Fastenal (NASDAQ:FAST) Stock Price Expected to Rise, Morgan Stanley Analyst Says

Key Points

• Morgan Stanley raised its price target on Fastenal from $48 to $52, implying about 11.6% upside from the prior close, while keeping an equal-weight rating.
• Fastenal’s latest quarter showed solid revenue growth, with sales up about 14.7% year over year to $2.39 billion and earnings per share matching expectations at $0.33.
• Analyst sentiment remains mixed: the broader consensus is still Hold, with an average target price of $48.83, though some firms remain bullish while others see limited upside or have cut targets.

Fastenal (NASDAQ:FAST - Get Free Report) had its price objective boosted by equities researchers at Morgan Stanley from $48.00 to $52.00 in a report issued on Thursday,Benzinga reports. The firm presently has an "equal weight" rating on the stock. Morgan Stanley's price objective would indicate a potential upside of 11.56% from the company's previous close.

A number of other analysts also recently weighed in on the stock. Robert W. Baird decreased their price target on shares of Fastenal from $52.00 to $50.00 and set an "outperform" rating for the company in a research report on Tuesday, April 14th. Jefferies Financial Group restated a "buy" rating on shares of Fastenal in a research note on Thursday, June 4th. Wolfe Research reiterated an "underperform" rating and set a $47.00 price target on shares of Fastenal in a research report on Thursday, July 9th. DA Davidson reaffirmed a "neutral" rating and set a $46.00 target price on shares of Fastenal in a research report on Wednesday. Finally, Rothschild & Co Redburn set a $55.00 price target on shares of Fastenal and gave the company a "buy" rating in a research report on Monday. Five analysts have rated the stock with a Buy rating, six have assigned a Hold rating and two have assigned a Sell rating to the company's stock. According to MarketBeat, Fastenal currently has a consensus rating of "Hold" and an average target price of $48.83.

Fastenal Stock Up 2.8%

Shares of Fastenal stock opened at $46.61 on Thursday. The company has a fifty day moving average price of $45.64 and a 200 day moving average price of $45.14. The company has a current ratio of 4.18, a quick ratio of 2.34 and a debt-to-equity ratio of 0.01. Fastenal has a twelve month low of $38.97 and a twelve month high of $50.63. The stock has a market cap of $53.51 billion, a price-to-earnings ratio of 39.28, a price-to-earnings-growth ratio of 2.90 and a beta of 0.72.

Fastenal (NASDAQ:FAST - Get Free Report) last issued its earnings results on Tuesday, July 14th. The company reported $0.33 earnings per share for the quarter, hitting the consensus estimate of $0.33. The company had revenue of $2.39 billion during the quarter, compared to the consensus estimate of $2.34 billion. Fastenal had a return on equity of 34.03% and a net margin of 15.45%.The company's revenue was up 14.7% compared to the same quarter last year. During the same quarter in the prior year, the business earned $0.29 earnings per share. Equities research analysts forecast that Fastenal will post 1.24 earnings per share for the current fiscal year.

Hedge Funds Weigh In On Fastenal

Several large investors have recently added to or reduced their stakes in the company. State Street Corp boosted its position in shares of Fastenal by 1.2% during the 4th quarter. State Street Corp now owns 54,734,674 shares of the company's stock valued at $2,196,502,000 after acquiring an additional 631,889 shares in the last quarter. Charles Schwab Investment Management Inc. lifted its position in shares of Fastenal by 2.0% during the 4th quarter. Charles Schwab Investment Management Inc. now owns 47,297,047 shares of the company's stock worth $1,898,031,000 after buying an additional 919,158 shares during the period. Geode Capital Management LLC boosted its stake in Fastenal by 1.9% in the 4th quarter. Geode Capital Management LLC now owns 37,699,836 shares of the company's stock valued at $1,508,216,000 after buying an additional 685,047 shares in the last quarter. Invesco Ltd. lifted its holdings in shares of Fastenal by 14.0% during the third quarter. Invesco Ltd. now owns 18,215,875 shares of the company's stock valued at $893,307,000 after acquiring an additional 2,242,116 shares during the period. Finally, Bank of America Corp DE boosted its stake in shares of Fastenal by 12.0% in the 1st quarter. Bank of America Corp DE now owns 16,292,425 shares of the company's stock valued at $755,969,000 after purchasing an additional 1,744,193 shares in the last quarter. Institutional investors and hedge funds own 81.38% of the company's stock.

Key Headlines Impacting Fastenal

Here are the key news stories impacting Fastenal this week:

• Positive Sentiment: Fastenal’s second-quarter results showed solid top-line momentum, with revenue rising about 15% year over year and sales topping estimates, supported by stronger pricing, contract customer growth, and digital sales gains.
• Positive Sentiment: Several analysts remain constructive, including Morgan Stanley maintaining a Hold rating with a $48 price target and William Blair reiterating a Buy on sales momentum and expected second-half operating leverage. Article title
• Neutral Sentiment: DA Davidson reaffirmed its Neutral rating and set a $46 price target, while Barclays lowered its target from $47 to $46 and kept an Equal Weight rating, suggesting only limited upside from current levels. Article title
• Neutral Sentiment: Coverage around the earnings call described the quarter as strong but incremental, indicating that the market may be waiting for a clearer acceleration in margins and earnings before rewarding the stock more fully.
• Negative Sentiment: Investors appeared concerned that earnings only matched estimates and gross margin narrowed, which can overshadow healthy revenue growth and pressure valuation-sensitive shares like FAST. Article title

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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