The Manufacturers Life Insurance Company Makes New Investment in Fastenal Company $FAST

Key Points

• The Manufacturers Life Insurance Company initiated a position in Fastenal by purchasing 739,046 shares worth approximately $35.5 million, while institutional investors collectively own 81.38% of the stock.
• Fastenal reported quarterly earnings of $0.33 per share, in line with estimates, while revenue rose 14.7% year over year to $2.39 billion. The company also increased its quarterly dividend from $0.24 to $0.26 per share.
• Analyst sentiment remains mixed, with five Buy, five Hold, and two Sell ratings; the stock carries a consensus “Hold” rating and an average price target of $49.17. Two directors recently sold shares, and insiders own just 0.28% of the company.

The Manufacturers Life Insurance Company bought a new position in Fastenal Company (NASDAQ:FAST - Free Report) during the 2nd quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor bought 739,046 shares of the company's stock, valued at approximately $35,495,000. The Manufacturers Life Insurance Company owned approximately 0.06% of Fastenal as of its most recent filing with the Securities and Exchange Commission (SEC).

Other institutional investors have also recently made changes to their positions in the company. BlackRock Inc. purchased a new position in Fastenal in the 2nd quarter worth approximately $5,105,454,000. State Street Corp boosted its stake in 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 purchasing an additional 631,889 shares during the last quarter. Charles Schwab Investment Management Inc. boosted its stake in Fastenal by 2.0% during the 4th quarter. Charles Schwab Investment Management Inc. now owns 47,297,047 shares of the company's stock valued at $1,898,031,000 after purchasing an additional 919,158 shares during the last quarter. Geode Capital Management LLC increased its holdings in shares of Fastenal by 1.9% in the 4th quarter. Geode Capital Management LLC now owns 37,699,836 shares of the company's stock worth $1,508,216,000 after purchasing an additional 685,047 shares in the last quarter. Finally, Invesco Ltd. increased its holdings in shares of Fastenal by 14.0% in the 3rd quarter. Invesco Ltd. now owns 18,215,875 shares of the company's stock worth $893,307,000 after purchasing an additional 2,242,116 shares in the last quarter. Hedge funds and other institutional investors own 81.38% of the company's stock.

Insider Activity

In other news, Director Rita J. Heise sold 34,964 shares of the stock in a transaction that occurred 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 sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, Director Michael J. Ancius sold 3,000 shares of the firm's stock in a transaction that occurred on Tuesday, July 28th. The stock was sold at an average price of $49.00, for a total transaction of $147,000.00. Following the completion of the transaction, the director directly owned 58,690 shares in the company, valued at approximately $2,875,810. The trade was a 4.86% decrease in their position. The SEC filing for this sale provides additional information. 0.28% of the stock is owned by corporate insiders.

Fastenal Stock Performance

Shares of FAST opened at $51.15 on Thursday. The company has a debt-to-equity ratio of 0.01, a current ratio of 4.18 and a quick ratio of 2.21. Fastenal Company has a one year low of $38.97 and a one year high of $52.92. The firm has a market capitalization of $58.69 billion, a P/E ratio of 43.35, a PEG ratio of 3.14 and a beta of 0.72. The business has a fifty day moving average of $48.27 and a 200 day moving average of $46.45.

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, meeting analysts' consensus estimates of $0.33. The company had revenue of $2.39 billion during the quarter, compared to analysts' expectations of $2.34 billion. Fastenal had a return on equity of 34.03% and a net margin of 15.45%.Fastenal's revenue for the quarter 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. As a group, sell-side analysts anticipate that Fastenal Company will post 1.26 EPS for the current year.

Fastenal Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Tuesday, August 25th. Stockholders of record on Tuesday, July 28th were given a dividend of $0.26 per share. This represents a $1.04 annualized dividend and a dividend yield of 2.0%. The ex-dividend date of this dividend was Tuesday, July 28th. This is an increase from Fastenal's previous quarterly dividend of $0.24. Fastenal's payout ratio is currently 88.14%.

Analyst Upgrades and Downgrades

Several research analysts have recently weighed in on the company. DA Davidson restated a "neutral" rating and issued a $46.00 price target on shares of Fastenal in a research note on Wednesday, July 15th. Rothschild & Co Redburn set a $55.00 price objective on Fastenal and gave the company a "buy" rating in a research report on Monday, July 13th. Weiss Ratings downgraded Fastenal from a "buy (b)" rating to a "buy (b-)" rating in a report on Tuesday, July 21st. Robert W. Baird set a $54.00 target price on Fastenal in a research report on Friday, August 7th. Finally, Jefferies Financial Group restated a "buy" rating on shares of Fastenal in a research note on Thursday, June 4th. Five analysts have rated the stock with a Buy rating, five have given a Hold rating and two have assigned a Sell rating to the stock. Based on data from MarketBeat.com, Fastenal currently has an average rating of "Hold" and an average price target of $49.17.

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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