Fastenal: 4 Different Insiders Have Purchased Shares This Year

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 (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%

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

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

Competition

Fastenal's competitors include HD Supply Holdings (HDS), MSC Industrial (MSM), and W.W. Grainger (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%

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

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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Source: Fastenal: 4 Different Insiders Have Purchased Shares This Year

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. (More...)

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