Nicholas J. Lundquist, a director at Fastenal Co (NASDAQ:FAST), has reported the sale of 8,488 shares of common stock, according to a recent SEC filing. The shares were sold at an average price of $83.14 each, amounting to a total transaction value of approximately $705,694. Following this transaction, Lundquist retains direct ownership of 9,000 shares, with an additional 426,000 shares held in his self-directed IRA and 65,000 shares owned indirectly by his spouse.
In other recent news, Fastenal Company (NASDAQ:FAST) announced a 3.5% increase in net sales and a 1% rise in earnings per share to $0.52 in its Q3 2024 earnings call. Fastenal also signed 93 new Onsite locations, increasing active sites by 12%, and saw a 25.5% rise in eCommerce sales, which accounted for 61.1% of total sales. Investment firms Baird, Loop Capital, and Stephens have recently raised their price targets for Fastenal to $80, $72, and $75 respectively, maintaining neutral ratings. Fastenal also announced the promotion of Donnalee K. Papenfuss to Executive Vice President of Strategy and Communications, who will lead strategic initiatives focused on technology, sales, and ESG practices. Fastenal aims to reach between 375 and 400 active Onsite locations, projects a stable fourth quarter performance, and anticipates lower capital expenditures in 2025 compared to the current $250 million run rate. The company has set a target of $10 billion in future revenue, with plans to add $1 billion annually. These strategies will be outlined at an Analyst Day scheduled for April, as revealed in the Q3 2024 earnings call. Despite broader market activity remaining sluggish, Fastenal's management expressed a cautiously optimistic outlook, anticipating that the company's market share could continue to increase into 2025.
InvestingPro Insights
Fastenal Co's recent stock performance and financial metrics provide additional context to Nicholas J. Lundquist's share sale. According to InvestingPro data, Fastenal's stock has shown significant momentum, with a 29.03% price total return over the past three months and a 25.62% return over the last six months. This upward trend is further emphasized by the stock trading at 99.02% of its 52-week high, suggesting strong investor confidence.
The company's financial health appears robust, with a market capitalization of $48.09 billion and a revenue of $7.48 billion over the last twelve months as of Q3 2024. Fastenal's profitability is evident from its operating income margin of 20.31% and a gross profit margin of 45.23% for the same period.
InvestingPro Tips highlight that Fastenal has maintained dividend payments for 32 consecutive years, which may be attractive to income-focused investors. The current dividend yield stands at 1.85%, with a notable dividend growth of 11.43% over the last twelve months.
However, investors should note that the stock is trading at a high P/E ratio of 41.53, which is significantly above the market average. This valuation metric, combined with an InvestingPro Tip indicating that the stock is trading at a high earnings multiple, suggests that Fastenal may be priced at a premium relative to its earnings.
For readers interested in a more comprehensive analysis, InvestingPro offers 20 additional tips for Fastenal, providing a deeper dive into the company's financial health and market position.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.