Insider Trading Report: Fastenal Co (FAST)

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.

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  • 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.

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  • 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.