Fastenal (NASDAQ:FAST) Reaches New 12-Month High - Should You Buy?

Key Points

• Fastenal's stock reached a new 52-week high of $49.26 during trading, reflecting a significant rise from its previous closing price of $48.45.
• The company reported a quarterly EPS of $0.29, exceeding analyst expectations, with revenue rising by 8.6% year-over-year.
• A recent analysis revealed a consensus rating of "Hold" for Fastenal, with target prices varying among brokerages, but a general upward trend noted in investor sentiment.

Fastenal Company (NASDAQ:FAST - Get Free Report) shares hit a new 52-week high on Thursday . The stock traded as high as $49.26 and last traded at $49.21, with a volume of 4833547 shares changing hands. The stock had previously closed at $48.45.

Wall Street Analysts Forecast Growth

A number of equities research analysts have commented on FAST shares. Wolfe Research reaffirmed a "positive" rating on shares of Fastenal in a research report on Monday, July 14th. Loop Capital restated a "hold" rating on shares of Fastenal in a research note on Tuesday, July 15th. JPMorgan Chase & Co. lifted their target price on shares of Fastenal from $38.00 to $41.00 and gave the company a "neutral" rating in a research note on Tuesday, July 15th. Baird R W upgraded shares of Fastenal from a "hold" rating to a "strong-buy" rating in a report on Thursday, August 7th. Finally, Morgan Stanley set a $40.00 price target on shares of Fastenal and gave the company an "equal weight" rating in a report on Thursday, July 3rd. One equities research analyst has rated the stock with a sell rating, seven have issued a hold rating, four have assigned a buy rating and one has issued a strong buy rating to the company. Based on data from MarketBeat.com, the stock presently has an average rating of "Hold" and a consensus price target of $46.36.

Fastenal Stock Performance

The business's fifty day moving average price is $44.55 and its two-hundred day moving average price is $40.93. The company has a debt-to-equity ratio of 0.03, a quick ratio of 2.12 and a current ratio of 4.22. The stock has a market capitalization of $56.30 billion, a P/E ratio of 47.19, a P/E/G ratio of 4.45 and a beta of 0.95.

Fastenal (NASDAQ:FAST - Get Free Report) last posted its earnings results on Monday, July 14th. The company reported $0.29 earnings per share for the quarter, topping analysts' consensus estimates of $0.28 by $0.01. The firm had revenue of $2.08 billion for the quarter, compared to the consensus estimate of $2.07 billion. Fastenal had a net margin of 15.30% and a return on equity of 32.33%. The business's quarterly revenue was up 8.6% on a year-over-year basis. During the same period in the previous year, the firm posted $0.25 EPS. As a group, sell-side analysts forecast that Fastenal Company will post 2.15 earnings per share for the current year.

Fastenal Cuts Dividend

The company also recently declared a quarterly dividend, which will be paid on Tuesday, August 26th. Investors of record on Tuesday, July 29th will be issued a dividend of $0.22 per share. This represents a $0.88 annualized dividend and a yield of 1.8%. The ex-dividend date is Tuesday, July 29th. Fastenal's dividend payout ratio is presently 84.62%.

Insider Activity at Fastenal

In related news, CFO Sheryl Ann Lisowski sold 21,052 shares of the company's stock in a transaction dated Thursday, July 17th. The shares were sold at an average price of $45.21, for a total transaction of $951,760.92. Following the transaction, the chief financial officer directly owned 10,192 shares in the company, valued at approximately $460,780.32. This represents a 67.38% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, insider Jeffery Michael Watts sold 48,724 shares of the company's stock in a transaction dated Friday, August 8th. The shares were sold at an average price of $48.05, for a total transaction of $2,341,188.20. Following the transaction, the insider owned 11,880 shares in the company, valued at $570,834. The trade was a 80.40% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 104,388 shares of company stock worth $4,955,363. Insiders own 0.37% of the company's stock.

Institutional Investors Weigh In On Fastenal

Several large investors have recently added to or reduced their stakes in the stock. 1248 Management LLC purchased a new stake in shares of Fastenal in the 1st quarter worth approximately $36,000. Horizon Financial Services LLC lifted its position in shares of Fastenal by 5,330.0% in the 1st 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 period. Riverview Trust Co lifted its position in shares of Fastenal by 100.0% in the 2nd quarter. Riverview Trust Co now owns 584 shares of the company's stock worth $25,000 after purchasing an additional 292 shares during the period. Itau Unibanco Holding S.A. lifted its position in shares of Fastenal by 481.9% in the 4th quarter. Itau Unibanco Holding S.A. now owns 611 shares of the company's stock worth $44,000 after purchasing an additional 506 shares during the period. Finally, Zions Bancorporation National Association UT purchased a new stake in shares of Fastenal in the 1st quarter worth approximately $49,000. 81.38% of the stock is owned by hedge funds and other institutional investors.

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.