Dearborn Partners LLC Makes New $34.07 Million Investment in Snap-On Incorporated $SNA

Key Points

• Dearborn Partners acquired 93,789 Snap-On shares worth approximately $34.07 million, making SNA 1.8% of its portfolio. Institutional investors and hedge funds collectively own 84.88% of the company.
• Analyst sentiment is favorable, with five Buy ratings and one Hold rating; the consensus is “Moderate Buy” with an average price target of $426.20, above the stock’s $394.54 opening price.
• Snap-On reported quarterly revenue of $1.24 billion and earnings of $4.96 per share, both slightly ahead of estimates. The company also declared a $2.44 quarterly dividend and authorized a $500 million share-repurchase program.

Dearborn Partners LLC acquired a new stake in shares of Snap-On Incorporated (NYSE:SNA - Free Report) during the second quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund acquired 93,789 shares of the company's stock, valued at approximately $34,066,000. Snap-On comprises approximately 1.8% of Dearborn Partners LLC's holdings, making the stock its 13th biggest holding. Dearborn Partners LLC owned about 0.18% of Snap-On as of its most recent SEC filing.

Several other hedge funds have also recently made changes to their positions in SNA. Miller Howard Investments Inc. NY purchased a new position in Snap-On during the 1st quarter worth approximately $51,244,000. QRG Capital Management Inc. boosted its holdings in shares of Snap-On by 9.9% in the 1st quarter. QRG Capital Management Inc. now owns 86,849 shares of the company's stock valued at $31,545,000 after acquiring an additional 7,798 shares during the last quarter. Fisher Asset Management LLC increased its stake in shares of Snap-On by 21.8% in the fourth quarter. Fisher Asset Management LLC now owns 66,017 shares of the company's stock worth $22,750,000 after acquiring an additional 11,808 shares during the period. Hsbc Holdings PLC raised its holdings in shares of Snap-On by 0.9% during the fourth quarter. Hsbc Holdings PLC now owns 374,236 shares of the company's stock worth $128,974,000 after purchasing an additional 3,321 shares during the last quarter. Finally, Sanctuary Advisors LLC lifted its position in Snap-On by 8.0% during the first quarter. Sanctuary Advisors LLC now owns 36,690 shares of the company's stock valued at $13,326,000 after purchasing an additional 2,714 shares during the period. 84.88% of the stock is owned by institutional investors and hedge funds.

Analysts Set New Price Targets

Several equities research analysts have commented on the stock. Weiss Ratings reaffirmed a "buy (b)" rating on shares of Snap-On in a report on Friday, July 17th. Tigress Financial upped 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. Robert W. Baird set a $415.00 target price on Snap-On in a report on Friday, July 24th. Roth Capital restated a "buy" rating and issued a $461.00 price objective (up from $409.00) on shares of Snap-On in a research report on Friday, July 24th. Finally, Barclays started coverage on shares of Snap-On in a research note on Thursday, May 28th. They issued an "overweight" rating and a $420.00 target price for the company. Five investment analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the company's stock. According to MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and an average target price of $426.20.

Insider Transactions at Snap-On

In other Snap-On news, CFO Aldo John Pagliari sold 5,531 shares of the company's stock in a transaction on Thursday, August 13th. The shares were sold at an average price of $404.25, for a total transaction of $2,235,906.75. Following the completion of the transaction, the chief financial officer owned 120,644 shares in the company, valued at approximately $48,770,337. This represents a 4.38% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Nicholas T. Pinchuk sold 22,889 shares of the firm's stock in a transaction dated 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 completion of the sale, the chief executive officer owned 867,779 shares of the company's stock, valued at approximately $346,842,588.51. The trade was a 2.57% 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. Insiders sold a total of 45,928 shares of company stock worth $18,483,009 over the last quarter. 3.80% of the stock is currently owned by corporate insiders.

Snap-On Stock Up 0.3%

SNA stock opened at $394.54 on Tuesday. Snap-On Incorporated has a 52 week low of $319.20 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 has a 50-day simple moving average of $403.46 and a 200-day simple moving average of $384.77. The stock has a market capitalization of $20.41 billion, a P/E ratio of 20.12, a P/E/G ratio of 2.77 and a beta of 0.73.

Snap-On (NYSE:SNA - Get Free Report) last issued its quarterly earnings results on Thursday, July 23rd. The company reported $4.96 earnings per share for the quarter, beating analysts' consensus estimates of $4.95 by $0.01. Snap-On had a net margin of 21.25% and a return on equity of 17.07%. The firm had revenue of $1.24 billion for the quarter, compared to analyst estimates of $1.22 billion. During the same period last year, the company posted $4.72 EPS. Snap-On's quarterly revenue was up 4.7% compared to the same quarter last year. Equities analysts forecast that Snap-On Incorporated 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. Shareholders 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 yield of 2.5%. Snap-On's payout ratio is 49.77%.

Snap-On declared that its board has authorized a stock repurchase plan on Thursday, April 30th that permits the company to repurchase $500.00 million in shares. This repurchase authorization permits the company to purchase up to 2.5% of its shares through open market purchases. Shares repurchase plans are often a sign that the company's board of directors believes its stock is undervalued.

Snap-On Company Profile

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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