Fastenal announces two-for-one stock split

WINONA, Minn. - Fastenal Company (NASDAQ:FAST), a major distributor of industrial and construction supplies with a market capitalization of $46 billion and an impressive InvestingPro Financial Health score of "GREAT," declared on Wednesday that its board of directors has sanctioned a two-for-one stock split. The split is slated to be implemented through an amendment to the company’s charter, effectively doubling the number of shares owned by investors.

Stockholders on record as of the close of business on May 5, 2025, will be eligible to receive an additional share for each share they currently hold. The stock split is expected to be executed at the close of business on May 21, 2025. Following the split, Fastenal’s common stock, currently trading at $80.17 with a year-to-date return of 13.91%, is anticipated to commence trading on a split-adjusted basis around May 22, 2025.

This move will also proportionally increase the total number of authorized shares of Fastenal’s common stock. The decision to split the stock comes as Fastenal continues to expand its global footprint, with over 3,500 in-market locations across 25 countries. The company is known for providing a wide range of products, including fasteners, safety products, and metal cutting products, to various sectors such as manufacturing, construction, and government.

Fastenal’s approach combines local expertise with customer-facing technology and comprehensive services to offer customers solutions aimed at reducing costs, risks, and scalability challenges in their supply chains.

The information provided in this article is based on a press release statement from Fastenal Company. The stock split is a common financial action that companies undertake, which can potentially make shares more accessible to a broader base of investors by lowering the price per share, although the market capitalization of the company remains unchanged. According to InvestingPro analysis, Fastenal is currently trading above its Fair Value, with 13 additional key insights available to subscribers through the comprehensive Pro Research Report.

In other recent news, Fastenal Company reported its first-quarter 2025 earnings, meeting analysts’ expectations with an earnings per share (EPS) of $0.52 and slightly surpassing revenue forecasts with $1.96 billion. The company’s revenue reflected a 3.4% year-over-year increase, while daily sales grew by 5%, marking the strongest growth since Q2 2023. Despite a decline in operating and gross margins, Fastenal maintained a robust operating margin of 20.1%. In addition, the company announced plans for future pricing actions expected to positively impact revenue, projecting a 3-4% increase in Q2. Raymond James recently reiterated an Underperform rating on Fastenal’s stock, expressing concerns over the company’s valuation and reliance on new site openings for growth. The analyst from Raymond James highlighted the potential risks associated with the company’s ambitious sales growth projections, given the challenging market conditions and tariff uncertainties. Fastenal’s strategic initiatives, including expanding its digital sales footprint, are part of its efforts to navigate these challenges and maintain investor confidence.

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