Major Decision: James Jansen Exercises Options, Realizing $1.20M At Fastenal

Highlighted on November 26, it was unveiled in an SEC filing that Jansen, Executive Vice President at Fastenal FAST, executed a significant transaction involving the exercise of company stock options.

What Happened: Disclosed in a Form 4 filing on Tuesday with the U.S. Securities and Exchange Commission, Jansen, Executive Vice President at Fastenal, executed a strategic derivative sale. This involved exercising stock options for 19,564 shares of FAST, resulting in a transaction value of $1,195,360.

As of Wednesday morning, Fastenal shares are down by 0.0%, with a current price of $84.1. This implies that Jansen's 19,564 shares have a value of $1,195,360.

Discovering Fastenal: A Closer Look

Fastenal opened its first fastener store in 1967 in Winona, Minnesota. Since then, it has greatly expanded its footprint as well as its products and services. Today, Fastenal serves its 400,000 active customers through approximately 1,600 branches, over 1,800 on-site locations, and 15 distribution centers. Since 1993, the company has added other product categories, but fasteners remain its largest category at about 30%-35% of sales. Fastenal also offers customers supply chain solutions, such as vending and vendor-managed inventory.

A Deep Dive into Fastenal's Financials

Positive Revenue Trend: Examining Fastenal's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 3.48% as of 30 September, 2024, showcasing a substantial increase in top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Industrials sector.

Profitability Metrics:

• Gross Margin: The company excels with a remarkable gross margin of 44.95%, indicating superior cost efficiency and profitability compared to its industry peers.

• Earnings per Share (EPS): With an EPS below industry norms, Fastenal exhibits below-average bottom-line performance with a current EPS of 0.52.

Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.15.

Financial Valuation:

• Price to Earnings (P/E) Ratio: The current P/E ratio of 41.84 is below industry norms, indicating potential undervaluation and presenting an investment opportunity.

• Price to Sales (P/S) Ratio: With a relatively high Price to Sales ratio of 6.45 as compared to the industry average, the stock might be considered overvalued based on sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): With an impressive EV/EBITDA ratio of 28.48, Fastenal demonstrates exemplary market valuation, surpassing industry averages.

Market Capitalization: Exceeding industry standards, the company's market capitalization places it above industry average in size relative to peers. This emphasizes its significant scale and robust market position.

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Why Insider Activity Matters in Finance

Insider transactions contribute to decision-making but should be supplemented by a comprehensive investment analysis.

When discussing legal matters, the term "insider" refers to any officer, director, or beneficial owner holding more than ten percent of a company's equity securities, as stipulated in Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and significant hedge funds. Such insiders are required to report their transactions through a Form 4 filing, which must be completed within two business days of the transaction.

A new purchase by a company insider is a indication that they anticipate the stock will rise.

On the other hand, insider sells may not necessarily indicate a bearish view and can be motivated by various factors.

Understanding Crucial Transaction Codes

Examining transactions, investors often concentrate on those unfolding in the open market, meticulously detailed in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies a sale. Transaction code C indicates the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.

Check Out The Full List Of Fastenal's Insider Trades.

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This article was generated by Benzinga's automated content engine and reviewed by an editor.