Korea Investment CORP Invests $8.35 Million in Snap-On Incorporated $SNA

Key Points

• Korea Investment CORP acquired 20,743 Snap-On shares worth approximately $8.35 million in the second quarter. Institutional investors own 84.88% of the company.
• Snap-On exceeded quarterly earnings and revenue expectations, reporting $4.96 EPS and $1.24 billion in revenue, up 4.7% year over year. The company also declared a $2.44 quarterly dividend and authorized a $500 million share-repurchase program.
• Analysts maintain a “Moderate Buy” consensus rating with a $426.20 price target, while company insiders have sold 45,928 shares worth about $18.5 million over the past 90 days.

Korea Investment CORP bought a new stake in shares of Snap-On Incorporated (NYSE:SNA - Free Report) in the 2nd quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The institutional investor bought 20,743 shares of the company's stock, valued at approximately $8,347,000.

Several other institutional investors and hedge funds have also bought and sold shares of the stock. Vanguard Group Inc. grew its holdings in shares of Snap-On by 0.5% in the fourth quarter. Vanguard Group Inc. now owns 6,525,488 shares of the company's stock worth $2,248,683,000 after purchasing an additional 31,073 shares during the last quarter. BlackRock Inc. bought a new stake in Snap-On during the 2nd quarter valued at $1,715,363,000. State Street Corp boosted its position in Snap-On by 1.3% during the 4th quarter. State Street Corp now owns 2,272,041 shares of the company's stock valued at $782,945,000 after buying an additional 28,071 shares during the period. First Trust Advisors LP grew its holdings in Snap-On by 3.3% in the 1st quarter. First Trust Advisors LP now owns 2,033,129 shares of the company's stock worth $738,473,000 after acquiring an additional 65,521 shares during the last quarter. Finally, Charles Schwab Investment Management Inc. increased its position in shares of Snap-On by 2.0% in the fourth quarter. Charles Schwab Investment Management Inc. now owns 2,011,914 shares of the company's stock valued at $693,306,000 after acquiring an additional 39,765 shares during the period. 84.88% of the stock is currently owned by institutional investors.

Snap-On Price Performance

Shares of SNA opened at $394.54 on Tuesday. Snap-On Incorporated has a twelve month low of $319.20 and a twelve month high of $423.02. The company has a market capitalization of $20.41 billion, a P/E ratio of 20.12, a price-to-earnings-growth ratio of 2.77 and a beta of 0.73. The firm has a 50 day moving average of $403.46 and a 200 day moving average of $384.77. The company has a quick ratio of 2.64, a current ratio of 3.43 and a debt-to-equity ratio of 0.15.

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

Snap-On Announces Dividend

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

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

Analyst Ratings Changes

A number of analysts have recently weighed in on SNA shares. Barclays started coverage on shares of Snap-On in a report on Thursday, May 28th. They set an "overweight" rating and a $420.00 target price for the company. Tigress Financial increased their price objective on Snap-On from $445.00 to $485.00 and gave the stock a "buy" rating in a report on Friday, July 31st. Roth Capital reiterated 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. Robert W. Baird set a $415.00 target price on Snap-On in a research note on Friday, July 24th. Finally, Weiss Ratings restated a "buy (b)" rating on shares of Snap-On in a report on Friday, July 17th. Five research analysts have rated the stock with a Buy rating and one has issued a Hold rating to the stock. According to MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and a consensus price target of $426.20.

Insider Buying and Selling at Snap-On

In related news, CFO Aldo John Pagliari sold 5,531 shares of Snap-On stock in a transaction on Thursday, August 13th. The stock was sold at an average price of $404.25, for a total value of $2,235,906.75. Following the completion of the sale, the chief financial officer owned 120,644 shares of the company's stock, valued at $48,770,337. The trade was a 4.38% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, SVP Jesus Arregui sold 4,251 shares of the 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 completion of the transaction, the senior vice president directly owned 4,439 shares in the company, valued at approximately $1,704,220.88. This represents a 48.92% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last 90 days, insiders sold 45,928 shares of company stock worth $18,483,009. 3.80% of the stock is owned by corporate insiders.

Snap-On 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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