BlackRock Inc. Invests $5.11 Billion in Fastenal Company $FAST

Key Points

• BlackRock acquired 106.3 million Fastenal shares worth approximately $5.11 billion, giving it a 9.26% stake. Institutional investors and hedge funds collectively own 81.38% of the company.
• Fastenal reported quarterly revenue of $2.39 billion, up 14.7% year over year, while earnings of $0.33 per share matched analyst expectations. The company also raised its quarterly dividend from $0.24 to $0.26, implying a 2.0% annual yield.
• Analyst sentiment remains mixed, with an overall “Hold” rating and an average price target of $49.17. Meanwhile, two directors recently sold shares, and insiders own just 0.28% of the stock.

BlackRock Inc. purchased a new stake in Fastenal Company (NASDAQ:FAST - Free Report) in the 2nd quarter, according to the company in its most recent Form 13F filing with the SEC. The institutional investor purchased 106,297,179 shares of the company's stock, valued at approximately $5,105,454,000. BlackRock Inc. owned 9.26% of Fastenal at the end of the most recent reporting period.

Other hedge funds and other institutional investors have also recently modified their holdings of the company. Evergreen Advisors LLC purchased a new position in Fastenal in the first quarter valued at $26,000. Palladiem LLC purchased a new position in shares of Fastenal in the 4th quarter valued at $25,000. Elyxium Wealth LLC purchased a new position in shares of Fastenal in the 4th quarter valued at $25,000. MV Capital Management Inc. acquired a new stake in Fastenal during the 4th quarter worth $29,000. Finally, Measured Wealth Private Client Group LLC purchased a new stake in Fastenal in the third quarter valued at $36,000. 81.38% of the stock is owned by institutional investors and hedge funds.

Fastenal Price Performance

Fastenal stock opened at $51.27 on Wednesday. The company has a debt-to-equity ratio of 0.01, a current ratio of 4.18 and a quick ratio of 2.21. The business has a 50 day simple moving average of $47.67 and a 200-day simple moving average of $46.22. Fastenal Company has a 12 month low of $38.97 and a 12 month high of $52.92. The stock has a market capitalization of $58.83 billion, a PE ratio of 43.45, a price-to-earnings-growth ratio of 3.18 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, meeting the consensus estimate of $0.33. Fastenal had a net margin of 15.45% and a return on equity of 34.03%. The business had revenue of $2.39 billion for the quarter, compared to the consensus estimate of $2.34 billion. During the same quarter in the previous year, the firm earned $0.29 earnings per share. The business's quarterly revenue was up 14.7% compared to the same quarter last year. Equities analysts predict that Fastenal Company will post 1.26 earnings per share for the current year.

Fastenal Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, August 25th. Shareholders of record on Tuesday, July 28th will be issued a $0.26 dividend. The ex-dividend date of this dividend is Tuesday, July 28th. This represents a $1.04 dividend on an annualized basis and a yield of 2.0%. This is a boost from Fastenal's previous quarterly dividend of $0.24. Fastenal's dividend payout ratio is presently 88.14%.

Insider Buying and Selling

In other Fastenal news, Director Rita J. Heise sold 34,964 shares of the business's stock in a transaction that occurred on Wednesday, August 5th. The stock was sold at an average price of $50.05, for a total transaction of $1,749,948.20. Following the transaction, the director owned 20,000 shares in the company, valued at approximately $1,001,000. The trade was a 63.61% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, Director Michael J. Ancius sold 3,000 shares of the stock in a transaction that occurred on Tuesday, July 28th. The stock was sold at an average price of $49.00, for a total value of $147,000.00. Following the transaction, the director directly owned 58,690 shares of the company's stock, valued at approximately $2,875,810. This trade represents a 4.86% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. 0.28% of the stock is currently owned by insiders.

Wall Street Analysts Forecast Growth

A number of analysts recently issued reports on FAST shares. Rothschild & Co Redburn set a $55.00 target price on Fastenal and gave the company a "buy" rating in a research report on Monday, July 13th. DA Davidson reaffirmed a "neutral" rating and set a $46.00 price target on shares of Fastenal in a research report on Wednesday, July 15th. Morgan Stanley boosted their price objective on Fastenal from $48.00 to $52.00 and gave the company an "equal weight" rating in a research note on Thursday, July 16th. Robert W. Baird set a $54.00 price target on shares of Fastenal in a research note on Friday, August 7th. Finally, Jefferies Financial Group reissued a "buy" rating on shares of Fastenal in a research report on Thursday, June 4th. Five equities research 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 data from MarketBeat.com, the company currently has an average rating of "Hold" and an average price target of $49.17.

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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