Royal Bank of Canada Lowers Stake in Fastenal Company $FAST

Key Points

• Royal Bank of Canada reduced its Fastenal stake by 4.2%, selling 345,306 shares and retaining 7.85 million shares worth approximately $364.1 million. Institutional investors collectively own 81.38% of the company.
• Fastenal reported quarterly revenue of $2.39 billion, up 14.7% year over year and above estimates, while EPS of $0.33 matched expectations. The company also raised its quarterly dividend from $0.24 to $0.26 per share.
• Analyst sentiment remains mixed, with a consensus rating of “Hold” and an average price target of $48.83; shares recently opened at $48.10.

Royal Bank of Canada cut its holdings in Fastenal Company (NASDAQ:FAST - Free Report) by 4.2% during the first quarter, according to the company in its most recent Form 13F filing with the SEC. The firm owned 7,847,992 shares of the company's stock after selling 345,306 shares during the quarter. Royal Bank of Canada owned about 0.68% of Fastenal worth $364,146,000 as of its most recent filing with the SEC.

Other hedge funds have also made changes to their positions in the company. Elyxium Wealth LLC purchased a new position in shares of Fastenal during the fourth quarter worth about $25,000. Palladiem LLC acquired a new stake in Fastenal during the 4th quarter worth approximately $25,000. Evergreen Advisors LLC acquired a new stake in Fastenal during the 1st quarter worth approximately $26,000. MV Capital Management Inc. purchased a new position in shares of Fastenal in the 4th quarter valued at approximately $29,000. Finally, Field & Main Bank acquired a new position in shares of Fastenal in the fourth quarter valued at approximately $30,000. Institutional investors and hedge funds own 81.38% of the company's stock.

Fastenal Price Performance

Fastenal stock opened at $48.10 on Wednesday. The company has a market cap of $55.19 billion, a P/E ratio of 40.76, a price-to-earnings-growth ratio of 2.98 and a beta of 0.72. Fastenal Company has a one year low of $38.97 and a one year high of $50.63. The business has a fifty day moving average of $46.09 and a two-hundred day moving average of $45.48. The company has a debt-to-equity ratio of 0.01, a quick ratio of 2.21 and a current ratio of 4.18.

Fastenal (NASDAQ:FAST - Get Free Report) last announced its quarterly earnings results 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 business had revenue of $2.39 billion during the quarter, compared to the consensus estimate of $2.34 billion. During the same quarter last year, the firm posted $0.29 EPS. The business's revenue was up 14.7% compared to the same quarter last year. As a group, analysts predict that Fastenal Company will post 1.25 earnings per share for the current fiscal year.

Fastenal Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Tuesday, August 25th. Stockholders of record on Tuesday, July 28th will be given a dividend of $0.26 per share. This represents a $1.04 dividend on an annualized basis and a dividend yield of 2.2%. The ex-dividend date is Tuesday, July 28th. This is a positive change from Fastenal's previous quarterly dividend of $0.24. Fastenal's payout ratio is 81.36%.

Analyst Ratings Changes

FAST has been the subject of several recent research reports. Jefferies Financial Group reaffirmed a "buy" rating on shares of Fastenal in a report on Thursday, June 4th. Wolfe Research restated an "underperform" rating and set a $47.00 price objective on shares of Fastenal in a research report on Thursday, July 9th. Rothschild & Co Redburn set a $55.00 target price on shares of Fastenal and gave the stock a "buy" rating in a research note on Monday, July 13th. Barclays lowered their target price on shares of Fastenal from $47.00 to $46.00 and set an "equal weight" rating on the stock in a report on Thursday, July 16th. Finally, DA Davidson reissued a "neutral" rating and set a $46.00 price target on shares of Fastenal in a report on Wednesday, July 15th. Five analysts have rated the stock with a Buy rating, six have given a Hold rating and two have assigned a Sell rating to the company's stock. Based on data from MarketBeat, the stock presently has a consensus rating of "Hold" and an average price target of $48.83.

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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