Fastenal Company (NASDAQ:FAST) Given Consensus Recommendation of "Hold" by Brokerages

Key Points

• Analysts have a consensus “Hold” rating on Fastenal, with six buys, five holds and two sells among 13 firms. The average 12-month price target is $49.17, near the stock’s reported opening price of $49.60.
• Fastenal reported quarterly earnings of $0.33 per share, matching estimates, while revenue of $2.39 billion exceeded expectations and rose 14.7% year over year.
• The company raised its quarterly dividend to $0.26 per share, equivalent to a 2.1% annual yield, though its payout ratio is relatively high at 88.14%. Two directors also recently sold company shares.

Fastenal Company (NASDAQ:FAST - Get Free Report) has received an average rating of "Hold" from the thirteen research firms that are currently covering the firm, Marketbeat reports. Two investment analysts have rated the stock with a sell recommendation, five have assigned a hold recommendation and six have assigned a buy recommendation to the company. The average 1 year price target among brokerages that have updated their coverage on the stock in the last year is $49.1667.

FAST has been the subject of several research reports. Wolfe Research reissued an "underperform" rating and issued a $47.00 price objective on shares of Fastenal in a research note on Thursday, July 9th. DA Davidson reaffirmed a "neutral" rating and set a $46.00 target price on shares of Fastenal in a research note on Wednesday, July 15th. Robert W. Baird set a $54.00 price target on shares of Fastenal in a report on Friday, August 7th. Weiss Ratings upgraded Fastenal from a "buy (b-)" rating to a "buy (b)" rating in a research note on Wednesday, August 26th. Finally, Rothschild & Co Redburn set a $55.00 price objective on Fastenal and gave the company a "buy" rating in a report on Monday, July 13th.

Fastenal Price Performance

Fastenal stock opened at $49.60 on Monday. The company has a debt-to-equity ratio of 0.01, a quick ratio of 2.21 and a current ratio of 4.18. Fastenal has a 52 week low of $38.97 and a 52 week high of $52.92. The stock has a market capitalization of $56.92 billion, a P/E ratio of 42.03, a price-to-earnings-growth ratio of 3.09 and a beta of 0.72. The stock has a fifty day moving average of $48.71 and a 200-day moving average of $46.59.

Fastenal (NASDAQ:FAST - Get Free Report) last released its quarterly earnings data on Tuesday, July 14th. The company reported $0.33 earnings per share for the quarter, meeting the consensus estimate of $0.33. The business had revenue of $2.39 billion for the quarter, compared to analyst estimates of $2.34 billion. Fastenal had a return on equity of 34.03% and a net margin of 15.45%.Fastenal's revenue was up 14.7% compared to the same quarter last year. During the same period last year, the firm posted $0.29 earnings per share. On average, sell-side analysts expect that Fastenal will post 1.26 earnings per share for the current fiscal year.

Fastenal Increases Dividend

The company also recently declared a quarterly dividend, which was paid on Tuesday, August 25th. Stockholders of record on Tuesday, July 28th were paid a dividend of $0.26 per share. The ex-dividend date of this dividend was Tuesday, July 28th. This is a positive change from Fastenal's previous quarterly dividend of $0.24. This represents a $1.04 dividend on an annualized basis and a dividend yield of 2.1%. Fastenal's payout ratio is 88.14%.

Insider Activity

In other Fastenal news, Director Rita Heise sold 34,964 shares of the business's stock in a transaction that occurred on Wednesday, August 5th. The shares were sold at an average price of $50.05, for a total transaction of $1,749,948.20. Following the sale, the director directly owned 20,000 shares of the company's stock, valued at $1,001,000. The trade was a 63.61% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, Director Michael J. Ancius sold 3,000 shares of the company's stock in a transaction that occurred on Tuesday, July 28th. The shares were sold at an average price of $49.00, for a total transaction of $147,000.00. Following the completion of the transaction, the director owned 58,690 shares of the company's stock, valued at approximately $2,875,810. This trade represents a 4.86% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders own 0.28% of the company's stock.

Institutional Trading of Fastenal

Several institutional investors have recently modified their holdings of FAST. Elyxium Wealth LLC acquired a new position in Fastenal during the 4th quarter worth about $25,000. Palladiem LLC bought a new position in shares of Fastenal during the fourth quarter worth about $25,000. Evergreen Advisors LLC acquired a new position in shares of Fastenal in the first quarter worth approximately $26,000. Mowery & Schoenfeld Wealth Management LLC acquired a new position in shares of Fastenal in the second quarter worth approximately $26,000. Finally, MV Capital Management Inc. bought a new stake in Fastenal in the fourth quarter valued at approximately $29,000. Institutional investors own 81.38% of the company's stock.

Fastenal Company Profile

Fastenal NASDAQ: FAST is a wholesale distributor of industrial and construction supplies, best known for its broad assortment of fasteners such as bolts, nuts, screws and anchors. Founded in Winona, Minnesota, Fastenal has grown from a regional supplier into a national and international distributor serving a wide range of end markets, including manufacturing, construction, maintenance, repair and operations (MRO), and government customers. The company is publicly traded and operates through a network of locally staffed branches combined with national distribution capabilities.

Product offerings extend beyond fasteners to include tools, safety and personal protective equipment, power transmission components, cutting and welding supplies, janitorial and material handling items, and other industrial consumables.

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