Fastenal (NASDAQ:FAST) Shares Gap Down on Disappointing Earnings

Fastenal (NASDAQ:FAST) gapped down prior to trading on Thursday following a weaker than expected earnings announcement. The stock had previously closed at $32.63, but opened at $31.25. Fastenal shares last traded at $30.36, with a volume of 16,637,719 shares trading hands.

The company reported $0.36 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.37 by ($0.01). The business had revenue of $1.37 billion for the quarter, compared to analyst estimates of $1.38 billion. Fastenal had a return on equity of 33.52% and a net margin of 15.16%. The business’s revenue was up 7.9% on a year-over-year basis. During the same quarter in the previous year, the firm posted $0.37 EPS.

A number of equities analysts have recently weighed in on the stock. William Blair reissued a “market perform” rating on shares of Luminex in a research report on Tuesday, May 7th. BidaskClub raised shares of Zebra Technologies from a “hold” rating to a “buy” rating in a research report on Saturday, July 6th. ValuEngine lowered shares of Verso from a “hold” rating to a “sell” rating in a research report on Thursday, May 23rd. Northcoast Research lowered shares of Fastenal from a “buy” rating to a “neutral” rating in a research report on Monday, April 15th. They noted that the move was a valuation call. Finally, Buckingham Research set a $31.00 price objective on shares of Fastenal and gave the company a “neutral” rating in a research report on Friday, June 14th. Two investment analysts have rated the stock with a sell rating, ten have issued a hold rating and two have given a buy rating to the company. The company has a consensus rating of “Hold” and a consensus price target of $31.11.

In related news, CAO Sheryl Ann Lisowski sold 9,166 shares of the company’s stock in a transaction that occurred on Wednesday, May 15th. The shares were sold at an average price of $64.22, for a total transaction of $588,640.52. Following the completion of the transaction, the chief accounting officer now owns 9,466 shares of the company’s stock, valued at $607,906.52. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, insider Leland J. Hein sold 19,929 shares of the company’s stock in a transaction that occurred on Thursday, April 18th. The stock was sold at an average price of $70.37, for a total transaction of $1,402,403.73. Following the transaction, the insider now directly owns 14,931 shares of the company’s stock, valued at approximately $1,050,694.47. The disclosure for this sale can be found here. Insiders have sold 163,470 shares of company stock valued at $11,485,007 in the last ninety days. 0.62% of the stock is currently owned by company insiders.

Hedge funds have recently modified their holdings of the stock. London Co. of Virginia purchased a new stake in Fastenal during the fourth quarter worth approximately $168,189,000. Norges Bank purchased a new stake in Fastenal during the fourth quarter worth approximately $135,756,000. Riverbridge Partners LLC grew its stake in Fastenal by 91.0% during the second quarter. Riverbridge Partners LLC now owns 3,053,420 shares of the company’s stock worth $99,511,000 after buying an additional 1,454,579 shares during the period. Investmentaktiengesellschaft Fuer Langfristige Investoren TGV grew its stake in Fastenal by 100.0% during the second quarter. Investmentaktiengesellschaft Fuer Langfristige Investoren TGV now owns 2,000,000 shares of the company’s stock worth $65,180,000 after buying an additional 1,000,000 shares during the period. Finally, Douglass Winthrop Advisors LLC grew its stake in Fastenal by 112.2% during the second quarter. Douglass Winthrop Advisors LLC now owns 1,421,607 shares of the company’s stock worth $46,330,000 after buying an additional 751,796 shares during the period. 85.36% of the stock is owned by hedge funds and other institutional investors.

The company has a quick ratio of 1.97, a current ratio of 4.31 and a debt-to-equity ratio of 0.20. The stock has a 50 day moving average of $31.79. The firm has a market cap of $18.07 billion, a P/E ratio of 23.00, a PEG ratio of 1.42 and a beta of 1.25.

Fastenal Company Profile (NASDAQ:FAST)

Fastenal Company, together with its subsidiaries, engages in the wholesale distribution of industrial and construction supplies in the United States, Canada, and internationally. It offers fasteners, and other industrial and construction supplies under the Fastenal name. The company's fastener products include threaded fasteners, such as bolts, nuts, screws, studs, and related washers, which are used in manufactured products and construction projects, as well as in the maintenance and repair of machines.

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