Principal Financial Group Inc. Trims Stock Position in Snap-On Incorporated $SNA

Key Points

• Principal Financial Group cut its Snap-On stake by 5.9% in the first quarter, selling 14,936 shares and ending with 238,936 shares valued at about $86.8 million.
• Analyst sentiment remains fairly positive: the stock has a Moderate Buy consensus rating, with five Buy ratings, one Hold, and one Sell, and an average target price of $387.67.
• Snap-On reported quarterly EPS of $4.69, slightly below expectations, while revenue of $1.21 billion beat estimates; the company also paid a $2.44 quarterly dividend and authorized a $500 million share repurchase plan.

Principal Financial Group Inc. decreased its stake in Snap-On Incorporated (NYSE:SNA - Free Report) by 5.9% in the 1st quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The institutional investor owned 238,936 shares of the company's stock after selling 14,936 shares during the period. Principal Financial Group Inc. owned 0.46% of Snap-On worth $86,791,000 at the end of the most recent reporting period.

A number of other hedge funds have also recently modified their holdings of the stock. Chicago Partners Investment Group LLC lifted its position in Snap-On by 26.3% in the first quarter. Chicago Partners Investment Group LLC now owns 2,378 shares of the company's stock valued at $909,000 after acquiring an additional 495 shares during the last quarter. Arbejdsmarkedets Tillaegspension grew its holdings in shares of Snap-On by 2.9% during the first quarter. Arbejdsmarkedets Tillaegspension now owns 69,782 shares of the company's stock worth $25,346,000 after purchasing an additional 1,945 shares during the last quarter. Brindle & Bay Financial Advisors LLC increased its position in shares of Snap-On by 3.5% during the first quarter. Brindle & Bay Financial Advisors LLC now owns 2,275 shares of the company's stock worth $826,000 after purchasing an additional 76 shares in the last quarter. Procyon Advisors LLC increased its position in shares of Snap-On by 8.9% during the first quarter. Procyon Advisors LLC now owns 15,707 shares of the company's stock worth $5,705,000 after purchasing an additional 1,284 shares in the last quarter. Finally, Diversify Wealth Management LLC purchased a new stake in shares of Snap-On in the 1st quarter valued at about $280,000. 84.88% of the stock is owned by hedge funds and other institutional investors.

Analyst Upgrades and Downgrades

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

Snap-On Stock Performance

NYSE SNA opened at $404.05 on Thursday. The company has a quick ratio of 2.74, a current ratio of 3.53 and a debt-to-equity ratio of 0.15. Snap-On Incorporated has a 52-week low of $310.23 and a 52-week high of $414.62. The business's 50-day moving average price is $384.20 and its 200 day moving average price is $375.77. The firm has a market cap of $20.93 billion, a P/E ratio of 20.86, a P/E/G ratio of 2.85 and a beta of 0.73.

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 the consensus estimate of $4.75 by ($0.06). Snap-On had a net margin of 21.28% and a return on equity of 17.13%. The company had revenue of $1.21 billion for the quarter, compared to analysts' expectations of $1.19 billion. During the same period in the prior year, the company earned $4.51 earnings per share. The firm's revenue was up 5.8% on a year-over-year basis. On average, equities research analysts expect that Snap-On Incorporated will post 19.7 earnings per share for the current year.

Snap-On Dividend Announcement

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

Snap-On declared that its Board of Directors has authorized 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 reacquire up to 2.5% of its stock through open market purchases. Stock repurchase plans are usually an indication that the company's leadership believes its stock is undervalued.

Insider Activity

In other Snap-On news, CFO Aldo John Pagliari sold 5,713 shares of the stock in a transaction on Thursday, May 14th. The stock was sold at an average price of $367.19, for a total value of $2,097,756.47. Following the completion of the transaction, the chief financial officer owned 119,488 shares in the company, valued at approximately $43,874,798.72. This represents a 4.56% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. 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 shares were sold at an average price of $375.77, for a total transaction of $8,791,514.92. Following the completion of the transaction, the chief executive officer owned 856,918 shares of the company's stock, valued at $322,004,076.86. This represents a 2.66% decrease in their position. 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. In the last three months, insiders have sold 37,117 shares of company stock valued at $14,003,922. 3.80% of the stock is owned by insiders.

About Snap-On

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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