Is It Time To Get Out of Fastenal Company (FAST)?

Page 2 of 2

Due to the fact that Fastenal Company (NASDAQ:FAST) has experienced bearish sentiment from hedge fund managers, we can see that there exists a select few hedgies that decided to sell off their positions entirely last quarter. Intriguingly, Dmitry Balyasny’s Balyasny Asset Management said goodbye to the largest investment of the 700 funds tracked by Insider Monkey, totaling close to $10.8 million in call options, and Ken Griffin’s Citadel Investment Group was right behind this move, as the fund dumped about $8.1 million worth of shares. These moves are important to note, as aggregate hedge fund interest fell by 1 fund last quarter.

Let’s now review hedge fund activity in other stocks similar to Fastenal Company (NASDAQ:FAST). We will take a look at MGM Resorts International (NYSE:MGM), Marathon Oil Corporation (NYSE:MRO), National-Oilwell Varco, Inc. (NYSE:NOV), and Macerich Co (NYSE:MAC). All of these stocks’ market caps are similar to FAST’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
MGM 53 2300675 -6
MRO 22 213779 -4
NOV 25 329212 1
MAC 19 272669 -1

As you can see these stocks had an average of 29.75 hedge funds with bullish positions and the average amount invested in these stocks was $779 million. That figure was $625 million in FAST’s case. MGM Resorts International (NYSE:MGM) is the most popular stock in this table. On the other hand Macerich Co (NYSE:MAC) is the least popular one with only 19 bullish hedge fund positions. Fastenal Company (NASDAQ:FAST) is not the least popular stock in this group but hedge fund interest is still below average. This is a slightly negative signal and we’d rather spend our time researching stocks that hedge funds are piling on. In this regard MGM might be a better candidate to consider a long position in.

Disclosure: None

Page 2 of 2