We recently published a list of 15 Stocks With The Most Insider Sales In The Last Quarter. In this article, we are going to take a look at where Fastenal Company (NASDAQ:FAST) stands against other stocks with the most insider sales in the last quarter.
A veil of uncertainty has hung over Wall Street these past few weeks, and the cover seems even tighter as investors and economists hold their breath ahead of the Fed’s big announcement on Wednesday.
The Fed will reveal its interest rate decision, which will be followed by a press conference with Fed Chair Jerome Powell. Since September, the Fed has cut interest rates three times, and still, the broader market entered a correction. Many experts believe that interest rate cuts are off the table for this month and are focusing on the Fed officials’ ‘dot plot’ and future rate decisions, according to Yahoo Finance.
Amid these expectations, blue-chip companies dropped 0.62%, the broader market index declined 1.07%, and the NASDAQ Composite fell 1.71%, remaining in correction territory. NASDAQ Composite was dragged by some of the biggest gems in the tech sector.
Evercore ISI’s Julian Emanuel said that Powell should calm the market by assuring investors the economic growth is still healthy and that inflation is expected to move toward the Fed’s 2% target.
Scott Helfstein, Global X’s head of investment strategy noted that even though there are some risks to price stability and full employment “this is not time to sell and go away, but perhaps time to review long-term strategy against near-term volatility.”
As political and economic landscapes shift, some analysts remain optimistic about AI technology’s growth potential. Insider trading often draws attention during such times, as company executives have unique insights into their organizations. For example, when a CEO or CFO buys company stock, it may signal confidence in the company’s future.
However, insider selling doesn’t necessarily reflect a lack of faith in the company. It could be driven by personal financial needs or a desire to diversify assets. Executives often use pre-established plans, like 10b5-1 plans, to ensure transparency and avoid accusations of improper timing.
While insider trading can offer valuable clues, it’s crucial to consider it alongside factors like financial performance, market trends, and industry developments.
Our Methodology
We’ll focus on the stocks with the highest number of insider sales in the past quarter. Using Insider Monkey’s insider trading screener, we’ve identified stocks where at least five insiders made sales between October 1 and December 31. From this group, we’ve highlighted the 15 stocks with the most individual sales.
Our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds, focusing on insider trading and stock picks from hedge fund investor newsletters and conferences. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
For each stock, we provide details on the number of insider sales and the company’s current market capitalization.
A team of construction workers with their order of industrial supplies, on a construction site.
Fastenal Company (NASDAQ:FAST)
Number of Insiders Selling: 13
Market Capitalization: $43.63 billion
Fastenal Company (NASDAQ:FAST) distributes industrial and construction supplies in the United States, Canada, Mexico, and internationally. The Winona, Minnesota-based company offers threaded fasteners, bolts, nuts, screws, studs, and related washers that are used in manufactured products and construction projects and in the maintenance and repair of machines. As of the end of 2024, Fastenal operated 3,628 locations across 25 countries.
For the full year 2024, the company disclosed revenue of $7.55 billion, up from $7.35 billion in 2023. Gross profit amounted to $3.40 billion, compared to $3.35 billion in the prior year. In 2024, net cash provided by operating activities was $1,173.3, a decrease of 18.1% from 2023, representing 102.0% of the period’s net income versus 124.0% in 2023.
In October and November, 13 insiders, including the company’s CFO, sold a total of $23.98 million worth of Fastenal Company shares at an average price of $80.32 per share. Year-to-date, the stock gained 5.62% and is now trading at $75.95 per share. Over the past 12 months, Fastenal shares lost 0.34%.
According to five analysts, Fastenal Company (NASDAQ:FAST) stock has an average “Moderate Buy” rating with a price target of $79.00, writes TipRanks. The average price target suggests a 3.92% upside from the current price.
Fastenal Company (NASDAQ:FAST) is also one of the 12 best industrial distribution stocks to buy according to hedge funds.
Overall, FAST ranks 5th on our list of stocks with the most insider sales in the last quarter. While we acknowledge the potential of FAST, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than FAST but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires
Disclosure: None. This article is originally published at Insider Monkey.
