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In this article, I will feature one industrial stock that has seen intensive insider buying during the last 30 days. Intensive insider buying can be defined by the following three criteria:

  1. The stock is purchased by three or more insiders within one month.
  2. The stock is sold by no insiders in the month of intensive purchasing.
  3. At least two purchasers increased their holdings by more than 10%.

Fastenal Company (NASDAQ:FAST) operates as a wholesaler and retailer of industrial and construction supplies in the United States, Canada, and internationally.

(click to enlarge)

Insider buying during the last 30 days

Here is a table of Fastenal's insider-trading activity during the last 30 days by insider.

NameTitleTrade DateShares PurchasedCurrent OwnershipIncrease In Shares
Rita HeiseDirectorJan 301,0002,000 shares+100%
Michael AnciusDirectorJan 27-306057,794 shares+8.4%
Nicholas LundquistEVPJan 274,000232,542 shares+1.8%
Leland HeinPresidentJan 174,30019,244 shares+28.8%

There have been 9,905 shares purchased by insiders during the last 30 days.

Insider buying by calendar month

Here is a table of Fastenal's insider-trading activity by calendar month.

MonthInsider buying / sharesInsider selling / shares
January 20149,9050
December 201300
November 20134,500200,000
October 2013525100,000
September 20132,2160
August 20131,0000
July 2013012,500
June 20131,4000
May 201300
April 20134280
March 201300
February 201312,0000
January 2013025,000

There have been 31,974 shares purchased, and there have been 337,500 shares sold by insiders since January 2013.

Financials

Fastenal reported the full-year 2013 financial results on January 15 with the following highlights:

Revenue$3.3 billion
Net income$448.6 million
Cash$59.0 million

Competition

Fastenal's competitors include HD Supply Holdings (NASDAQ:HDS), MSC Industrial (NYSE:MSM), and W.W. Grainger (NYSE:GWW). Here is a table comparing these companies.

CompanyFASTHDSMSMGWW
Market Cap:13.04B4.12B5.22B16.21B
Employees:17,27715,0006,133N/A
Qtrly Rev Growth (yoy):0.080.070.180.07
Revenue:3.33B8.62B2.56B9.44B
Gross Margin:0.520.290.460.44
EBITDA:776.21M714.00M457.13M1.48B
Operating Margin:0.210.050.160.14
Net Income:448.64M-866.00M232.11M797.04M
EPS:1.51-5.713.6811.13
P/E:29.09N/A22.8421.07
PEG (5 yr expected):1.692.011.551.41
P/S:3.950.482.051.74
Insider Ownership:4.20%N/A1.00%1.40%

Fastenal has the highest insider ownership among these four companies.

Here is a table of these competitors' insider-trading activities during the last 12 months.

CompanyInsider buying / sharesInsider selling / shares
HDS2,00067,758
MSM0866,728
GWW0115,196

Only Fastenal has seen intensive insider buying during the last 30 days.

Conclusion

There have been four different insiders buying Fastenal, and there have not been any insiders selling Fastenal during the last 30 days. Two of these four insiders increased their holdings by more than 10%. Fastenal has an insider ownership of 4.20%.

Fastenal has a $36 price target from the Point and Figure chart. I would be looking to be a buyer around $36 based on the intensive insider buying.

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Source: Fastenal: 4 Different Insiders Have Purchased Shares This Year