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

Key Points

• Analyst sentiment is cautious: Fastenal has a consensus rating of "Hold" from 13 analysts, with 2 sells, 6 holds, and 5 buys. The average 12-month price target is about $48.83.
• Latest earnings were solid: The company reported $0.33 EPS, matching expectations, while revenue of $2.39 billion came in above estimates and rose 14.7% year over year.
• Fastenal raised its dividend: The quarterly payout increased from $0.24 to $0.26 per share, implying an annualized dividend of $1.04 and a yield of about 2.3%.

Fastenal Company (NASDAQ:FAST - Get Free Report) has been given an average rating of "Hold" by the thirteen research firms that are presently covering the firm, Marketbeat reports. Two analysts have rated the stock with a sell recommendation, six have issued a hold recommendation and five have given a buy recommendation to the company. The average 12-month target price among brokers that have covered the stock in the last year is $48.8333.

FAST has been the subject of several recent research reports. Rothschild & Co Redburn set a $55.00 target price on shares of Fastenal and gave the company a "buy" rating in a report on Monday, July 13th. DA Davidson reaffirmed a "neutral" rating and issued a $46.00 price target on shares of Fastenal in a report on Wednesday. Weiss Ratings reiterated a "buy (b)" rating on shares of Fastenal in a research report on Wednesday, July 8th. JPMorgan Chase & Co. increased their price target on shares of Fastenal from $46.00 to $47.00 and gave the company a "neutral" rating in a research report on Thursday, April 9th. Finally, Robert W. Baird dropped their price objective on shares of Fastenal from $52.00 to $50.00 and set an "outperform" rating for the company in a research note on Tuesday, April 14th.

Hedge Funds Weigh In On Fastenal

Institutional investors have recently made changes to their positions in the stock. Integrated Wealth Concepts LLC boosted its holdings in shares of Fastenal by 2.4% in the 1st quarter. Integrated Wealth Concepts LLC now owns 6,276 shares of the company's stock valued at $487,000 after purchasing an additional 147 shares during the last quarter. Tandem Investment Advisors Inc. increased its holdings in shares of Fastenal by 1.8% during the 1st quarter. Tandem Investment Advisors Inc. now owns 12,356 shares of the company's stock worth $573,000 after buying an additional 224 shares during the last quarter. Sittner & Nelson LLC increased its holdings in shares of Fastenal by 0.3% during the 4th quarter. Sittner & Nelson LLC now owns 68,495 shares of the company's stock worth $2,749,000 after buying an additional 226 shares during the last quarter. Founders Capital Management LLC raised its position in shares of Fastenal by 2.2% in the 4th quarter. Founders Capital Management LLC now owns 10,428 shares of the company's stock worth $418,000 after buying an additional 228 shares during the period. Finally, Sound Income Strategies LLC raised its position in shares of Fastenal by 12.9% in the 1st quarter. Sound Income Strategies LLC now owns 2,025 shares of the company's stock worth $94,000 after buying an additional 232 shares during the period. 81.38% of the stock is owned by institutional investors and hedge funds.

Fastenal Stock Down 2.5%

Fastenal stock opened at $45.49 on Friday. Fastenal has a fifty-two week low of $38.97 and a fifty-two week high of $50.63. The firm has a market capitalization of $52.22 billion, a price-to-earnings ratio of 38.55, a price-to-earnings-growth ratio of 2.86 and a beta of 0.72. The stock's fifty day moving average is $45.71 and its two-hundred day moving average is $45.18. The company has a debt-to-equity ratio of 0.01, a quick ratio of 2.34 and a current ratio of 4.18.

Fastenal (NASDAQ:FAST - Get Free Report) last released its quarterly earnings results on Tuesday, July 14th. The company reported $0.33 earnings per share (EPS) for the quarter, hitting the consensus estimate of $0.33. Fastenal had a return on equity of 34.03% and a net margin of 15.45%.The business had revenue of $2.39 billion during the quarter, compared to the consensus estimate of $2.34 billion. During the same quarter in the previous year, the company posted $0.29 EPS. The business's revenue was up 14.7% on a year-over-year basis. Analysts predict that Fastenal will post 1.25 EPS for the current fiscal year.

Fastenal Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Tuesday, August 25th. Shareholders of record on Tuesday, July 28th will be issued a dividend of $0.26 per share. This is a boost from Fastenal's previous quarterly dividend of $0.24. The ex-dividend date is Tuesday, July 28th. This represents a $1.04 dividend on an annualized basis and a yield of 2.3%. Fastenal's payout ratio is currently 81.36%.

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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