FAST Slows Down After Morgan Stanley Bear Note

Bearish sentiment has already been mounting

Deputy Editor
Jun 15, 2021 at 10:44 AM
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The shares of Fastenal Company (NASDAQ:FAST) are down 2.8% at $51.25 this morning, following a bear note from Morgan Stanley. The analyst slashed its price target to $48 from $53, and downgraded the equity to "underweight" from "equal weight."  

Today's dip has FAST looking to breach its 50-day moving average -- a trendline that's held up the equity since March. The stock just hit a record high of $54.32 on May 10, and has been consolidating below the $53.50 level ever since. Year-over-year, FAST is up roughly 26%.

Analysts were already hesitant on Fastenal stock heading into today. Of the 12 in coverage, just two called the security a "strong buy," while the remaining 10 said "hold" or worse. Plus, the 12-month consensus price target of $51.25 is a mere 0.3% premium to current levels. 

Option traders have also taken a bearish approach to Fastenal. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), 1.52 puts have been picked up for every call during the past 10 weeks. This ratio stands higher than all other readings from the past year, suggesting long puts haven't been more popular during this time period. 

 

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