Daniel Johnson, a director at Fastenal Co (FAST) recently picked up 1,080 shares of the company. The buy increased his holdings by over 14 percent, and came to a total price of just over $50,000.
Director Stephen Eastman was also a recent buyer, with a 1,000-share pickup in late January. Overall, insiders are both active buyers and sellers, with C-suite executives cashing out of stock options while directors keep buying.
The directors are doing a better job, as shares of the company are in an uptrend and have performed 10 points better than the S&P 500 on average over the past year.
With growing earnings and revenue in the high single-digit space, as well as a 15 percent profit margin, the company is faring extremely well for a firm engaging in physical manufacturing today.
Action to take: Investors may like shares, as the company recently raised its annual dividend. Shares now yield near 2.4 percent, up from 2.1 percent last year.
For traders, playing the current uptrend with a call option looks reasonable. The August 2021 $50 calls, currently trading near $2.55, are likely to offer mid-to-high double-digit gains in the weeks ahead. The option stands a good chance of moving in-the-money before expiration, given the amount of time for the trade to play out.