Neuberger Berman Increases Stake in Fastenal to $3.70 Million
Neuberger Berman Group LLC significantly expanded its investment in Fastenal Company, increasing its holdings by 112.8% during the second quarter of 2023. According to a recent filing with the Securities and Exchange Commission (SEC), the firm now owns 88,153 shares of Fastenal, valued at approximately $3.70 million. This increase followed the acquisition of an additional 46,737 shares during the quarter.
The move by Neuberger Berman is part of a broader trend among institutional investors, with several other firms adjusting their stakes in Fastenal. For instance, Integrated Wealth Concepts LLC raised its investment by 2.4% in the first quarter, now holding 6,276 shares valued at $487,000. Similarly, Advisory Alpha LLC increased its holdings by 5.8%, owning 3,407 shares worth $264,000 after adding 187 shares recently.
Riverview Trust Co and Private Wealth Management Group LLC also boosted their positions in Fastenal. Riverview Trust doubled its stake, now owning 584 shares valued at $25,000, while Private Wealth Management added 339 shares, increasing its total to 642 shares worth $27,000. AdvisorNet Financial Inc similarly increased its position by 95.0%, now owning 702 shares valued at $29,000. Overall, institutional investors now hold 81.38% of Fastenal’s stock.
In related news, Fastenal’s director, Sarah N. Nielsen, purchased 1,000 shares on November 19, 2023, at an average price of $39.60 per share, amounting to $39,600. This acquisition raised her total holdings to 5,000 shares, valued at $198,000. Another director, Hsenghung Sam Hsu, also bought 1,000 shares on November 13, 2023, for a total of $49,580, increasing his shares to 10,000, worth $495,800.
Fastenal’s performance on the stock market remains noteworthy. On Monday, shares opened at $42.01, with a 12-month range between $35.31 and $50.63. The company boasts a market capitalization of $48.23 billion and a price-to-earnings (P/E) ratio of 39.26. Additionally, Fastenal’s recent earnings report, released on October 14, 2023, showed earnings of $0.29 per share, slightly below the consensus estimate of $0.30.
Despite this slight miss, Fastenal reported revenue of $2.13 billion, matching analysts’ expectations. The company’s net margin stands at 15.34%, with a return on equity of 32.69%. Year-over-year, revenue increased by 11.7%, compared to $0.26 earnings per share in the same quarter last year. Analysts predict that Fastenal will post an earnings per share of 2.15 for the current year.
In addition to these developments, Fastenal declared a quarterly dividend of $0.22 per share, which was distributed on November 25, 2023. Shareholders recorded as of October 28, 2023 received this dividend, reflecting an annualized dividend of $0.88 and a yield of 2.1%. The company’s dividend payout ratio currently stands at 82.24%.
Fastenal Company operates as a wholesale distributor of industrial and construction supplies across North America and internationally. It specializes in fasteners and related products essential for manufacturing and construction projects. As the company continues to grow, it remains a focal point for both institutional investors and market analysts alike.
