8-KCorporate ChangesExhibits & Filings

FASTENAL CO 8-K Report, Bylaw Amendment (Apr 23, 2019)

Filed April 23, 2019For Securities:FAST

Summary

Fastenal Company (FAST) announced a significant corporate action through an 8-K filing on April 23, 2019, detailing a two-for-one stock split for its common stock. This move is designed to make the stock more accessible to a broader range of investors by lowering its per-share price. The split will take effect for shareholders of record as of May 2, 2019, with the effective date of the split being May 22, 2019. In conjunction with the stock split, Fastenal's Board of Directors also approved an amendment to the company's Restated Articles of Incorporation. This amendment will increase the authorized number of common shares from 405,000,000 to 800,000,000, and also authorize 5,000,000 shares of preferred stock, each with a par value of $0.01. This increase in authorized shares is primarily to accommodate the post-split share count and provide future flexibility.

Key Highlights

  • 1Fastenal Company announced a 2-for-1 stock split for its common stock.
  • 2Shareholders of record on May 2, 2019, will receive one additional share for each share owned.
  • 3The stock split is effective as of the close of business on May 22, 2019.
  • 4The company's Board of Directors approved an amendment to its Articles of Incorporation.
  • 5Authorized common shares will increase from 405,000,000 to 800,000,000.
  • 65,000,000 shares of preferred stock, par value $0.01, are now authorized.
  • 7The increase in authorized shares is to account for the stock split and provide future flexibility.

Frequently Asked Questions

A stock split, in this case a 2-for-1 split, means that for every share of Fastenal common stock you own, you will receive an additional share. Consequently, the number of shares you hold will double, and the price per share will be approximately halved. For example, if you owned 100 shares trading at $100 each, after the split, you would own 200 shares trading at approximately $50 each. The total value of your investment remains the same immediately after the split.

The stock split is effective at the close of business on May 22, 2019. To be eligible to receive the additional shares from the split, you must be a shareholder of record at the close of business on May 2, 2019.

Fastenal increased its authorized shares primarily to accommodate the higher number of shares outstanding after the 2-for-1 stock split. The amendment increases the authorized common stock from 405,000,000 to 800,000,000 shares. Authorizing additional shares also provides the company with flexibility for future corporate actions, such as potential acquisitions, stock-based compensation plans, or future equity offerings.

No, the stock split does not affect the par value of the shares. The par value for both common and preferred stock remains $0.01 per share. The split increases the number of shares outstanding and authorized, not the underlying value or nominal value of each share.