GW&K Investment Management LLC has decreased its holdings in Fastenal Company (NASDAQ: FAST) by 0.2% during the first quarter of 2023. According to the firm’s most recent Form 13F filing with the Securities and Exchange Commission, the investment management firm now owns 408,785 shares of Fastenal, having sold 633 shares in the reported period. As of the end of this reporting period, GW&K’s stake in the company was valued at approximately $31.7 million.
Other institutional investors have also made adjustments to their positions in Fastenal. Norges Bank established a new stake in the company valued at around $522.6 million in the fourth quarter. Meanwhile, GAMMA Investing LLC significantly increased its holdings by 8,541% during the same quarter, acquiring 1,694,235 shares valued at $131.4 million after purchasing an additional 1,674,628 shares.
Several other firms have also increased their investments in Fastenal. Price T Rowe Associates Inc. MD raised its position by 100.8% in the fourth quarter, now holding 3,081,620 shares worth $221.6 million. Wellington Management Group LLP also boosted its holdings by 301.9%, resulting in ownership of 1,478,233 shares valued at $106.3 million. Additionally, Northern Trust Corp grew its stake by 15.2%, now owning 7,322,739 shares worth $526.6 million. Overall, institutional investors hold 81.38% of Fastenal’s stock.
Analyst Ratings and Stock Performance
Fastenal has attracted attention from analysts, with several recent ratings reflecting a generally positive outlook. On July 14, 2023, Wolfe Research reaffirmed a “positive” rating for the company’s shares. JPMorgan Chase & Co. raised its target price from $38.00 to $41.00 while maintaining a “neutral” rating in a report issued on July 15, 2023. Other firms, such as Loop Capital, Stephens, and Robert W. Baird, also adjusted their target prices, with Baird increasing its estimate from $43.00 to $47.00.
Currently, one equity research analyst has assigned a sell rating to Fastenal stock, while eight analysts have given it a hold rating, and three have assigned a buy rating. The consensus rating remains “hold,” with an average target price of $45.64, according to data from MarketBeat.
Fastenal’s stock price opened at $47.43 on Thursday, reflecting a 0.7% increase. The firm’s 50-day and 200-day simple moving averages are $42.48 and $39.70, respectively. The company maintains a strong financial position, evidenced by its debt-to-equity ratio of 0.03, a quick ratio of 2.12, and a current ratio of 4.22. The stock has fluctuated between a low of $32.04 and a high of $47.62 over the past year.
Financial Results and Dividend Declaration
In its latest quarterly earnings report published on July 14, 2023, Fastenal announced earnings per share of $0.29, exceeding analysts’ expectations of $0.28 by $0.01. The company’s revenue for the quarter reached $2.08 billion, slightly surpassing the consensus estimate of $2.07 billion. Fastenal reported a net margin of 15.30% and a return on equity of 32.33%. Year-over-year, revenue increased by 8.6%, compared to $0.25 earnings per share reported in the same quarter of the previous year. Analysts project Fastenal will achieve an earnings per share of $2.15 for the current fiscal year.
Additionally, the company has declared a quarterly dividend of $0.22 per share, which is set to be paid on August 26, 2023. Shareholders of record on July 29, 2023, will receive this dividend, resulting in an annualized dividend of $0.88 and a yield of 1.86%. The ex-dividend date will also be July 29, 2023. Fastenal’s current dividend payout ratio stands at 84.62%.
Insider Activity
Recent insider transactions reveal activity among Fastenal’s executives. Executive Vice President Anthony Paul Broersma sold 11,136 shares on April 25, 2023, at an average price of $40.60, totaling approximately $452,065.92. Another executive, John Lewis Soderberg, sold 32,724 shares on May 16, 2023, for an average price of $41.23, resulting in a total transaction of $1,349,046.90. Over the past ninety days, insiders have sold a total of 84,252 shares worth $3,521,735, with corporate insiders owning 0.37% of the stock.
Fastenal Company, along with its subsidiaries, operates as a wholesale distributor of industrial and construction supplies across the United States, Canada, Mexico, and globally. The company specializes in fasteners and related supplies essential for manufacturing and construction projects.
