Hsenghung Hsu, a director at Fastenal (FAST), recently bought 1,000 shares. The buy increased his position by 33%, and came to a total cost of $63,115.
This marks the first insider buy since April, when another director bought 3,350 shares, paying just over $229,000. A few executives have been sellers year-to-date, largely at the EVP level, and all sales have occurred following the exercise of stock options.
Overall, Fastenal insiders own 0.2% of shares.
The construction supply manufacturer and distributor is up 14% over the past year, far lagging the overall stock market.
While Fastenal sports a 16% profit margin, a healthy level for its industry, earnings and revenues both rose by less than 2% last year. And shares trade at about 30 times earnings, a bit pricey compared to the overall market right now.
However, Fastenal shares have now slid nearly 20% from their March peak, and are starting to show signs of a turnaround.
Action to take: Investors may like shares here, as a turnaround could lead to low double-digit gains in the span of a few weeks. At current prices, Fastenal also pays a 2.4% dividend.
For traders, shares could see a quick boost on a short-term rally higher. The August $67.50 calls, last trading for about $1.30, could see mid-to-high double-digit returns over the coming weeks.
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 company mentioned in this article.