Norges Bank Acquires New Shares in Snap-On Incorporated $SNA

Key Points

• Norges Bank opened a new stake in Snap-On during the fourth quarter, buying 611,764 shares valued at about $210.8 million. The position represented roughly 1.18% of the company.
• Several other large institutions also boosted their holdings, and institutional investors now own 84.88% of Snap-On’s shares. That includes major increases from Vanguard, State Street, First Trust, and Nordea.
• Snap-On’s latest earnings showed revenue growth of 5.8% year over year, though EPS came in slightly below expectations. The company also announced a $500 million share repurchase plan and a quarterly dividend of $2.44 per share.

Norges Bank acquired a new stake in Snap-On Incorporated (NYSE:SNA - Free Report) in the fourth quarter, according to the company in its most recent 13F filing with the SEC. The institutional investor acquired 611,764 shares of the company's stock, valued at approximately $210,814,000. Norges Bank owned approximately 1.18% of Snap-On as of its most recent SEC filing.

A number of other large investors have also made changes to their positions in the company. Vanguard Group Inc. increased its position in shares of Snap-On by 0.5% in the 4th quarter. Vanguard Group Inc. now owns 6,525,488 shares of the company's stock valued at $2,248,683,000 after buying an additional 31,073 shares in the last quarter. State Street Corp increased its position in shares of Snap-On by 1.6% in the 3rd quarter. State Street Corp now owns 2,243,970 shares of the company's stock valued at $777,603,000 after buying an additional 36,130 shares in the last quarter. First Trust Advisors LP increased its position in shares of Snap-On by 1.3% in the 3rd quarter. First Trust Advisors LP now owns 1,916,571 shares of the company's stock valued at $664,149,000 after buying an additional 23,863 shares in the last quarter. Nordea Investment Management AB increased its position in shares of Snap-On by 4.1% in the 4th quarter. Nordea Investment Management AB now owns 1,310,198 shares of the company's stock valued at $454,206,000 after buying an additional 51,486 shares in the last quarter. Finally, Bank of America Corp DE increased its position in shares of Snap-On by 2.0% in the 3rd quarter. Bank of America Corp DE now owns 933,495 shares of the company's stock valued at $323,484,000 after buying an additional 18,549 shares in the last quarter. Institutional investors own 84.88% of the company's stock.

Analyst Upgrades and Downgrades

A number of analysts recently commented on SNA shares. Roth Mkm restated a "buy" rating and issued a $431.00 price objective on shares of Snap-On in a research report on Friday, April 24th. Weiss Ratings restated a "buy (b)" rating on shares of Snap-On in a research report on Monday, April 20th. Barclays assumed coverage on shares of Snap-On in a research report on Thursday, May 28th. They issued an "overweight" rating and a $420.00 price objective for the company. Robert W. Baird upped their target price on shares of Snap-On from $380.00 to $395.00 and gave the stock a "neutral" rating in a research note on Friday, April 24th. Finally, Wall Street Zen lowered shares of Snap-On from a "buy" rating to a "hold" rating in a research note on Saturday, February 7th. Five investment analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, Snap-On currently has an average rating of "Moderate Buy" and a consensus price target of $387.67.

Snap-On Price Performance

Shares of NYSE SNA opened at $372.40 on Wednesday. The firm has a market cap of $19.29 billion, a PE ratio of 19.23, a PEG ratio of 2.58 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. Snap-On Incorporated has a 1-year low of $301.82 and a 1-year high of $400.88. The company has a fifty day moving average price of $371.41 and a 200 day moving average price of $364.32.

Snap-On (NYSE:SNA - Get Free Report) last posted its quarterly earnings data on Thursday, April 23rd. The company reported $4.69 EPS for the quarter, missing analysts' consensus estimates 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 for the quarter, compared to analyst estimates of $1.19 billion. During the same quarter in the prior year, the company earned $4.51 earnings per share. The company's quarterly revenue was up 5.8% on a year-over-year basis. Research analysts predict that Snap-On Incorporated will post 19.7 earnings per share for the current fiscal year.

Snap-On Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, June 10th. Stockholders of record on Wednesday, May 20th will be paid a dividend of $2.44 per share. This represents a $9.76 dividend on an annualized basis and a dividend yield of 2.6%. The ex-dividend date is Wednesday, May 20th. Snap-On's dividend payout ratio is currently 50.39%.

Snap-On announced that its Board of Directors has approved a share repurchase plan on Thursday, April 30th that permits the company to repurchase $500.00 million in shares. This repurchase authorization permits the company to buy up to 2.6% of its stock through open market purchases. Stock repurchase plans are typically an indication that the company's board of directors believes its stock is undervalued.

Insider Transactions at Snap-On

In other news, CFO Aldo John Pagliari sold 5,713 shares of the stock in a transaction dated Thursday, May 14th. The shares were 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 represents a 4.56% decrease in their position. 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, CEO Nicholas T. Pinchuk sold 23,396 shares of the stock in a transaction dated Tuesday, May 5th. The stock was sold at an average price of $375.77, for a total transaction of $8,791,514.92. Following the transaction, the chief executive officer owned 856,918 shares of the company's stock, valued at approximately $322,004,076.86. This represents a 2.66% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Corporate insiders own 3.80% of the company's stock.

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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