Fastenal: 4 Different Insiders Have Purchased Shares This Year

Feb. 3.14 | About: Fastenal Company (FAST)

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.

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Insider buying during the last 30 days

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

Name Title Trade Date Shares Purchased Current Ownership Increase In Shares
Rita Heise Director Jan 30 1,000 2,000 shares +100%
Michael Ancius Director Jan 27-30 605 7,794 shares +8.4%
Nicholas Lundquist EVP Jan 27 4,000 232,542 shares +1.8%
Leland Hein President Jan 17 4,300 19,244 shares +28.8%
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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.

Month Insider buying / shares Insider selling / shares
January 2014 9,905 0
December 2013 0 0
November 2013 4,500 200,000
October 2013 525 100,000
September 2013 2,216 0
August 2013 1,000 0
July 2013 0 12,500
June 2013 1,400 0
May 2013 0 0
April 2013 428 0
March 2013 0 0
February 2013 12,000 0
January 2013 0 25,000
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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
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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.

Company FAST HDS MSM GWW
Market Cap: 13.04B 4.12B 5.22B 16.21B
Employees: 17,277 15,000 6,133 N/A
Qtrly Rev Growth (yoy): 0.08 0.07 0.18 0.07
Revenue: 3.33B 8.62B 2.56B 9.44B
Gross Margin: 0.52 0.29 0.46 0.44
EBITDA: 776.21M 714.00M 457.13M 1.48B
Operating Margin: 0.21 0.05 0.16 0.14
Net Income: 448.64M -866.00M 232.11M 797.04M
EPS: 1.51 -5.71 3.68 11.13
P/E: 29.09 N/A 22.84 21.07
PEG (5 yr expected): 1.69 2.01 1.55 1.41
P/S: 3.95 0.48 2.05 1.74
Insider Ownership: 4.20% N/A 1.00% 1.40%
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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.

Company Insider buying / shares Insider selling / shares
HDS 2,000 67,758
MSM 0 866,728
GWW 0 115,196
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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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Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.