Fastenal (NASDAQ:FAST) Reaches New 52-Week High - Here's Why

Key Points

• Fastenal shares reached a new 52-week high of $50.80, trading about 1.2% higher and above both their 50-day and 200-day moving averages.
• The company reported quarterly revenue of $2.39 billion, ahead of analyst expectations, while EPS of $0.33 matched estimates; revenue grew 14.7% year over year.
• Fastenal increased its quarterly dividend from $0.24 to $0.26, bringing the annualized payout to $1.04 and the dividend yield to approximately 2.1%. Analysts remain broadly neutral, with a consensus “Hold” rating and a $48.83 target price.

Fastenal Company (NASDAQ:FAST - Get Free Report)'s share price hit a new 52-week high during trading on Thursday . The company traded as high as $50.80 and last traded at $50.7780, with a volume of 16350 shares changing hands. The stock had previously closed at $49.99.

Wall Street Analysts Forecast Growth

A number of equities research analysts recently issued reports on FAST shares. Morgan Stanley boosted their target price on shares of Fastenal from $48.00 to $52.00 and gave the company an "equal weight" rating in a report on Thursday, July 16th. JPMorgan Chase & Co. raised their price target on Fastenal from $46.00 to $47.00 and gave the stock a "neutral" rating in a report on Thursday, April 9th. Robert W. Baird reduced their price target on Fastenal from $52.00 to $50.00 and set an "outperform" rating for the company in a research report on Tuesday, April 14th. Barclays decreased their target price on Fastenal from $47.00 to $46.00 and set an "equal weight" rating for the company in a research note on Thursday, July 16th. Finally, Jefferies Financial Group reissued a "buy" rating on shares of Fastenal in a research note on Thursday, June 4th. Five research analysts have rated the stock with a Buy rating, six have given a Hold rating and two have given a Sell rating to the stock. According to MarketBeat, the company currently has an average rating of "Hold" and a consensus target price of $48.83.

Fastenal Trading Up 1.2%

The firm has a market capitalization of $58.05 billion, a price-to-earnings ratio of 42.76, a P/E/G ratio of 3.11 and a beta of 0.72. The business has a 50-day moving average of $46.60 and a two-hundred day moving average of $45.73. The company has a quick ratio of 2.21, a current ratio of 4.18 and a debt-to-equity ratio of 0.01.

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

Fastenal Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Tuesday, August 25th. Stockholders of record on Tuesday, July 28th will be paid a $0.26 dividend. The ex-dividend date is Tuesday, July 28th. This represents a $1.04 annualized dividend and a dividend yield of 2.1%. This is a boost from Fastenal's previous quarterly dividend of $0.24. Fastenal's dividend payout ratio is presently 88.14%.

Insider Activity

In related news, Director Michael J. Ancius sold 3,000 shares of Fastenal stock in a transaction dated 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 directly owned 58,690 shares of the company's stock, valued at $2,875,810. This trade represents a 4.86% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. 0.28% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Institutional investors have recently modified their holdings of the company. Oppenheimer Asset Management Inc. bought a new stake in Fastenal during the 2nd quarter worth approximately $10,845,000. Bryn Mawr Trust Advisors LLC bought a new stake in shares of Fastenal during the second quarter worth $6,026,000. Hardy Reed LLC acquired a new stake in shares of Fastenal in the second quarter valued at $636,000. Fiduciary Financial Group LLC raised its holdings in shares of Fastenal by 7.6% in the second quarter. Fiduciary Financial Group LLC now owns 8,038 shares of the company's stock valued at $386,000 after buying an additional 568 shares during the last quarter. Finally, Focus Financial Network Inc. lifted its position in Fastenal by 5.1% during the 2nd quarter. Focus Financial Network Inc. now owns 67,730 shares of the company's stock worth $3,253,000 after buying an additional 3,275 shares in the last quarter. 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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