Fastenal (NASDAQ:FAST) Hits New 1-Year High on Better-Than-Expected Earnings

Fastenal Company (NASDAQ:FAST) reached a new 52-week high during mid-day trading on Tuesday following a better than expected earnings announcement. The company traded as high as $46.04 and last traded at $45.07, with a volume of 18527848 shares. The stock had previously closed at $43.27.

The company reported $0.29 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.28 by $0.01. Fastenal had a return on equity of 31.99% and a net margin of 15.13%. The firm had revenue of $2.08 billion for the quarter, compared to the consensus estimate of $2.07 billion. During the same quarter last year, the business posted $0.25 EPS. The company’s revenue for the quarter was up 8.6% on a year-over-year basis.

Fastenal Cuts Dividend

The company also recently declared a quarterly dividend, which will be paid on Tuesday, August 26th. Shareholders of record on Tuesday, July 29th will be paid a $0.22 dividend. This represents a $0.88 annualized dividend and a dividend yield of 1.95%. The ex-dividend date is Tuesday, July 29th. Fastenal’s dividend payout ratio is 88.00%.

Wall Street Analysts Forecast Growth

A number of analysts recently issued reports on FAST shares. Wolfe Research reaffirmed a “positive” rating on shares of Fastenal in a research report on Monday. Stephens reaffirmed an “equal weight” rating on shares of Fastenal in a research report on Thursday, July 3rd. JPMorgan Chase & Co. lifted their target price on Fastenal from $36.00 to $38.00 and gave the company a “neutral” rating in a research report on Tuesday, May 27th. Stifel Nicolaus set a $82.00 target price on Fastenal in a research report on Thursday, July 3rd. Finally, Morgan Stanley set a $40.00 target price on Fastenal and gave the company an “equal weight” rating in a research report on Thursday, July 3rd. One research analyst has rated the stock with a sell rating, eight have assigned a hold rating and three have assigned a buy rating to the stock. According to data from MarketBeat.com, the company presently has an average rating of “Hold” and a consensus price target of $48.45.

Insider Transactions at Fastenal

In related news, CEO Daniel L. Florness sold 100,000 shares of the stock in a transaction that occurred on Thursday, April 24th. The stock was sold at an average price of $41.06, for a total transaction of $4,106,000.00. Following the sale, the chief executive officer owned 565,036 shares of the company’s stock, valued at $23,200,378.16. This represents a 15.04% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, EVP John Lewis Soderberg sold 32,724 shares of the firm’s stock in a transaction on Friday, May 16th. The stock was sold at an average price of $41.23, for a total value of $1,349,046.90. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 163,200 shares of company stock worth $6,675,975. Insiders own 0.37% of the company’s stock.

Hedge Funds Weigh In On Fastenal

A number of hedge funds have recently added to or reduced their stakes in the stock. Armstrong Advisory Group Inc. lifted its stake in Fastenal by 100.0% during the second quarter. Armstrong Advisory Group Inc. now owns 696 shares of the company’s stock worth $29,000 after purchasing an additional 348 shares during the last quarter. AdvisorNet Financial Inc lifted its stake in Fastenal by 95.0% during the second quarter. AdvisorNet Financial Inc now owns 702 shares of the company’s stock worth $29,000 after purchasing an additional 342 shares during the last quarter. Garde Capital Inc. lifted its stake in Fastenal by 4,900.0% during the second quarter. Garde Capital Inc. now owns 750 shares of the company’s stock worth $32,000 after purchasing an additional 735 shares during the last quarter. 1248 Management LLC bought a new stake in Fastenal during the first quarter worth $36,000. Finally, Horizon Financial Services LLC lifted its stake in Fastenal by 5,330.0% during the first quarter. Horizon Financial Services LLC now owns 543 shares of the company’s stock worth $42,000 after purchasing an additional 533 shares during the last quarter. Institutional investors own 81.38% of the company’s stock.

Fastenal Stock Up 4.2%

The firm has a 50 day simple moving average of $41.57 and a two-hundred day simple moving average of $39.25. The company has a quick ratio of 2.14, a current ratio of 4.28 and a debt-to-equity ratio of 0.03. The stock has a market capitalization of $51.71 billion, a P/E ratio of 44.85, a PEG ratio of 4.01 and a beta of 0.96.

Fastenal Company Profile

Fastenal Company, together with its subsidiaries, engages in the wholesale distribution of industrial and construction supplies in the United States, Canada, Mexico, North America, and internationally. It offers fasteners, and related industrial and construction supplies under the Fastenal name. The company’s fastener products include threaded fasteners, bolts, nuts, screws, studs, and related washers that are used in manufactured products and construction projects, as well as in the maintenance and repair of machines.