Snap-On Incorporated $SNA Position Boosted by Auto Owners Insurance Co

Key Points

• Auto Owners Insurance Co dramatically increased its Snap-On stake by 34,360% in the fourth quarter, ending with 1,025,185 shares valued at about $353.3 million.
• Snap-On reported quarterly earnings of $4.69 per share, missing estimates by $0.06, while revenue came in at $1.21 billion, topping expectations and rising 5.8% year over year.
• The company approved a $500 million share buyback and paid a quarterly dividend of $2.44 per share, which annualizes to $9.76 and a yield of about 2.5%.

Auto Owners Insurance Co increased its position in shares of Snap-On Incorporated (NYSE:SNA - Free Report) by 34,360.0% during the 4th quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The fund owned 1,025,185 shares of the company's stock after purchasing an additional 1,022,210 shares during the quarter. Auto Owners Insurance Co owned 1.97% of Snap-On worth $353,279,000 at the end of the most recent reporting period.

A number of other institutional investors and hedge funds also recently modified their holdings of SNA. Vanguard Group Inc. raised its stake in shares of Snap-On by 0.5% during the fourth quarter. Vanguard Group Inc. now owns 6,525,488 shares of the company's stock valued at $2,248,683,000 after purchasing an additional 31,073 shares in the last quarter. State Street Corp increased its position in shares of 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 purchasing an additional 28,071 shares during the period. Charles Schwab Investment Management Inc. boosted its stake in Snap-On by 2.0% during 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 buying an additional 39,765 shares in the last quarter. First Trust Advisors LP grew its holdings in Snap-On by 2.7% during the fourth quarter. First Trust Advisors LP now owns 1,967,608 shares of the company's stock worth $678,038,000 after acquiring an additional 51,037 shares during the period. Finally, Nordea Investment Management AB lifted its holdings in 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 acquiring an additional 51,486 shares during the last quarter. 84.88% of the stock is owned by institutional investors and hedge funds.

Insider Transactions at Snap-On

In other news, SVP Jesus Arregui sold 4,251 shares of the company's stock in a transaction on Wednesday, June 10th. The stock was sold at an average price of $383.92, for a total transaction 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 represents a 48.92% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, VP Richard Thomas Miller sold 427 shares of Snap-On stock in a transaction dated Wednesday, June 10th. The stock was sold at an average price of $389.55, for a total value of $166,337.85. Following the completion of the sale, the vice president owned 4,527 shares of the company's stock, valued at approximately $1,763,492.85. The trade was a 8.62% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders have sold 35,117 shares of company stock worth $13,192,082. Insiders own 3.80% of the company's stock.

Snap-On Trading Up 0.2%

Shares of NYSE SNA opened at $388.01 on Friday. Snap-On Incorporated has a 1-year low of $301.82 and a 1-year high of $400.88. The company has a market cap of $20.10 billion, a PE ratio of 20.03, a P/E/G ratio of 2.72 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 of $376.60 and a two-hundred day moving average of $368.77.

Snap-On (NYSE:SNA - Get Free Report) last released its quarterly earnings results 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 the consensus estimate of $1.19 billion. During the same period last year, the company earned $4.51 earnings per share. Snap-On's revenue for the quarter was up 5.8% compared to the same quarter last year. As a group, equities analysts expect that Snap-On Incorporated will post 19.7 earnings per share for the current fiscal year.

Snap-On declared that its Board of Directors has initiated a stock buyback plan on Thursday, April 30th that allows the company to repurchase $500.00 million in shares. This repurchase authorization allows the company to repurchase up to 2.5% of its stock through open market purchases. Stock repurchase plans are generally a sign that the company's board believes its shares are undervalued.

Snap-On Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Wednesday, June 10th. Stockholders of record on Wednesday, May 20th were paid a $2.44 dividend. This represents a $9.76 annualized dividend and a dividend yield of 2.5%. The ex-dividend date of this dividend was Wednesday, May 20th. Snap-On's dividend payout ratio (DPR) is 50.39%.

Analyst Upgrades and Downgrades

SNA has been the subject of a number of recent analyst reports. Robert W. Baird increased their price target on Snap-On from $380.00 to $395.00 and gave the company a "neutral" rating in a research report on Friday, April 24th. Tigress Financial lifted their target price on shares of Snap-On from $405.00 to $445.00 and gave the stock a "buy" rating in a research report on Friday, February 27th. Roth Mkm restated a "buy" rating and set a $431.00 price target on shares of Snap-On in a report on Friday, April 24th. Barclays began coverage on shares of Snap-On in a research note on Thursday, May 28th. They issued an "overweight" rating and a $420.00 price objective for the company. Finally, Weiss Ratings restated a "buy (b)" rating on shares of Snap-On in a research report on Monday, April 20th. 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 company. According to MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and a consensus target price of $387.67.

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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