Fastenal Co. (NASDAQ:FAST) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a note issued to investors on Friday.
According to Zacks, “Fastenal Company reported lower-than expected results in the third quarter of 2016, missing estimates for both earnings and sales. Fastenal’s revenues are being hurt as the sales of fasteners into heavy manufacturing, construction end markets were relatively weak. It is due to overall weakness in the industrial economy. An unfavorable customer mix and product mix resulted in below average gross margins. In fact, the company does not see any improvement in gross margin rates through the rest of 2016 as well. That said, the company’s cost-saving initiative Pathway-to-Profit bode well. Meanwhile, vending trends continue to improve in 2016 as efforts to improve the quality of signings/installs paid off. In 2016, the company intends to increase its investment in the vending program and expects it to outperform through 2016 and beyond.”
A number of other research firms also recently issued reports on FAST. Vetr downgraded Fastenal from a “strong-buy” rating to a “hold” rating and set a $42.46 price target for the company. in a research report on Tuesday, September 6th. BMO Capital Markets set a $45.00 price target on Fastenal and gave the company a “hold” rating in a research report on Wednesday, October 12th. Robert W. Baird reissued a “neutral” rating and set a $45.00 price target on shares of Fastenal in a research report on Thursday, October 13th. Argus downgraded Fastenal from a “buy” rating to a “hold” rating in a research report on Friday. Finally, Credit Suisse Group AG reissued a “neutral” rating and set a $43.00 price target on shares of Fastenal in a research report on Friday, June 17th. Two analysts have rated the stock with a sell rating, fourteen have issued a hold rating and one has assigned a buy rating to the company’s stock. The stock has an average rating of “Hold” and an average target price of $47.15.
Shares of Fastenal (NASDAQ:FAST) opened at 38.27 on Friday. The firm has a market cap of $11.06 billion, a price-to-earnings ratio of 21.87 and a beta of 0.99. Fastenal has a 12 month low of $35.10 and a 12 month high of $49.99. The stock’s 50 day moving average price is $41.13 and its 200 day moving average price is $43.84.
Fastenal (NASDAQ:FAST) last posted its quarterly earnings results on Tuesday, October 11th. The company reported $0.44 earnings per share (EPS) for the quarter, missing the Zacks’ consensus estimate of $0.45 by $0.01. Fastenal had a net margin of 12.61% and a return on equity of 26.84%. The firm had revenue of $1.01 billion for the quarter. During the same period in the previous year, the business posted $0.47 earnings per share. The company’s revenue for the quarter was up 1.8% compared to the same quarter last year. Equities research analysts predict that Fastenal will post $1.74 earnings per share for the current fiscal year.
The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, November 22nd. Shareholders of record on Tuesday, October 25th will be paid a dividend of $0.30 per share. This represents a $1.20 annualized dividend and a yield of 3.14%. The ex-dividend date is Friday, October 21st. Fastenal’s payout ratio is currently 69.77%.
In other news, Director Michael J. Ancius acquired 700 shares of the business’s stock in a transaction on Thursday, October 13th. The shares were purchased at an average price of $38.82 per share, for a total transaction of $27,174.00. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Company insiders own 0.78% of the company’s stock.
A number of hedge funds have recently made changes to their positions in FAST. Capital Fund Management S.A. purchased a new stake in shares of Fastenal during the second quarter valued at about $17,477,000. Compass Capital Management Inc. boosted its stake in shares of Fastenal by 4.4% in the second quarter. Compass Capital Management Inc. now owns 446,778 shares of the company’s stock worth $19,832,000 after buying an additional 18,880 shares during the last quarter. Silvercrest Asset Management Group LLC bought a new stake in shares of Fastenal during the first quarter worth $249,000. HL Financial Services LLC boosted its stake in shares of Fastenal by 3.2% in the second quarter. HL Financial Services LLC now owns 1,683,802 shares of the company’s stock worth $74,744,000 after buying an additional 52,626 shares during the last quarter. Finally, Genesee Valley Trust Co. boosted its stake in shares of Fastenal by 2.2% in the second quarter. Genesee Valley Trust Co. now owns 27,567 shares of the company’s stock worth $1,224,000 after buying an additional 587 shares during the last quarter. Hedge funds and other institutional investors own 82.15% of the company’s stock.
Fastenal Company Profile
Fastenal Company is engaged in wholesale distribution of industrial and construction supplies. The Company distributes these supplies through a network of approximately 2,600 Company-owned stores. The Company sells industrial and construction supplies to end users (business-to-business), and also has a walk-in retail business.
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