Fifth Third Bancorp Increases Stake in Snap-On Incorporated $SNA

Key Points

• Fifth Third Bancorp increased its Snap-On stake by 196% in the first quarter, buying 18,554 additional shares to bring its total holding to 28,022 shares, worth about $10.2 million.
• Snap-On reported mixed quarterly results: earnings per share of $4.69 missed estimates, while revenue of $1.21 billion came in slightly above expectations and rose 5.8% year over year.
• The company announced a $500 million share repurchase program and paid a quarterly dividend of $2.44 per share, equal to a 2.4% annualized yield.

Fifth Third Bancorp boosted its position in Snap-On Incorporated (NYSE:SNA - Free Report) by 196.0% in the 1st quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The fund owned 28,022 shares of the company's stock after purchasing an additional 18,554 shares during the period. Fifth Third Bancorp owned approximately 0.05% of Snap-On worth $10,178,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

A number of other large investors have also recently made changes to their positions in SNA. Thurston Springer Miller Herd & Titak Inc. purchased a new stake in shares of Snap-On in the 4th quarter worth $25,000. DV Equities LLC bought a new stake in shares of Snap-On in the 4th quarter valued at about $25,000. GoalVest Advisory LLC acquired a new stake in Snap-On in the fourth quarter valued at approximately $28,000. Montag A & Associates Inc. boosted its position in shares of Snap-On by 331.8% in the 4th quarter. Montag A & Associates Inc. now owns 95 shares of the company's stock worth $33,000 after purchasing an additional 73 shares in the last quarter. Finally, Quattro Advisors LLC purchased a new stake in shares of Snap-On during the fourth quarter worth about $35,000. 84.88% of the stock is owned by hedge funds and other institutional investors.

Snap-On Price Performance

Snap-On stock opened at $404.86 on Wednesday. The stock has a market cap of $20.97 billion, a P/E ratio of 20.90, a PEG ratio of 2.82 and a beta of 0.73. The company has a current ratio of 3.53, a quick ratio of 2.74 and a debt-to-equity ratio of 0.15. The company has a 50-day moving average price of $383.85 and a 200 day moving average price of $375.41. Snap-On Incorporated has a 12-month low of $310.23 and a 12-month high of $414.62.

Snap-On (NYSE:SNA - Get Free Report) last issued its quarterly earnings data on Thursday, April 23rd. The company reported $4.69 earnings per share for the quarter, missing the consensus estimate of $4.75 by ($0.06). Snap-On had a return on equity of 17.13% and a net margin of 21.28%.The business had revenue of $1.21 billion during the quarter, compared to analysts' expectations of $1.19 billion. During the same quarter in the previous year, the company posted $4.51 earnings per share. The company's revenue was up 5.8% on a year-over-year basis. Sell-side analysts anticipate that Snap-On Incorporated will post 19.7 earnings per share for the current year.

Snap-On declared that its Board of Directors has initiated a share repurchase program on Thursday, April 30th that permits the company to repurchase $500.00 million in shares. This repurchase authorization permits the company to reacquire up to 2.5% of its stock through open market purchases. Stock repurchase programs are usually a sign that the company's leadership believes its shares are undervalued.

Snap-On Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Wednesday, June 10th. Stockholders of record on Wednesday, May 20th were issued a $2.44 dividend. This represents a $9.76 annualized dividend and a dividend yield of 2.4%. The ex-dividend date was Wednesday, May 20th. Snap-On's dividend payout ratio is currently 50.39%.

Insider Transactions at Snap-On

In other news, CFO Aldo John Pagliari sold 5,713 shares of the firm's stock in a transaction on Thursday, May 14th. The stock was sold at an average price of $367.19, for a total transaction of $2,097,756.47. Following the completion of the transaction, the chief financial officer directly owned 119,488 shares in the company, valued at $43,874,798.72. This trade represents a 4.56% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, SVP Jesus Arregui sold 4,251 shares of the firm's stock in a transaction dated Wednesday, June 10th. The shares were sold at an average price of $383.92, for a total value of $1,632,043.92. Following the transaction, the senior vice president owned 4,439 shares of the company's stock, valued at $1,704,220.88. This trade represents a 48.92% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 37,117 shares of company stock valued at $14,003,922 over the last three months. 3.80% of the stock is currently owned by company insiders.

Analysts Set New Price Targets

SNA has been the topic of a number of research analyst reports. Weiss Ratings reissued a "buy (b)" rating on shares of Snap-On in a report on Monday, April 20th. Roth Capital reaffirmed a "buy" rating and set a $431.00 price objective on shares of Snap-On in a research note on Friday, April 24th. Robert W. Baird lifted their price target on Snap-On from $380.00 to $395.00 and gave the company a "neutral" rating in a research note on Friday, April 24th. Finally, Barclays started coverage on shares of Snap-On in a report on Thursday, May 28th. They issued an "overweight" rating and a $420.00 price target for the company. Five equities research analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and a consensus price target of $387.67.

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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