Fastenal Company (FAST) to Issue Quarterly Dividend of $0.32
Fastenal Company (NASDAQ:FAST) declared a quarterly dividend on Tuesday, October 10th, RTT News reports. Investors of record on Wednesday, October 25th will be given a dividend of 0.32 per share on Wednesday, November 22nd. This represents a $1.28 annualized dividend and a yield of 2.85%.
Fastenal has increased its dividend payment by an average of 14.5% annually over the last three years and has raised its dividend annually for the last 6 consecutive years. Fastenal has a payout ratio of 66.7% meaning its dividend is sufficiently covered by earnings. Equities research analysts expect Fastenal to earn $2.11 per share next year, which means the company should continue to be able to cover its $1.28 annual dividend with an expected future payout ratio of 60.7%.
Fastenal (NASDAQ FAST) traded down 2.03% on Tuesday, reaching $44.86. 4,242,187 shares of the company traded hands. The firm has a market cap of $12.92 billion, a P/E ratio of 24.69 and a beta of 1.00. Fastenal has a 52-week low of $37.70 and a 52-week high of $52.74. The stock has a 50-day moving average price of $43.58 and a 200-day moving average price of $44.38.
Fastenal (NASDAQ:FAST) last issued its quarterly earnings data on Wednesday, July 12th. The company reported $0.52 earnings per share for the quarter, topping the consensus estimate of $0.50 by $0.02. Fastenal had a net margin of 12.71% and a return on equity of 26.86%. The business had revenue of $1.12 billion during the quarter, compared to analysts’ expectations of $1.11 billion. During the same quarter in the previous year, the company earned $0.46 EPS. The business’s revenue was up 10.6% on a year-over-year basis. Analysts anticipate that Fastenal will post $1.92 earnings per share for the current fiscal year.
In related news, Director Stephen L. Eastman acquired 800 shares of the stock in a transaction that occurred on Tuesday, August 22nd. The stock was acquired at an average cost of $40.58 per share, for a total transaction of $32,464.00. The transaction was disclosed in a filing with the SEC, which is available through this link. Also, insider William Joseph Drazkowski acquired 1,000 shares of the stock in a transaction that occurred on Friday, July 21st. The shares were bought at an average price of $42.36 per share, with a total value of $42,360.00. Following the completion of the transaction, the insider now owns 1,960 shares in the company, valued at $83,025.60. The disclosure for this purchase can be found here. Over the last quarter, insiders have purchased 3,400 shares of company stock valued at $142,960. 0.55% of the stock is owned by corporate insiders.
Fastenal announced that its Board of Directors has authorized a stock repurchase program on Tuesday, July 11th that allows the company to repurchase 5,000,000 shares. This repurchase authorization allows the company to buy shares of its stock through open market purchases. Stock repurchase programs are often a sign that the company’s leadership believes its shares are undervalued.
Several analysts have weighed in on FAST shares. Morgan Stanley reiterated an “equal weight” rating and issued a $46.00 price objective (down previously from $50.00) on shares of Fastenal in a research note on Monday, June 12th. BidaskClub upgraded shares of Fastenal from a “sell” rating to a “hold” rating in a research note on Tuesday, June 13th. Wells Fargo & Company reiterated a “market perform” rating and issued a $47.00 price objective (down previously from $51.00) on shares of Fastenal in a research note on Wednesday, July 12th. Robert W. Baird upgraded shares of Fastenal from a “neutral” rating to an “outperform” rating and set a $53.00 price objective for the company in a research note on Wednesday, July 12th. Finally, Credit Suisse Group reiterated a “buy” rating and issued a $52.00 price objective on shares of Fastenal in a research note on Thursday, July 13th. One equities research analyst has rated the stock with a sell rating, five have issued a hold rating, ten have assigned a buy rating and two have issued a strong buy rating to the company’s stock. The stock presently has a consensus rating of “Buy” and an average price target of $50.87.
Fastenal Company Profile
Fastenal Company is engaged in wholesale distribution of industrial and construction supplies. The Company is engaged in fastener distribution, and non-fastener maintenance and supply business. As of December 31, 2016, it distributed these supplies through a network of approximately 2,500 stores. Its customers are in the manufacturing and non-residential construction markets.
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