Snap-On Incorporated $SNA Shares Sold by Dearborn Partners LLC

Key Points

• Dearborn Partners LLC reduced its Snap-On stake by 7.3% in the fourth quarter, selling 7,974 shares and leaving it with 101,170 shares valued at about $34.9 million.
• Snap-On reported mixed quarterly results, with EPS of $4.69 slightly below estimates but revenue of $1.21 billion topping expectations and rising 5.8% year over year.
• The company’s board authorized a $500 million share buyback and declared a quarterly dividend of $2.44 per share, equal to an annualized yield of about 2.6%.

Dearborn Partners LLC trimmed its position in shares of Snap-On Incorporated (NYSE:SNA - Free Report) by 7.3% during the fourth quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor owned 101,170 shares of the company's stock after selling 7,974 shares during the period. Snap-On makes up about 1.7% of Dearborn Partners LLC's holdings, making the stock its 13th largest holding. Dearborn Partners LLC owned about 0.19% of Snap-On worth $34,863,000 at the end of the most recent reporting period.

Other large investors also recently added to or reduced their stakes in the company. Thurston Springer Miller Herd & Titak Inc. acquired a new stake in shares of Snap-On in the fourth quarter valued at $25,000. GoalVest Advisory LLC acquired a new stake in shares of Snap-On in the fourth quarter valued at $28,000. Montag A & Associates Inc. raised its stake in shares of Snap-On by 331.8% in the fourth quarter. Montag A & Associates Inc. now owns 95 shares of the company's stock valued at $33,000 after acquiring an additional 73 shares in the last quarter. Annis Gardner Whiting Capital Advisors LLC raised its stake in shares of Snap-On by 36.4% in the fourth quarter. Annis Gardner Whiting Capital Advisors LLC now owns 105 shares of the company's stock valued at $36,000 after acquiring an additional 28 shares in the last quarter. Finally, United Community Bank acquired a new stake in shares of Snap-On in the fourth quarter valued at $43,000. 84.88% of the stock is currently owned by institutional investors and hedge funds.

Snap-On Stock Performance

NYSE SNA opened at $379.67 on Friday. 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 $301.82 and a 52-week high of $400.88. The business's 50-day moving average price is $372.58 and its 200 day moving average price is $365.28. The firm has a market cap of $19.67 billion, a P/E ratio of 19.60, a P/E/G ratio of 2.67 and a beta of 0.73.

Snap-On (NYSE:SNA - Get Free Report) last released its quarterly earnings results on Thursday, April 23rd. The company reported $4.69 earnings per share (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 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 business earned $4.51 EPS. The business's quarterly revenue was up 5.8% compared to the same quarter last year. On average, equities research analysts expect that Snap-On Incorporated will post 19.7 earnings per share for the current year.

Snap-On announced that its Board of Directors has initiated a stock buyback plan on Thursday, April 30th that authorizes the company to buyback $500.00 million in shares. This buyback authorization authorizes the company to purchase up to 2.6% of its shares through open market purchases. Shares buyback plans are often a sign that the company's leadership believes its shares are undervalued.

Snap-On Announces Dividend

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

Insider Transactions at Snap-On

In related news, CFO Aldo John Pagliari sold 5,713 shares of the firm's stock in a transaction dated 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 transaction, the chief financial officer owned 119,488 shares of the company's stock, 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 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 Snap-On stock in a transaction that occurred on Tuesday, May 5th. The shares were sold at an average price of $375.77, for a total value of $8,791,514.92. Following the completion of the sale, the chief executive officer directly owned 856,918 shares in the company, valued at $322,004,076.86. This represents a 2.66% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders have sold 30,439 shares of company stock worth $11,393,700. Corporate insiders own 3.80% of the company's stock.

Wall Street Analyst Weigh In

Several analysts have recently issued reports on the company. Roth Mkm reiterated a "buy" rating and issued a $431.00 price objective on shares of Snap-On in a research note on Friday, April 24th. Tigress Financial increased their price objective on Snap-On from $405.00 to $445.00 and gave the company a "buy" rating in a research note on Friday, February 27th. 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 research note 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 target on the stock. Finally, Weiss Ratings restated a "buy (b)" rating on shares of Snap-On in a research note on Monday, April 20th. 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 company. According to MarketBeat, Snap-On has an average rating of "Moderate Buy" and an average 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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