predict stock performance, particularly when they reflect “high-conviction” tradesProfiting From Insider Transactions: A Review Of The Academic Research^[5]. For example, Lakonishok and Lee (1998) found that insider purchases—especially unplanned ones—were more informative than sales, as they often signaled confidence in near-term fundamentalsProfiting From Insider Transactions: A Review Of The Academic Research^[5]. Conversely, insider selling is less reliably predictive, as it can reflect , diversification strategies, or even regulatory compliance (e.g., Rule 10b5-1 trading plans).

Yet, the data isn't entirely dismissive of selling. Seyhun's 1980s research revealed that aggregate insider selling can correlate with future market returns, particularly in small-cap stocksProfiting From Insider Transactions: A Review Of The Academic Research^[5]. Fastly, , fits this category. However, the company's recent insider sales have occurred alongside a broader industry slump in cloud infrastructure stocks, complicating the narrative.

Correlation vs. Causation: The Fastly Case

Let's connect the dots. , coinciding with a wave of insider sales in late 2023Fastly (FSLY) Insider Trading Activity 2025^[1]. By mid-2024, the price had collapsed, and insiders continued selling. For instance, , 2025, . Does this suggest insiders foresaw the decline? Possibly—but not necessarily.

Consider the alternative: Fastly's executives may be harvesting gains from a once-rosy investment. Bergman, a co-founder, . Selling to diversify or fund personal goals is a classic move, especially for . As one 2023 study noted, .

The Bigger Picture: What Investors Should Do

Here's where Cramer-style pragmatism kicks in. If you're a Fastly shareholder, don't panic—but don't ignore the data either. The insider selling is a factor, not a verdict. Pair it with the fundamentals: Fastly's revenue growth has slowed, competition from AWS and Cloudflare is intensifying, and its margin pressures remain unresolved. Analysts' “Hold” ratings reflect these challengesFastly (FSLY) Stock Forecast & Analyst Price Targets^[4].

However, . If you're bullish on cloud infrastructure's long-term potential, . But if you're , .

Conclusion: Signal or Symptom?

In the end, Fastly's insider selling is both. It's a signal that executives are capitalizing on their paper wealth, but it's also a symptom of a stock that's lost its luster. Academic research tells us insiders can sometimes predict the future, but they're not infallible—and their motives aren't always transparent.

For investors, the takeaway is clear: Use insider transactions as one tool in your toolkit, not a crystal ball. Fastly's story isn't over, but the writing on the wall—both in terms of sales and stock price—demands a closer look.