Snap-On Incorporated (NYSE:SNA) Receives Average Rating of "Moderate Buy" from Brokerages

Key Points

• Snap-On has a “Moderate Buy” consensus rating: Five of six covering analysts recommend buying the stock, with an average 12-month price target of $426.20 versus its reported opening price of $382.90.
• The company exceeded quarterly expectations, reporting $4.96 in EPS and $1.24 billion in revenue, with revenue up 4.7% year over year.
• Snap-On declared a quarterly dividend of $2.44 per share, equivalent to an annualized $9.76 dividend and a 2.5% yield; insiders have sold $18.3 million worth of shares over the past three months.

Shares of Snap-On Incorporated (NYSE:SNA - Get Free Report) have been assigned an average recommendation of "Moderate Buy" from the six brokerages that are presently covering the company, Marketbeat reports. One equities research analyst has rated the stock with a hold recommendation and five have issued a buy recommendation on the company. The average 1 year price target among brokerages that have covered the stock in the last year is $426.20.

A number of research firms have commented on SNA. Roth Capital reiterated a "buy" rating and issued a $461.00 price objective (up from $409.00) on shares of Snap-On in a report on Friday, July 24th. Tigress Financial upped their price target on Snap-On from $445.00 to $485.00 and gave the company a "buy" rating in a research report on Friday, July 31st. Weiss Ratings reaffirmed a "buy (b)" rating on shares of Snap-On in a report on Friday, July 17th. Barclays assumed coverage on Snap-On in a research report on Thursday, May 28th. They set an "overweight" rating and a $420.00 price objective on the stock. Finally, Robert W. Baird set a $415.00 price objective on Snap-On in a research note on Friday, July 24th.

Snap-On Trading Down 0.0%

Shares of SNA opened at $382.90 on Monday. Snap-On has a 52-week low of $320.80 and a 52-week high of $423.02. The company has a quick ratio of 2.64, a current ratio of 3.43 and a debt-to-equity ratio of 0.15. The firm's fifty day moving average is $403.10 and its two-hundred day moving average is $385.46. The stock has a market cap of $19.81 billion, a PE ratio of 19.53, a price-to-earnings-growth ratio of 2.69 and a beta of 0.72.

Snap-On (NYSE:SNA - Get Free Report) last issued its earnings results on Thursday, July 23rd. The company reported $4.96 EPS for the quarter, beating analysts' consensus estimates of $4.95 by $0.01. The business had revenue of $1.24 billion during the quarter, compared to analysts' expectations of $1.22 billion. Snap-On had a net margin of 21.25% and a return on equity of 17.07%. The company's quarterly revenue was up 4.7% compared to the same quarter last year. During the same period in the prior year, the business earned $4.72 earnings per share. Research analysts forecast that Snap-On will post 19.7 earnings per share for the current fiscal year.

Snap-On Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Thursday, September 10th. Stockholders of record on Wednesday, August 19th will be given a dividend of $2.44 per share. The ex-dividend date of this dividend is Wednesday, August 19th. This represents a $9.76 annualized dividend and a dividend yield of 2.5%. Snap-On's payout ratio is presently 49.77%.

Insider Transactions at Snap-On

In other news, VP Marty V. Ozolins sold 800 shares of the firm's stock in a transaction that occurred on Wednesday, August 26th. The shares were sold at an average price of $400.00, for a total transaction of $320,000.00. Following the completion of the sale, the vice president owned 1,526 shares in the company, valued at $610,400. This trade represents a 34.39% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Nicholas T. Pinchuk sold 22,889 shares of Snap-On stock in a transaction that occurred on Tuesday, August 18th. The shares were sold at an average price of $399.69, for a total transaction of $9,148,504.41. Following the sale, the chief executive officer directly owned 867,779 shares in the company, valued at approximately $346,842,588.51. The trade was a 2.57% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 45,398 shares of company stock valued at $18,298,580 in the last three months. 3.80% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Snap-On

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. DV Equities LLC purchased a new position in shares of Snap-On during the 4th quarter worth $25,000. Western Wealth Management LLC purchased a new stake in Snap-On in the 1st quarter valued at about $29,000. Quattro Advisors LLC acquired a new position in Snap-On in the fourth quarter valued at about $35,000. Annis Gardner Whiting Capital Advisors LLC boosted its stake in Snap-On by 36.4% during the fourth quarter. Annis Gardner Whiting Capital Advisors LLC now owns 105 shares of the company's stock worth $36,000 after buying an additional 28 shares during the period. Finally, Manchester Capital Management LLC boosted its stake in Snap-On by 152.4% during the fourth quarter. Manchester Capital Management LLC now owns 106 shares of the company's stock worth $37,000 after buying an additional 64 shares during the period. Institutional investors and hedge funds own 84.88% of the company's stock.

About Snap-On

Snap‑On Incorporated NYSE: SNA is a designer, manufacturer and marketer of tools, diagnostic equipment, repair information and shop equipment for professional users. The company's product range includes hand and power tools, tool storage and cabinets, diagnostic scan tools and software, shop equipment such as lifts and tire changers, and specialized specialty tools for automotive, aviation, marine and industrial applications. Snap‑On also offers information and workflow solutions that combine diagnostic data, repair procedures and parts information to support professional technicians.

Founded in 1920 and headquartered in Kenosha, Wisconsin, Snap‑On has established a long history in the professional tools market.

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