Insider Trading Report: Fastenal (FAST)

Michael Ancius, a director at Fastenal (FAST), recently added 1,000 shares. The buy increased his stake by 3 percent, and came to a total purchase price of $51,000.

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  • This is the fourth buy from the director this year, who in total has now acquired over 2,100 shares. Going back further, sellers at the company have exceeded buyers over the past three years.

    Overall, insiders own about 0.2 percent of shares.

    The distributer of fasteners and other industrial equipment is down about 6 percent over the past year, about in line with the overall market. But with revenue up 20 percent and earnings up 28 percent, the company will likely also be recession-resistant and capable of growth in tough economic conditions.

    Action to take: Shares are a bit pricey at 28 times forward earnings, but investors may want to start building a stake here. The company is a dividend growth stock, with a starting yield of about 2.5 percent now.

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  • For traders, shares will likely trade with the overall market in the short term. However, the November $60 calls, last going for about $1.75, offers mid-to-high double-digit upside on a relief rally in the stock in the coming months. Traders may want to buy a few contracts now, and look to add more on any short-term pullback in the stock.

     

    Disclosure: The author of this article has no position in the company mentioned here, but may trade after the next 72 hours. The author receives no compensation from any of the companies mentioned in this article.