Fastenal Company (FAST) Stock: The Clock Is Ticking

For the period that ended November 15, 2019, the short interest in Fastenal Company (NASDAQ:FAST) stock is on the down. The 3.21% decline could be an indication that investors and traders expect a growth in the share price, often as a result of an advancement in the business’ fundamentals. The average brokerage opinion at 3 suggests acquiring these shares. Between October 31 and November 15, the total count of shorted shares totalled 34.17 million. That number was 1,131,587 less shares compared with the total of 35.3 million shares in the space of prior two weeks, which suggests more traders or funds are betting that the company stock will move up. The average daily volume for FAST at the November 15th settlement retreated to 3,808,636, versus 4,815,925 at the October 31st report. That led days to cover to move at 8.970423, a 22.39% increase compared to the 7.329156 days to cover recorded at the prior short interest data release.

On December 03, 2019, Fastenal Company (NASDAQ:FAST) shares lost -0.14% or -0.05 points to close at $34.91 with a thin trading volume of 3.226 million shares. It opened the trading session at $34.52, the shares rose to $35.035 and dropped to $34.03, the range by which the price of stock traded the whole day. The company now has a market cap of $20.2 billion and currently has 577.89 million outstanding shares. Fastenal Company (FAST) stock has plunged -6.03 percent of market value in 21 trading days.

FAST stock’s trailing 3-year beta is 1.22, meaning there will be a greater rate of return, although posing a higher risk. The part of a firm’s profit given to each outstanding share of regular stock was $1.34 share in the trailing 52 weeks. The stock’s value surged 33.52 percent year to date (YTD) compared to a rise of 17.82 percent in 52 week’s period. The firm’s shares are still trading -7.91 percent below its 1-year high of $37.91 and 41.88 percent up from 52-week low of $24.60. The average consensus ranking on the company is 3, on a ranging where 5 is equal to a consensus sell rating. In other words, the mean analyst recommendations are ranking this stock as a hold.

Fastenal Company (FAST) is most likely going to rise -1.89 percent in the coming 12 months, as per price target approximations compiled by finviz. Nevertheless, they have set the price target at a $39-month high price target. This represents a whopping 11.72 percent increase from the current trading of shares. The 52-week median price target given by the analysts is $34, which means a return possibility of -2.61 percent in comparison with the closing price of the stock of $34.91 on December 03. The lowest price set for the stock is $27 — just above -22.66 percent from FAST share price now.

Past records have indicated that shares in Fastenal Company declined on 30 different earnings reaction days and we have yet to see whether this trend will play out and remain in place when the company reports upcoming earnings. Investors will get the next hint of FAST’s Q4 earnings on January 17. Analysts are predicting revenue to climb 5.9 percent to $1.3B in the financial fourth quarter, while EPS will soar by about 10.34 percent to $0.32 per share. Earnings are seen to rise by 34.3 percent this year, 5.27 percent in the coming year and the trend continues by 19 percent every year in the next 5 years.

Let’s take a glimpse at some insider activity at Fastenal Company (NASDAQ:FAST) and observe the pattern. The earliest insider trade happened on 11/13/2019. Miller Charles S. parted with a total of 4.38 thousand shares of the firm at average share price of $35.98. The total amount for the sale was set at $157.45 thousand. On completing this exchange, the Executive Vice President account balance was 19.18 thousand shares. The stock lost -2.83 percent from that insider sale. On 11/07/2019, Lisowski Sheryl Ann, CAO/Controller/Treasurer, did a sale of 20.58 thousand shares at a price of $36.94 per share. This got rid of 760.15 thousand shares from the insider’s fortune and the stock experienced a -5.36 percent retreat in price since the news became public. This exchange saw 0.6 thousand shares get out from the CAO/Controller/Treasurer account.

On 10/22/2019, Director OBERTON WILLARD D recorded a sale transaction valued at $3.7 million. The sale at $37 a share has eliminated 100 thousand shares from the insider’s portfolio position. Meanwhile, shares price witnessed -5.51 percent decrease since the transaction reporting date. The company insider is left with 959.21 thousand shares remaining in the account. Watts Jeffery Michael, who works as Executive Vice-President at the company, performed a sale of 29 thousand shares in a transaction worth $1.08 million. The disposal recorded on 10/22/2019 was priced at $37.1 per share. The stock price plunged -5.77 percent since the transaction. Watts Jeffery Michael currently holds a stake of 0 thousand in FAST stock which is worth $0 thousand after the insider selling.

The stock is lingering around the initial support level of $34.28. After this, the following support is at the zone of $33.65. Up until the time the FAST stock hit levels beyond the current one, bulls should have no alarm. In terms of its momentum, the stock’s RSI hit 44.43 on the daily chart, and this may be a cause for concern. In case the price goes below $33.65 level on closing basis, there may be more profit booking with the stock growing weaker. Still, getting to the $35.29 level may cause a pull-back move approaching $35.66 mark.

Fastenal Company (FAST) shares are trading at a P/E ratio of 25.7 times earnings posted in the trailing 12 months. The industry FAST deals with has an average P/E of 19.9. Its P/B ratio is standing at 7.7X compared to the 4.3 industry average. It is additionally sporting a 3.8 on the Price-to-Sales ratio, compared to the industry’s P/S average of 1.1. Fastenal Company has a 47.4% gross profit margin, with its operating margin around 19.9%. Alongside this, the company’s net profit margin currently stands at 14.8%.