Snap-On Incorporated (NYSE:SNA) Receives Average Recommendation of "Moderate Buy" from Brokerages

Key Points

• Snap-On has a consensus analyst rating of “Moderate Buy”, with five buy ratings, one hold, and one sell; the average 12-month price target is about $387.67.
• The company recently reported Q1 earnings of $4.69 per share, missing estimates by $0.06, while revenue came in at $1.21 billion, slightly above expectations and up 5.8% year over year.
• Snap-On also announced a quarterly dividend of $2.44 per share and a new $500 million share repurchase program, signaling continued capital returns to shareholders.

Shares of Snap-On Incorporated (NYSE:SNA - Get Free Report) have earned a consensus rating of "Moderate Buy" from the seven research firms that are currently covering the company, MarketBeat.com reports. One equities research analyst has rated the stock with a sell recommendation, one has assigned a hold recommendation and five have given a buy recommendation to the company. The average 1 year price target among analysts that have covered the stock in the last year is $387.6667.

A number of equities research analysts have commented on SNA shares. Tigress Financial lifted their target price on Snap-On from $405.00 to $445.00 and gave the company a "buy" rating in a research report on Friday, February 27th. Robert W. Baird lifted 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. Wall Street Zen cut Snap-On from a "buy" rating to a "hold" rating in a research note on Saturday, February 7th. Weiss Ratings reissued a "buy (b)" rating on shares of Snap-On in a research note on Monday, April 20th. Finally, Roth Mkm reissued a "buy" rating and set a $431.00 target price on shares of Snap-On in a research note on Friday, April 24th.

Snap-On Stock Performance

NYSE SNA opened at $371.75 on Friday. The company has a market cap of $19.26 billion, a PE ratio of 19.19, a price-to-earnings-growth ratio of 2.63 and a beta of 0.75. The stock's 50 day simple moving average is $371.30 and its 200-day simple moving average is $364.00. Snap-On has a 1-year low of $301.82 and a 1-year high of $400.88. The company has a debt-to-equity ratio of 0.15, a current ratio of 3.53 and a quick ratio of 2.74.

Snap-On (NYSE:SNA - Get Free Report) last announced 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 company had revenue of $1.21 billion for the quarter, compared to analysts' expectations of $1.19 billion. During the same quarter in the previous year, the business posted $4.51 EPS. The business's quarterly revenue was up 5.8% compared to the same quarter last year. As a group, equities research analysts anticipate that Snap-On will post 19.7 EPS for the current fiscal year.

Snap-On Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Wednesday, June 10th. Investors 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 yield of 2.6%. The ex-dividend date is Wednesday, May 20th. Snap-On's dividend payout ratio (DPR) is currently 50.39%.

Snap-On declared that its board has initiated a share repurchase program on Thursday, April 30th that permits the company to buyback $500.00 million in outstanding shares. This buyback authorization permits the company to buy up to 2.6% of its stock through open market purchases. Stock buyback programs are often a sign that the company's leadership believes its stock is undervalued.

Insider Activity at Snap-On

In other news, CFO Aldo John Pagliari sold 5,713 shares of the stock in a transaction that occurred on 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 completion of the transaction, the chief financial officer directly owned 119,488 shares of the company's stock, valued at approximately $43,874,798.72. This represents a 4.56% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through this hyperlink. 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 that occurred on Tuesday, May 5th. The stock was sold at an average price of $375.77, for a total value of $8,791,514.92. Following the transaction, the chief executive officer directly owned 856,918 shares of the company's stock, valued at approximately $322,004,076.86. This trade represents a 2.66% 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. 3.80% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Snap-On

A number of large investors have recently modified their holdings of the business. Cozad Asset Management Inc. raised its stake in shares of Snap-On by 3.6% during the 1st quarter. Cozad Asset Management Inc. now owns 7,675 shares of the company's stock worth $2,788,000 after buying an additional 264 shares in the last quarter. Axiom Investment Management LLC purchased a new position in shares of Snap-On during the 1st quarter worth approximately $118,000. Western Wealth Management LLC purchased a new position in shares of Snap-On during the 1st quarter worth approximately $29,000. Bank of America Corp DE raised its stake in shares of Snap-On by 0.4% during the 1st quarter. Bank of America Corp DE now owns 999,497 shares of the company's stock worth $363,037,000 after buying an additional 3,770 shares in the last quarter. Finally, Kentucky Retirement Systems purchased a new position in shares of Snap-On during the 1st quarter worth approximately $1,744,000. 84.88% of the stock is owned by hedge funds and other institutional investors.

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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