Snap-On Incorporated (NYSE:SNA) Stock Rated "Moderate Buy" by Sell-Side Brokerages

Key Points

• Analyst sentiment is favorable: Snap-On has a “Moderate Buy” consensus, with four buy ratings and one hold; the average 12-month price target is $434, implying potential upside from its $357.53 share price.
• Recent quarterly results fell short of expectations: Snap-On reported $4.64 in EPS and $1.18 billion in revenue, missing estimates of $4.93 and $1.24 billion, respectively, while revenue declined 0.6% year over year.
• Shareholder returns remain substantial: The company pays a $2.44 quarterly dividend, equivalent to a 2.7% annualized yield, while institutional investors own 84.88% of outstanding shares.

Shares of Snap-On Incorporated (NYSE:SNA - Get Free Report) have been assigned an average rating of "Moderate Buy" from the five brokerages that are covering the company, MarketBeat Ratings reports. One equities research analyst has rated the stock with a hold rating and four have assigned a buy rating to the company. The average 12 month target price among brokerages that have updated their coverage on the stock in the last year is $434.00.

A number of analysts recently issued reports on the company. Robert W. Baird set a $385.00 price objective on Snap-On in a research note on Friday. Tigress Financial raised their target price on Snap-On from $445.00 to $485.00 and gave the stock a "buy" rating in a research note on Friday, July 31st. Barclays cut their target price on Snap-On from $435.00 to $405.00 and set an "overweight" rating for the company in a research note on Monday. Weiss Ratings reaffirmed a "buy (b)" rating on shares of Snap-On in a report on Thursday, October 15th. Finally, Roth Capital reiterated a "buy" rating and set a $461.00 price target (up from $409.00) on shares of Snap-On in a research report on Friday, July 24th.

Snap-On Trading Up 0.1%

Shares of SNA stock opened at $357.53 on Tuesday. The stock has a market capitalization of $18.44 billion, a price-to-earnings ratio of 18.59, a PEG ratio of 2.40 and a beta of 0.71. The company's fifty day simple moving average is $374.77 and its two-hundred day simple moving average is $380.19. Snap-On has a 1 year low of $320.80 and a 1 year high of $423.02. The company has a debt-to-equity ratio of 0.14, a current ratio of 3.55 and a quick ratio of 2.71.

Snap-On (NYSE:SNA - Get Free Report) last posted its quarterly earnings results on Thursday, October 22nd. The company reported $4.64 EPS for the quarter, missing analysts' consensus estimates of $4.93 by ($0.29). Snap-On had a return on equity of 16.77% and a net margin of 20.82%. The company had revenue of $1.18 billion during the quarter, compared to the consensus estimate of $1.24 billion. During the same period in the previous year, the business earned $4.71 earnings per share. Snap-On's revenue was down .6% on a year-over-year basis. As a group, analysts anticipate that Snap-On will post 19.50 earnings per share for the current year.

Snap-On Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Thursday, September 10th. Stockholders of record on Wednesday, August 19th were given a $2.44 dividend. This represents a $9.76 dividend on an annualized basis and a dividend yield of 2.7%. The ex-dividend date was Wednesday, August 19th. Snap-On's dividend payout ratio (DPR) is 50.75%.

Insider Activity

In related news, VP Marty V. Ozolins sold 800 shares of the business'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 transaction, the vice president owned 1,526 shares of the company's stock, valued at approximately $610,400. The trade was a 34.39% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Aldo Pagliari sold 5,531 shares of the company's stock in a transaction that occurred on Thursday, August 13th. The stock was sold at an average price of $404.25, for a total transaction of $2,235,906.75. Following the sale, the chief financial officer directly owned 120,644 shares in the company, valued at $48,770,337. This trade represents a 4.38% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders sold 29,220 shares of company stock worth $11,704,411. 3.80% of the stock is owned by company insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in SNA. Independence Bank of Kentucky purchased a new stake in shares of Snap-On in the third quarter worth $29,000. Viewpoint Investment Partners Corp boosted its stake in Snap-On by 50.0% during the third quarter. Viewpoint Investment Partners Corp now owns 900 shares of the company's stock valued at $327,000 after buying an additional 300 shares during the period. V Square Quantitative Management LLC grew its position in Snap-On by 13.5% during the third quarter. V Square Quantitative Management LLC now owns 1,542 shares of the company's stock worth $560,000 after buying an additional 184 shares in the last quarter. YANKCOM Partnership grew its position in Snap-On by 23.6% during the third quarter. YANKCOM Partnership now owns 1,537 shares of the company's stock worth $558,000 after buying an additional 293 shares in the last quarter. Finally, Wealth Enhancement Trust Services Inc. purchased a new stake in shares of Snap-On in the 3rd quarter valued at about $100,000. 84.88% of the stock is currently owned by hedge funds and other institutional investors.

About Snap-On

Snap-on Incorporated is a manufacturer and distributor of professional tools, equipment, diagnostics, and related services. Its offerings include hand and power tools, tool storage, vehicle repair equipment, diagnostic systems, and repair information and management software. The company serves professional users who work in automotive repair, heavy-duty transportation, aviation, agriculture, construction, industrial production, government, and other technical fields.

Snap-on markets products under the Snap-on brand and other brands, including Blue-Point, Bahco, and Williams.

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