US Nasdaq stock alert

USA

Morning Alert: Fastenal lifts 2.0% on robust volume 18 January 2018 11:11 EST

NEWS BITES - NORTH AMERICA

Fastenal Company (NASDAQ:FAST) traded on heavy volume of 1.5 times average so far today while the price lifted $US1.06 (or 2.0%) to trade at $US53.26.

SECTION 1: The past week

Current indications of bullish signals that support the trend in the unusual trading

1.1 5-day Recap

Fastenal outperformed the NASDAQ-100 index in 3 out of 4 days.

[Volume Index (VI); 1 is average]

DayHeadlineClose price [USD]Price change %Relative change %Comment
TuesdayFastenal hits year-high 6th time in three months ahead of earnings55.44-0.30.1
FridayFastenal up 2.2% in 2 days55.590.90.2
ThursdayFastenal increases 1.2%55.091.20.6Top Rise

Note

DayHeadlineClose price [USD]Price change %Relative change %Comment
WednesdayFastenal sinks 5.8% on strong volume52.2-5.8-6.9Steepest Fall; VI=2.7

SECTION 2: Technical indicators

Bullish:

The positive 0.48 MACD (Moving Average Convergence Divergence) indicator suggests a bullish signal (12-day minus 26-day Exponential Moving Averages). Both the 12-day and the 26-day EMA are rising - another bullish signal. In the past week, the stock's MACD has been positive in four days, a reinforcing bullish signal.

The 5.1% discount to 12-month high of $US56.15 against the 33.9% premium to 12-month low of $US39.79 suggests the stock continues to push for new highs.

In the last three months the stock has hit a new 52-week high six times, pointing to an uptrend.

The present value of USD1,000 invested one year ago is $US1,073 [vs $US1,345 for the NASDAQ-100 Index], including a capital gain of $US43 and dividend reinvested of $US30. The total return to shareholders for 1 year is 7.3%.

Fundamental measures by comparison with the sector average [in brackets] indicate:

Parity:

Price/Earnings of 30.8 [30.8]

Undervaluation:

Dividend yield of 2.4% [1.1%]

Return on Equity 25.8% [15.9%]

Return on Assets 18.7% [4.1%]

Return on Capital Employed 33.3% [7.5%]

Total Liabilities/EBITDA of 0.9 is comfortably below the Joseph Piotroski benchmark of <5.

Overvaluation:

Price/Earnings/Growth of 6.61 [1.4]

Price/Sales of 3.9 [1.3]

Note

The stock has outperformed 71% of the NASDAQ market over the past 6 months.

Bearish:

The price dropped 3.3% in the last week and decreased 0.8% in the last month.

SECTION 3: Ranking

DescriptionValueRank In Market
MCap $US billion15.3In Top 6%
52-week Range (in $US)39.8-56.1
1-month Range (in $US)51.5-56.1

SECTION 4: Earnings

FY2016 Annual Report: Fastenal Net Profit down 3.3%

Fastenal (NASDAQ:FAST) reported net profit for the year-ended 31 December 2016 of $US499m, down 3.3% from $US516m in the previous year.

Major changes compared with previous year:

Favourable Changes:

- Sales revenue up 2.4% from $US3.9b to $US4.0b

- Current ratio up 39.9% from 4.5 to 6.2

- Working capital to total assets up from 51.0% to 54.1%

- Total non-current assets to Total Assets up from 34.3% to 35.5%

- Fixed Assets to Total Assets up from 32.3% to 33.7%

- Total Liabilities to EBITDA of 0.9 compares favourably with the Joseph Piotroski benchmark of less than 5. - Total Liabilities to Operating Cash Flow of 1.4 compares favourably with the Joseph Piotroski benchmark of less than 4. However, it has deteriorated by 6.7% from the previous year's ratio of 1.3.

- Net tangible assets per share up 8.4% from $US6.17 to $US6.69

Unfavourable Changes:

- Net profit down 3.3% from $US516.4m to $US499.5m

- EPS down 2.3% from $US1.77 to $US1.73

- EBIT Margin down from 21.4% to 20.1%

- Interest cover down 54.1% from 266.8 to 122.4

- EBIT to total assets down from 32.7% to 29.8%

- Profit before tax to Sales down from 21.3% to 19.9%

- Interest expenses to Sales up from 0.1% to 0.2%

Note:

- Total revenue to total assets steady at 1.5

- Cost of Goods Sold to Sales up from 49.6% to 50.4%

- Administration expenses to Sales up from 29% to 29.5%

- Tax expenses to Sales down from 8% to 7.3%

- Total liabilities to Total assets steady at 0.3

- Retained earnings to total assets steady at 72.7%

- Total current assets to Total Assets down from 65.7% to 64.5%

- Current Inventory to Total Assets up from 36.1% to 37.2%

- Current Debtors to Total Assets up from 18.5% to 18.7%

SECTION 5: Recent Reported Buying

January 03: Fastenal insider awarded Employee Stock Options

Fastenal (NASDAQ:FAST) insider Leland J. Hein, has been awarded Employee Stock Options on 15,636 shares at an exercise price of $US55.0. The transaction date was January 02. The shares last traded at $US54.56.

January 03: Fastenal insider awarded Employee Stock Options

Fastenal (NASDAQ:FAST) insider John L. Soderberg, has been awarded Employee Stock Options on 8,181 shares at an exercise price of $US55.0. The transaction date was January 02. The shares last traded at $US54.56.

January 03: Fastenal insider awarded Employee Stock Options

Fastenal (NASDAQ:FAST) insider Holden Lewis, has been awarded Employee Stock Options on 10,000 shares at an exercise price of $US55.0. The transaction date was January 02. The shares last traded at $US54.56.

January 03: Fastenal director awarded Employee Stock Options

Fastenal (NASDAQ:FAST) director Daniel L. Florness, has been awarded Employee Stock Options on 40,909 shares at an exercise price of $US55.0. The transaction date was January 02. The shares last traded at $US54.56.

January 03: Fastenal insider awarded Employee Stock Options

Fastenal (NASDAQ:FAST) insider James C. Jansen, has been awarded Employee Stock Options on 8,181 shares at an exercise price of $US55.0. The transaction date was January 02. The shares last traded at $US54.56.

SECTION 6: Recent News of Fastenal

January 17: Fastenal Company Reports 2017 Annual and Fourth Quarter Earnings

WINONA, Minn., Jan. 17, 2018 -- Fastenal Company (Nasdaq:FAST), a leader in the wholesale distribution of industrial and construction supplies, today announced its financial results for the quarter and year ended December 31, 2017. Except for share and per share information, or as otherwise noted below, dollar amounts are stated in millions.

January 16: Fastenal announces dividend

Fastenal today announced a quarterly dividend of 37.0c per share. The record date is Wednesday, January 31, 2018 and it is payable on Tuesday, February 27.

Fastenal Company (O:FAST)

ISIN: US3119001044

PermID: 4295906431

CIK: 815556

CUSIP: 311900104

Source: www.BuySellSignals.com