Fastenal Company [FAST] is -25.76% lower this YTD. Is it still time to buy?

Fastenal Company [NASDAQ: FAST] gained 1.54% or 0.72 points to close at $47.56 with a heavy trading volume of 2582261 shares. The company report on November 7, 2022 that Fastenal Hits $1 Billion in Year-to-Date eCommerce Revenue.

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In recent years, Fastenal celebrated two major milestones related to its FAST Solutions program, surpassing 100,000 active FMI Technology devices within customer sites and, later, 1,000 Onsite partnership programs. In October, the company added a third significant milestone to the list, for the first time reaching $1 billion in eCommerce revenue within a calendar year.

Fastenal’s eCommerce platform officially launched more than 20 years ago, but historically it represented a relatively small share of the overall business. This began to change about five years ago with a strategy positioning eCommerce as a critical component of the company’s high-tech, high-touch service model. While many retailers and distributors were racing to move their offline business online in pursuit of a lower cost to serve, Fastenal took a very different approach – using its eCommerce platform to identify opportunities to migrate customer spend from a transactional (and, for the customer, higher-cost) online environment to a more strategic and efficient environment anchored by the company’s Onsite and FMI (Fastenal Managed Inventory) programs.

It opened the trading session at $47.25, the shares rose to $47.81 and dropped to $47.08, the range by which the price of stock traded the whole day. The daily chart for FAST points out that the company has recorded -4.73% loss over the past six months. However, it is still -8.76% lower than its most recent low trading price.

If we look at the average trading volume of 3.56M shares, FAST reached to a volume of 2582261 in the most recent trading day, which is why market watchdogs consider the stock to be active.

Here is what top equities market gurus are saying about Fastenal Company [FAST]:

Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for FAST shares is $49.75 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on FAST stock is a recommendation set at 3.00. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.

Jefferies have made an estimate for Fastenal Company shares, keeping their opinion on the stock as Hold, with their previous recommendation back on October 17, 2022. The new note on the price target was released on July 14, 2022, representing the official price target for Fastenal Company stock. Previously, the target price had yet another raise from $50 to $58, while Wells Fargo kept a Equal Weight rating on FAST stock. On October 08, 2021, analysts decreased their price target for FAST shares from 50 to 45.

The Average True Range (ATR) for Fastenal Company is set at 1.10, with the Price to Sales ratio for FAST stock in the period of the last 12 months amounting to 3.99. The Price to Book ratio for the last quarter was 8.62, with the Price to Cash per share for the same quarter was set at 0.40.

Trading performance analysis for FAST stock

Fastenal Company [FAST] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -0.79. With this latest performance, FAST shares dropped by -5.39% in over the last four-week period, additionally sinking by -4.73% over the last 6 months – not to mention a drop of -26.17% in the past year of trading.

Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for FAST stock in for the last two-week period is set at 39.05, with the RSI for the last a single of trading hit 36.96, and the three-weeks RSI is set at 42.01 for Fastenal Company [FAST]. The present Moving Average for the last 50 days of trading for this stock 49.47, while it was recorded at 47.47 for the last single week of trading, and 51.48 for the last 200 days.

Fastenal Company [FAST]: A deeper dive into fundamental analysis

Operating Margin for any stock indicates how profitable investing would be, and Fastenal Company [FAST] shares currently have an operating margin of +20.25 and a Gross Margin at +43.54. Fastenal Company’s Net Margin is presently recorded at +15.39.

Return on Equity for this stock inclined to 32.03, with Return on Assets sitting at 22.39.

Fastenal Company’s liquidity data is similarly interesting compelling, with a Quick Ratio of 1.90 and a Current Ratio set at 4.00.

Fastenal Company [FAST]: An earnings per share (EPS) analysis

The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for FAST. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for Fastenal Company go to 6.33%.

An analysis of insider ownership at Fastenal Company [FAST]

There are presently around $21,669 million, or 79.30% of FAST stock, in the hands of institutional investors. The top three institutional holders of FAST stocks are: VANGUARD GROUP INC with ownership of 69,012,006, which is approximately 0.083% of the company’s market cap and around 0.10% of the total institutional ownership; BLACKROCK INC., holding 44,836,648 shares of the stock with an approximate value of $2.13 billion in FAST stocks shares; and STATE STREET CORP, currently with $1.33 billion in FAST stock with ownership of nearly 2.254% of the company’s market capitalization.

Positions in Fastenal Company stocks held by institutional investors increased at the end of October and at the time of the October reporting period, where 439 institutional holders increased their position in Fastenal Company [NASDAQ:FAST] by around 22,926,933 shares. Additionally, 446 investors decreased positions by around 20,765,389 shares, while 193 investors held positions by with 411,920,719 shares. The mentioned changes placed institutional holdings at 455,613,041 shares, according to the latest SEC report filing. FAST stock had 63 new institutional investments in for a total of 4,502,492 shares, while 72 institutional investors sold positions of 1,496,456 shares during the same period.


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