Snap-On Incorporated (NYSE:SNA) Given Consensus Recommendation of "Moderate Buy" by Analysts

Key Points

• Analysts maintain a “Moderate Buy” consensus on Snap-On, with five buy ratings and one hold. The average 12-month price target is $426.20, above the reported $407.90 share price.
• Snap-On slightly exceeded quarterly expectations, reporting $4.96 EPS versus a $4.95 consensus and $1.24 billion in revenue versus $1.22 billion expected; revenue increased 4.7% year over year.
• The company declared a quarterly dividend of $2.44 per share, equivalent to a 2.4% annual yield, and authorized a $500 million share-repurchase program covering up to 2.5% of outstanding shares.

Shares of Snap-On Incorporated (NYSE:SNA - Get Free Report) have received a consensus recommendation of "Moderate Buy" from the six analysts that are covering the company, MarketBeat reports. One analyst has rated the stock with a hold recommendation and five have assigned a buy recommendation to the company. The average 1 year price objective among brokers that have updated their coverage on the stock in the last year is $426.20.

SNA has been the topic of several recent analyst reports. Barclays initiated coverage on Snap-On in a research report on Thursday, May 28th. They set an "overweight" rating and a $420.00 target price on the stock. Weiss Ratings restated a "buy (b)" rating on shares of Snap-On in a research note on Friday, July 17th. Robert W. Baird set a $415.00 price objective on Snap-On in a report on Friday, July 24th. Tigress Financial increased their price objective on Snap-On from $445.00 to $485.00 and gave the stock a "buy" rating in a research report on Friday, July 31st. Finally, Roth Capital reissued a "buy" rating and issued a $461.00 target price (up from $409.00) on shares of Snap-On in a report on Friday, July 24th.

Snap-On Stock Down 0.9%

Shares of NYSE:SNA opened at $407.90 on Thursday. Snap-On has a fifty-two week low of $319.20 and a fifty-two week high of $423.02. The company has a quick ratio of 2.64, a current ratio of 3.43 and a debt-to-equity ratio of 0.15. The firm's 50-day simple moving average is $401.18 and its 200-day simple moving average is $383.23. The company has a market cap of $21.10 billion, a price-to-earnings ratio of 20.80, a PEG ratio of 2.90 and a beta of 0.73.

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

Snap-On Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Thursday, September 10th. Stockholders of record on Wednesday, August 19th will be paid a dividend of $2.44 per share. The ex-dividend date of this dividend is Wednesday, August 19th. This represents a $9.76 dividend on an annualized basis and a dividend yield of 2.4%. Snap-On's dividend payout ratio is 49.77%.

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

Insider Activity at Snap-On

In other Snap-On news, SVP Timothy L. Chambers sold 9,111 shares of the company's stock in a transaction dated Tuesday, July 28th. The shares were sold at an average price of $419.36, for a total transaction of $3,820,788.96. Following the transaction, the senior vice president directly owned 21,223 shares in the company, valued at approximately $8,900,077.28. This represents a 30.04% decrease in their ownership of the stock. The sale was disclosed in a 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, VP Richard Thomas Miller sold 2,000 shares of the stock in a transaction dated Wednesday, July 1st. The shares were sold at an average price of $405.92, for a total transaction of $811,840.00. Following the completion of the transaction, the vice president directly owned 4,529 shares of the company's stock, valued at approximately $1,838,411.68. This trade represents a 30.63% 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. Insiders have sold 17,508 shares of company stock worth $7,098,598 over the last three months. 3.80% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Snap-On

Institutional investors and hedge funds have recently modified their holdings of the company. Bank of Nova Scotia acquired a new position in Snap-On during the second quarter worth $2,615,000. Elevation Point Wealth Partners LLC purchased a new stake in Snap-On during the second quarter worth $236,000. Daiichi Life Insurance Co. Ltd. acquired a new stake in Snap-On in the second quarter valued at $280,000. Commerce Bank acquired a new stake in Snap-On in the second quarter valued at $1,202,000. Finally, Northwestern Mutual Wealth Management Co. purchased a new position in shares of Snap-On in the second quarter valued at $1,092,000. Institutional investors and hedge funds own 84.88% of the company's stock.

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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