Fastenal Co. (FAST) Downgraded by Zacks Investment Research
Fastenal Co. (NASDAQ:FAST) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research note issued 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 equities analysts also recently issued reports on the company. Argus downgraded Fastenal from a “buy” rating to a “hold” rating in a report on Friday. Robert W. Baird reaffirmed a “neutral” rating and issued a $45.00 price target on shares of Fastenal in a report on Thursday. BMO Capital Markets set a $45.00 price target on Fastenal and gave the company a “hold” rating in a report on Wednesday. Vetr downgraded Fastenal from a “strong-buy” rating to a “hold” rating and set a $42.46 price target for the company. in a report on Tuesday, September 6th. Finally, Wells Fargo & Co. reaffirmed a “hold” rating on shares of Fastenal in a report on Sunday, September 4th. Two investment analysts have rated the stock with a sell rating, fourteen have issued a hold rating and one has given a buy rating to the company. Fastenal currently has an average rating of “Hold” and an average price target of $47.15.
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Fastenal (NASDAQ:FAST) opened at 38.34 on Friday. The stock’s 50 day moving average is $41.44 and its 200 day moving average is $44.06. The stock has a market capitalization of $11.08 billion, a price-to-earnings ratio of 21.91 and a beta of 0.99. Fastenal has a 12-month low of $35.10 and a 12-month high of $49.99.
Fastenal (NASDAQ:FAST) last released its earnings results on Tuesday, October 11th. The company reported $0.44 earnings per share for the quarter, missing the Zacks’ consensus estimate of $0.45 by $0.01. Fastenal had a return on equity of 26.84% and a net margin of 12.61%. The firm had revenue of $1.01 billion for the quarter. During the same quarter last year, the firm earned $0.47 EPS. The business’s revenue for the quarter was up 1.8% on a year-over-year basis. Equities research analysts forecast that Fastenal will post $1.74 EPS for the current fiscal year.
The business also recently declared a quarterly dividend, which will be paid on Tuesday, November 22nd. Stockholders 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 dividend yield of 3.13%. The ex-dividend date of this dividend is Friday, October 21st. Fastenal’s dividend payout ratio (DPR) is presently 69.77%.
Large investors have recently added to or reduced their stakes in the company. Nicholas Investment Partners LP acquired a new position in Fastenal during the first quarter valued at about $2,870,000. Cleararc Capital Inc. boosted its position in Fastenal by 2.1% in the first quarter. Cleararc Capital Inc. now owns 7,241 shares of the company’s stock valued at $355,000 after buying an additional 152 shares during the last quarter. Riverhead Capital Management LLC boosted its position in Fastenal by 12.1% in the first quarter. Riverhead Capital Management LLC now owns 213,330 shares of the company’s stock valued at $10,454,000 after buying an additional 23,105 shares during the last quarter. AXA boosted its position in Fastenal by 12.0% in the first quarter. AXA now owns 109,100 shares of the company’s stock valued at $5,346,000 after buying an additional 11,700 shares during the last quarter. Finally, Pictet Asset Management Ltd. boosted its position in Fastenal by 2.1% in the first quarter. Pictet Asset Management Ltd. now owns 149,030 shares of the company’s stock valued at $6,750,000 after buying an additional 3,000 shares during the last quarter. Institutional investors and hedge funds own 82.12% of the company’s stock.
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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