Fastenal (NASDAQ:FAST) Shares Gap Down After Earnings Miss

Key Points

• Fastenal shares gapped down from $45.78 to $43.60 after reporting disappointing earnings, with earnings per share at $0.29, missing estimates by $0.01.
• The company announced a quarterly dividend of $0.22 to be paid on November 25th, representing an annualized dividend of $0.88 and a yield of 2.0%.
• Fastenal's stock has an average rating of "Hold" from analysts and a price target averaging $47.41, reflecting cautious optimism amidst recent performance.

Fastenal Company (NASDAQ:FAST - Get Free Report)'s stock price gapped down prior to trading on Monday following a dissappointing earnings announcement. The stock had previously closed at $45.78, but opened at $43.60. Fastenal shares last traded at $43.49, with a volume of 3,400,626 shares.

The company reported $0.29 earnings per share for the quarter, missing analysts' consensus estimates of $0.30 by ($0.01). Fastenal had a net margin of 15.30% and a return on equity of 32.33%. The company had revenue of $2.13 billion during the quarter, compared to analyst estimates of $2.13 billion. During the same quarter last year, the business earned $0.26 EPS. The company's revenue for the quarter was up 11.7% compared to the same quarter last year.

Fastenal Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, November 25th. Stockholders of record on Tuesday, October 28th will be given a $0.22 dividend. This represents a $0.88 annualized dividend and a dividend yield of 2.0%. The ex-dividend date of this dividend is Tuesday, October 28th. Fastenal's dividend payout ratio (DPR) is 84.62%.

Analysts Set New Price Targets

A number of brokerages have commented on FAST. Stifel Nicolaus set a $82.00 price objective on Fastenal in a research report on Thursday, July 3rd. JPMorgan Chase & Co. raised their price objective on Fastenal from $41.00 to $46.00 and gave the stock a "neutral" rating in a research report on Thursday, September 4th. Northcoast Research initiated coverage on shares of Fastenal in a report on Thursday, August 21st. They set a "neutral" rating for the company. Morgan Stanley set a $40.00 price target on shares of Fastenal and gave the stock an "equal weight" rating in a report on Thursday, July 3rd. Finally, Wolfe Research restated a "positive" rating on shares of Fastenal in a report on Monday, July 14th. One investment analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating, nine have assigned a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, Fastenal presently has an average rating of "Hold" and an average price target of $47.41.

Insider Transactions at Fastenal

In other Fastenal news, insider Jeffery Michael Watts sold 48,724 shares of Fastenal stock in a transaction that occurred on Friday, August 8th. The shares were sold at an average price of $48.05, for a total value of $2,341,188.20. Following the completion of the sale, the insider directly 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 transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, CFO Sheryl Ann Lisowski sold 21,052 shares of Fastenal stock in a transaction that occurred on Thursday, July 17th. The shares were sold at an average price of $45.21, for a total transaction of $951,760.92. Following the completion of the sale, the chief financial officer owned 10,192 shares of the company's stock, valued at $460,780.32. This trade represents a 67.38% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 111,230 shares of company stock valued at $5,288,364 in the last quarter. Corporate insiders own 0.37% of the company's stock.

Institutional Investors Weigh In On Fastenal

Several institutional investors and hedge funds have recently added to or reduced their stakes in FAST. 1248 Management LLC acquired a new stake in shares of Fastenal in the first quarter worth $36,000. Horizon Financial Services LLC lifted its position in Fastenal by 5,330.0% during the 1st quarter. Horizon Financial Services LLC now owns 543 shares of the company's stock worth $42,000 after acquiring an additional 533 shares during the last quarter. Riverview Trust Co lifted its position in Fastenal by 100.0% during the 2nd quarter. Riverview Trust Co now owns 584 shares of the company's stock worth $25,000 after acquiring an additional 292 shares during the last quarter. Zions Bancorporation National Association UT acquired a new position in shares of Fastenal during the 1st quarter worth about $49,000. Finally, Private Wealth Management Group LLC lifted its position in shares of Fastenal by 111.9% during the 2nd quarter. Private Wealth Management Group LLC now owns 642 shares of the company's stock worth $27,000 after purchasing an additional 339 shares during the last quarter. 81.38% of the stock is currently owned by institutional investors and hedge funds.

Fastenal Stock Down 5.9%

The company has a current ratio of 4.22, a quick ratio of 2.12 and a debt-to-equity ratio of 0.03. The firm has a market cap of $49.43 billion, a price-to-earnings ratio of 41.67, a PEG ratio of 4.15 and a beta of 0.94. The firm has a 50-day moving average of $48.26 and a two-hundred day moving average of $43.94.

About Fastenal

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.

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