Compass Capital Management Inc. Takes $58.77 Million Position in Fastenal Company $FAST

Key Points

• Compass Capital Management acquired 1.22 million Fastenal shares worth approximately $58.8 million, making FAST its sixth-largest holding and representing about 3.5% of its portfolio.
• Fastenal reported quarterly EPS of $0.33, in line with estimates, while revenue rose 14.7% year over year to $2.39 billion. The company also raised its quarterly dividend from $0.24 to $0.26 per share.
• FAST shares opened at $51.02, near their 52-week high, while analysts maintained a consensus “Hold” rating with an average price target of $49.17; institutional investors own 81.38% of the stock.

Compass Capital Management Inc. acquired a new position in Fastenal Company (NASDAQ:FAST - Free Report) during the 2nd quarter, according to the company in its most recent disclosure with the SEC. The fund acquired 1,223,702 shares of the company's stock, valued at approximately $58,774,000. Fastenal comprises approximately 3.5% of Compass Capital Management Inc.'s investment portfolio, making the stock its 6th largest holding. Compass Capital Management Inc. owned about 0.11% of Fastenal at the end of the most recent reporting period.

A number of other hedge funds and other institutional investors have also made changes to their positions in FAST. Integrated Wealth Concepts LLC lifted its stake in Fastenal by 2.4% during the first quarter. Integrated Wealth Concepts LLC now owns 6,276 shares of the company's stock valued at $487,000 after purchasing an additional 147 shares during the last quarter. Tandem Investment Advisors Inc. boosted its holdings in Fastenal by 1.8% during the first quarter. Tandem Investment Advisors Inc. now owns 12,356 shares of the company's stock worth $573,000 after buying an additional 224 shares in the last quarter. Sittner & Nelson LLC grew its position in Fastenal by 0.3% in the fourth quarter. Sittner & Nelson LLC now owns 68,495 shares of the company's stock worth $2,749,000 after buying an additional 226 shares during the last quarter. Sound Income Strategies LLC grew its position in Fastenal by 12.9% in the first quarter. Sound Income Strategies LLC now owns 2,025 shares of the company's stock worth $94,000 after buying an additional 232 shares during the last quarter. Finally, L2 Asset Management LLC increased its holdings in shares of Fastenal by 4.8% in the third quarter. L2 Asset Management LLC now owns 5,389 shares of the company's stock valued at $264,000 after buying an additional 248 shares in the last quarter. 81.38% of the stock is currently owned by institutional investors.

Fastenal Price Performance

FAST stock opened at $51.02 on Monday. Fastenal Company has a 52-week low of $38.97 and a 52-week high of $52.92. The company's 50 day simple moving average is $47.47 and its 200-day simple moving average is $46.12. 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 firm has a market capitalization of $58.55 billion, a P/E ratio of 43.24, a P/E/G ratio of 3.18 and a beta of 0.72.

Fastenal (NASDAQ:FAST - Get Free Report) last posted its quarterly earnings data on Tuesday, July 14th. The company reported $0.33 EPS for the quarter, hitting analysts' consensus estimates of $0.33. Fastenal had a net margin of 15.45% and a return on equity of 34.03%. The firm had revenue of $2.39 billion during the quarter, compared to analyst estimates of $2.34 billion. During the same quarter last year, the business posted $0.29 EPS. The company's revenue was up 14.7% on a year-over-year basis. As a group, equities research analysts anticipate that Fastenal Company will post 1.26 EPS for the current year.

Fastenal Increases Dividend

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

Analyst Ratings Changes

A number of brokerages have recently commented on FAST. DA Davidson reiterated a "neutral" rating and set a $46.00 price objective on shares of Fastenal in a research report on Wednesday, July 15th. Robert W. Baird set a $54.00 target price on Fastenal in a report on Friday, August 7th. Wolfe Research restated an "underperform" rating and issued a $47.00 target price on shares of Fastenal in a report on Thursday, July 9th. Barclays cut their target price on Fastenal from $47.00 to $46.00 and set an "equal weight" rating on the stock in a research report on Thursday, July 16th. Finally, Morgan Stanley upped their target price on Fastenal from $48.00 to $52.00 and gave the company an "equal weight" rating in a report on Thursday, July 16th. Five analysts have rated the stock with a Buy rating, six have assigned a Hold rating and two have given a Sell rating to the company's stock. According to data from MarketBeat.com, the company currently has a consensus rating of "Hold" and a consensus price target of $49.17.

Insider Buying and Selling at Fastenal

In other news, Director Michael J. Ancius sold 3,000 shares of the firm's stock in a transaction 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 completion of the sale, the director owned 58,690 shares of the company's stock, valued at $2,875,810. This trade represents a 4.86% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at this link. Also, Director Rita J. Heise sold 34,964 shares of Fastenal stock in a transaction on Wednesday, August 5th. The shares were sold at an average price of $50.05, for a total value of $1,749,948.20. Following the transaction, the director owned 20,000 shares in the company, valued at $1,001,000. This represents a 63.61% decrease in their position. The SEC filing for this sale provides additional information. Company insiders own 0.28% of the company's stock.

About Fastenal

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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