UPDATE: Fastenal Shares Slump 4.8% After 'neutral' Daily May Sales

By Ciara Linnane Markets MarketWatch Pulse

Shares of Fastenal Co. slumped 4.8% Tuesday to lead S&P 500 decliners, after the maker of fasteners, tools and supplies for manufacturers reported May daily sales that were slightly below some estimates. The company said daily sales rose 9.7% and were up 9.5% in the U.S. Macquarie analyst Hamzah Mazari said he was expecting a growth rate of about 10%, and said it was net neutral for the stock with historical sequential trends slightly weaker. "Recall, over the last five years, May sales usually are up sequentially ~2%, but note April was unusually strong (~8.9%) on a tougher comp," he wrote in a note. Macquarie rates Fastenal neutral with a $50 12-month stock price target, which is 17.5% above its current trading level. Fastenal shares have fallen 9.3% in 2017, while the S&P 500 has gained 9%.

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