Fastenal Shares Surpass Analyst Target Price—What’s Next?
In recent trading, shares of Fastenal Co. (Symbol: FAST) rose above the average analyst 12-month target price of $78.64, currently priced at $80.64 per share. When a stock reaches its predicted target by analysts, they typically have two options: either downgrade the stock on valuation or adjust the target price higher. The decision may hinge on the company’s fundamental business developments, which might justify a price adjustment upwards.
Analyst Consensus and Target Ranges
There are 11 different analyst targets tracked within the Zacks coverage universe that contribute to the average for Fastenal Co. However, this average is only a mathematical computation. Notably, some analysts favor more conservative targets, with one setting a price at $70.00. Conversely, an optimistic analyst has set a target as high as $88.00, reflecting a standard deviation of $5.886.
Understanding the Analyst Average
The purpose of examining the average FAST price target is to harness a “wisdom of crowds” approach. This method aggregates the insights of multiple analysts rather than relying on a single expert opinion. As FAST surpasses the average target price of $78.64 per share, it prompts investors to evaluate the company’s future prospects. Is this mark just a stepping stone toward a higher target, or has the valuation reached a point where it is prudent to consider taking profits? Below is a summary of current analyst thoughts on Fastenal Co.:
| Recent FAST Analyst Ratings Breakdown | ||||
|---|---|---|---|---|
| » | Current | 1 Month Ago | 2 Months Ago | 3 Months Ago |
| Strong buy ratings: | 3 | 3 | 2 | 2 |
| Buy ratings: | 0 | 0 | 0 | 0 |
| Hold ratings: | 10 | 10 | 11 | 11 |
| Sell ratings: | 0 | 0 | 0 | 0 |
| Strong sell ratings: | 1 | 2 | 2 | 2 |
| Average rating: | 2.71 | 2.87 | 3.0 | 3.0 |
The average rating shown above ranges from 1 to 5, with 1 being Strong Buy and 5 being Strong Sell. This analysis utilized data provided by Zacks Investment Research via Quandl.com. For the latest Zacks research report on FAST at no cost, visit the provided link.
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Also see:
• Stock Splits
• ENBL YTD Return
• LTH shares outstanding history
The views and opinions expressed herein are those of the author and do not necessarily reflect the views of Nasdaq, Inc.
