Holden Lewis, CFO at
Fastenal (FAST), recently added 1,000 shares. The buy increased his stake by nearly 12 percent, and came to a total price of just under $50,000.
He was joined by another EVP, who also picked up 1,000 shares on the same day for about the same price. This adds to further insider buys in recent months, from company executives and directors alike. Going back over the past three years, there has been a mix of insider buys and sells.
Overall, insiders own 0.2 percent of shares.
Like the rest of the market, shares have slid in recent sessions. The stock is now down about 6 percent over the past year. But the company’s valuation has gone from about 42 times earnings last year to 26 times earnings today.
The distributer of industrial and construction supplies has seen revenue rise by just over 20 percent in the past year, and earnings have increased nearly 28 percent.
Action to take: Shares will likely trend higher when the current economic uncertainty wanes. Shares offer a solid value right now, as long as a growing dividend with a starting yield just over 2.5 percent.
For traders, the January 2023 $50 calls, last going for about $6.90, offer mid-double-digit returns on a rebound in shares before the end of the year. Traders may want to buy part of a position now, then look to add to that position on any further down days in the weeks ahead.
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.