Armstrong Henry H Associates Inc. has significantly increased its investment in Fastenal Company, raising its holdings by 36.2% in the third quarter of 2023. According to the firm’s recent Form 13F filing with the Securities and Exchange Commission, the institutional investor now owns 232,788 shares of Fastenal, following the acquisition of an additional 61,850 shares during the quarter. This investment represents approximately 1.0% of Armstrong Henry H Associates’ total holdings, making Fastenal its 10th largest position, valued at $11.4 million.
Other institutional investors have also adjusted their stakes in Fastenal recently. Rowlandmiller & PARTNERS.ADV increased its position by 1.7%, now owning 14,704 shares worth $721,000. Corient Private Wealth LLC made a notable increase of 88.7% in the second quarter, raising its holdings to 700,970 shares valued at $29.4 million. Additionally, CacheTech Inc. and Adams Wealth Management both initiated new stakes in Fastenal, each valued at about $377,000. The Texas Permanent School Fund Corp also raised its position by 30.2%, obtaining 80,613 shares worth $3.39 million. Currently, institutional investors hold 81.38% of Fastenal’s shares.
Analyst Ratings and Stock Performance
Fastenal has drawn attention from various analysts, with several recent reports influencing its market perception. Jefferies Financial Group assigned a $52.00 price objective and rated the stock as a “buy.” Conversely, Wolfe Research upgraded Fastenal from “underperform” to “peer perform,” setting a price target of $43.00. On September 4, JPMorgan Chase & Co. raised its price objective from $41.00 to $46.00 while maintaining a “neutral” rating. Barclays decreased its target from $45.00 to $44.00, assigning an “equal weight” rating.
The stock currently holds an average rating of “Hold” from analysts, with an average target price of $48.73. Notably, one analyst has issued a Strong Buy rating, five have given a Buy rating, eight have rated it Hold, and one analyst has issued a Sell rating.
On Tuesday, Fastenal opened at $42.58. The company boasts a market capitalization of $48.88 billion and displays a price-to-earnings ratio of 39.79. Fastenal’s performance metrics reflect a current ratio of 4.26, a quick ratio of 2.19, and a debt-to-equity ratio of 0.03. The stock has recorded a 12-month low of $35.31 and a 12-month high of $50.63.
Recent Insider Activity and Earnings Report
Recent insider transactions indicate a growing confidence in Fastenal’s future. Director Hsenghung Sam Hsu purchased 1,000 shares at an average price of $49.58 on November 13, totaling $49,580. This acquisition increased his holdings to 10,000 shares, valued at $495,800. Another director, Sarah N. Nielsen, acquired 1,000 shares at an average cost of $39.60 on November 19, bringing her total to 5,000 shares valued at $198,000.
In its latest quarterly earnings report released on October 14, Fastenal reported earnings of $0.29 per share, falling short of the consensus estimate of $0.30 by $0.01. The company achieved revenues of $2.13 billion, aligning with market expectations. Year-on-year, Fastenal’s revenue increased by 11.7%, with the previous year’s earnings per share at $0.26.
Fastenal also declared a quarterly dividend, payable on November 25, to investors of record as of October 28. Shareholders received a dividend of $0.22 per share, translating to an annualized dividend of $0.88 and a yield of 2.1%. The company’s payout ratio stands at 82.24%.
Fastenal Company, along with its subsidiaries, specializes in the wholesale distribution of industrial and construction supplies across various regions, including the United States, Canada, and Mexico. The company’s product range consists of fasteners and related supplies essential for both manufacturing and construction projects.
