Fastenal (FAST - Get Report) was declining in premarket trading Monday after Raymond James analyst Samuel Darkatsh cut his recommendation on Fastenal to market perform from strong buy after the stock soared Friday following an earnings beat.
Darkatsch cited valuation for his ratings cut with Fastenal shares approaching his prior price target.
The stocked jumped more than 17% on Friday to $36.34 after the industrial and construction supply company beat Wall Street's third-quarter earnings and sales expectations.
The Winona, Minnesota-based company reported net income of $213.5 million, or 37 cents a share, up from $197.6 million, or 34 cents a share, a year earlier. Wall Street was calling for earnings of 36 cents.
Sales increased 7.8% to $1.38 billion, beating analysts' calls for $1.37 billion.
Fastenal said the sales increase was spurred by higher unit sales related primarily to growth drivers suh as higher unit sales and Onsite locations. Sales also were driven by higher product pricing introduced late last year and throughout 2019 to offset the impacts of general and tariff-related inflation.
The stock fell 2% to $35.60 in premarket trading Monday.
Stephens analyst Blake Hirschman also cut his recommendation on Fastenal to equal-weight from overweight.