Korea Investment Corp Boosts Fastenal Holdings by 75% in Q2

Korea Investment Corp has significantly increased its stake in Fastenal Company, purchasing an additional 340,367 shares during the second quarter of 2023. This acquisition raised its total holdings by a remarkable 75%, bringing its total shares to 794,357. As of the latest filing with the Securities and Exchange Commission, Korea Investment Corp’s stake is valued at approximately $33.36 million, representing about 0.07% of Fastenal’s total shares.

This move aligns with a trend among institutional investors, as several hedge funds have also recently adjusted their positions in Fastenal. Notably, Vanguard Group Inc. expanded its holdings in the company by 103.5%, acquiring 75,852,223 shares, which now totals 149,169,494 shares worth $6.27 billion. Similarly, Charles Schwab Investment Management Inc. increased its stake by 103.4%, now holding 45,995,937 shares valued at $1.93 billion.

Geode Capital Management LLC and Bank of New York Mellon Corp also boosted their investments. Geode raised its holdings by 103.8%, owning 35,984,281 shares worth $1.51 billion, while Bank of New York Mellon increased its position by 87.9% to 34,851,036 shares valued at about $1.46 billion. Overall, institutional investors collectively own 81.38% of Fastenal’s shares.

Analyst Ratings and Insider Activity

Several research firms have recently provided their analysis on Fastenal’s stock. Sanford C. Bernstein initiated coverage with an “underperform” rating and set a target price of $38.00. In contrast, Northcoast Research issued a “neutral” rating, while Weiss Ratings maintained a “buy (b)” rating. JPMorgan Chase & Co. adjusted its target price from $41.00 to $46.00, maintaining a “neutral” rating. Wolfe Research upgraded its rating from “underperform” to “peer perform,” establishing a new target price of $43.00. Currently, the consensus among analysts is a “Hold” rating with an average target price of $46.32.

In terms of insider activity, Director Sarah N. Nielsen purchased 1,000 shares on November 19, 2023, at an average price of $39.60 per share, increasing her holdings to 5,000 shares valued at approximately $198,000. Another director, Hsenghung Sam Hsu, acquired 1,000 shares on November 13, 2023, at an average price of $49.58, bringing his total to 10,000 shares worth about $495,800. In total, corporate insiders have purchased 3,000 shares valued at $131,630 over the past three months.

Fastenal’s Financial Performance

Fastenal’s stock opened at $40.42 on the last trading day. The company’s financial metrics reflect stability, with a current ratio of 4.26, a quick ratio of 2.19, and a debt-to-equity ratio of 0.03. The firm has a market capitalization of $46.40 billion, a price-to-earnings ratio of 37.77, and a PEG ratio of 3.75.

Fastenal reported its quarterly earnings on October 14, 2023, revealing a net income of $0.29 per share, slightly below the analysts’ consensus estimate of $0.30. The company achieved a revenue of $2.13 billion, which matched expectations and represented an 11.7% increase compared to the same quarter in the previous year. Analysts forecast that Fastenal will report earnings of $2.15 per share for the current fiscal year.

The company has also declared a quarterly dividend of $0.22 per share, paid on November 25, 2023, to shareholders on record as of October 28, 2023. This results in an annualized dividend of $0.88, yielding 2.2%. The ex-dividend date was also October 28, 2023, and currently, Fastenal’s payout ratio stands at 82.24%.

Fastenal Company, along with its subsidiaries, specializes in the wholesale distribution of industrial and construction supplies across the United States and internationally. The company provides a wide range of fasteners and related products used in various construction and maintenance projects.

Investors and analysts continue to monitor Fastenal closely as institutional ownership shifts and insider transactions unfold, reflecting varying perspectives on the company’s future performance.