Fastenal Company (NASDAQ:FAST) Increases Dividend to $0.24 Per Share

Fastenal Company (NASDAQ:FAST) announced a quarterly dividend on Friday, January 16th. Stockholders of record on Thursday, January 29th will be paid a dividend of 0.24 per share on Thursday, February 26th. This represents a c) dividend on an annualized basis and a dividend yield of 2.2%. The ex-dividend date is Thursday, January 29th. This is a 9.1% increase from Fastenal’s previous quarterly dividend of $0.22.

Fastenal has raised its dividend payment by an average of 0.1%annually over the last three years and has raised its dividend annually for the last 26 consecutive years. Fastenal has a payout ratio of 80.0% indicating that its dividend is currently covered by earnings, but may not be in the future if the company’s earnings tumble. Analysts expect Fastenal to earn $2.33 per share next year, which means the company should continue to be able to cover its $0.96 annual dividend with an expected future payout ratio of 41.2%.

Fastenal Stock Down 0.4%

NASDAQ:FAST opened at $43.73 on Tuesday. The company has a debt-to-equity ratio of 0.03, a quick ratio of 2.41 and a current ratio of 4.85. The company has a market capitalization of $50.20 billion, a price-to-earnings ratio of 39.75, a price-to-earnings-growth ratio of 2.81 and a beta of 0.90. Fastenal has a one year low of $35.31 and a one year high of $50.63. The stock has a 50-day simple moving average of $41.55 and a 200 day simple moving average of $44.46.

Fastenal (NASDAQ:FAST) last released its earnings results on Tuesday, January 20th. The company reported $0.26 EPS for the quarter, hitting analysts’ consensus estimates of $0.26. The company had revenue of $2.03 billion for the quarter, compared to the consensus estimate of $2.04 billion. Fastenal had a return on equity of 32.83% and a net margin of 15.35%.Fastenal’s quarterly revenue was up 11.1% compared to the same quarter last year. During the same quarter last year, the business posted $0.46 EPS. Sell-side analysts predict that Fastenal will post 2.15 EPS for the current fiscal year.

Insider Buying and Selling at Fastenal

In other Fastenal news, Director Hsenghung Sam Hsu bought 1,000 shares of the business’s stock in a transaction on Thursday, November 13th. The shares were purchased at an average price of $49.58 per share, with a total value of $49,580.00. Following the purchase, the director directly owned 10,000 shares of the company’s stock, valued at approximately $495,800. The trade was a 11.11% increase in their ownership of the stock. The acquisition was disclosed in a document filed with the SEC, which is accessible through this link. Also, Director Sarah N. Nielsen purchased 1,000 shares of the firm’s stock in a transaction dated Wednesday, November 19th. The stock was acquired at an average cost of $39.60 per share, with a total value of $39,600.00. Following the purchase, the director owned 5,000 shares of the company’s stock, valued at approximately $198,000. This represents a 25.00% increase in their position. The SEC filing for this purchase provides additional information. 0.37% of the stock is owned by insiders.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently made changes to their positions in the stock. Vanguard Group Inc. raised its holdings in Fastenal by 103.5% during the second quarter. Vanguard Group Inc. now owns 149,169,494 shares of the company’s stock worth $6,265,119,000 after purchasing an additional 75,852,223 shares in the last quarter. State Street Corp raised its stake in shares of Fastenal by 99.6% in the 2nd quarter. State Street Corp now owns 54,317,385 shares of the company’s stock worth $2,281,330,000 after buying an additional 27,107,520 shares in the last quarter. Charles Schwab Investment Management Inc. lifted its holdings in shares of Fastenal by 103.4% in the second quarter. Charles Schwab Investment Management Inc. now owns 45,995,937 shares of the company’s stock valued at $1,931,830,000 after buying an additional 23,380,022 shares during the period. Geode Capital Management LLC boosted its stake in Fastenal by 103.8% during the second quarter. Geode Capital Management LLC now owns 35,984,281 shares of the company’s stock valued at $1,506,141,000 after buying an additional 18,329,847 shares in the last quarter. Finally, Bank of New York Mellon Corp grew its holdings in Fastenal by 87.9% during the second quarter. Bank of New York Mellon Corp now owns 34,851,036 shares of the company’s stock worth $1,463,743,000 after acquiring an additional 16,308,254 shares during the period. 81.38% of the stock is currently owned by institutional investors.

About Fastenal

Fastenal (NASDAQ: FAST) is a wholesale distributor of industrial and construction supplies, best known for its broad assortment of fasteners such as bolts, nuts, screws and anchors. Founded in Winona, Minnesota, Fastenal has grown from a regional supplier into a national and international distributor serving a wide range of end markets, including manufacturing, construction, maintenance, repair and operations (MRO), and government customers. The company is publicly traded and operates through a network of locally staffed branches combined with national distribution capabilities.

Product offerings extend beyond fasteners to include tools, safety and personal protective equipment, power transmission components, cutting and welding supplies, janitorial and material handling items, and other industrial consumables.