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

Key Points

• Snap-On currently has a consensus analyst rating of “Moderate Buy” from seven research firms, with five buy ratings, one hold, and one sell. The average 12-month price target is about $387.67.
• The company’s latest quarterly results were mixed: EPS of $4.69 missed estimates by $0.06, but revenue of $1.21 billion topped expectations and rose 5.8% year over year.
• Snap-On also announced a $2.44 quarterly dividend and authorized a $500 million share repurchase program, signaling continued capital returns to shareholders.

Shares of Snap-On Incorporated (NYSE:SNA - Get Free Report) have received a consensus recommendation of "Moderate Buy" from the seven research firms that are currently covering the stock, MarketBeat Ratings reports. One research analyst has rated the stock with a sell recommendation, one has given a hold recommendation and five have issued a buy recommendation on the company. The average 12-month target price among brokerages that have issued a report on the stock in the last year is $387.6667.

A number of analysts recently commented on the company. Roth Mkm reiterated a "buy" rating and set a $431.00 price objective on shares of Snap-On in a research report on Friday, April 24th. Weiss Ratings reissued a "buy (b)" rating on shares of Snap-On in a report on Monday, April 20th. Barclays began coverage on Snap-On in a report on Thursday, May 28th. They set an "overweight" rating and a $420.00 price target for the company. Tigress Financial boosted their price target on Snap-On from $405.00 to $445.00 and gave the company a "buy" rating in a report on Friday, February 27th. Finally, Robert W. Baird boosted their price target on Snap-On from $380.00 to $395.00 and gave the company a "neutral" rating in a report on Friday, April 24th.

Snap-On Stock Down 1.1%

Shares of NYSE:SNA opened at $386.56 on Wednesday. The stock has a fifty day simple moving average of $376.87 and a two-hundred day simple moving average of $369.63. The stock has a market capitalization of $20.02 billion, a price-to-earnings ratio of 19.96, a PEG ratio of 2.75 and a beta of 0.73. Snap-On has a 12-month low of $305.19 and a 12-month high of $400.88. The company has a current ratio of 3.53, a quick ratio of 2.74 and a debt-to-equity ratio of 0.15.

Snap-On (NYSE:SNA - Get Free Report) last posted its quarterly earnings results on Thursday, April 23rd. The company reported $4.69 earnings per share for the quarter, missing the consensus estimate of $4.75 by ($0.06). Snap-On had a return on equity of 17.13% and a net margin of 21.28%.The business had revenue of $1.21 billion during the quarter, compared to analysts' expectations of $1.19 billion. During the same quarter in the prior year, the firm earned $4.51 EPS. The firm's revenue for the quarter was up 5.8% compared to the same quarter last year. On average, research analysts anticipate that Snap-On will post 19.7 earnings per share for the current fiscal year.

Snap-On Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Wednesday, June 10th. Shareholders of record on Wednesday, May 20th were issued a dividend of $2.44 per share. This represents a $9.76 annualized dividend and a yield of 2.5%. 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 has authorized a share repurchase program on Thursday, April 30th that allows the company to repurchase $500.00 million in shares. This repurchase authorization allows the company to reacquire up to 2.6% of its shares through open market purchases. Shares repurchase programs are typically an indication that the company's leadership believes its stock is undervalued.

Insiders Place Their Bets

In related news, CFO Aldo John Pagliari sold 5,713 shares of the business's stock in a transaction dated 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 sale, the chief financial officer directly owned 119,488 shares in the company, valued at approximately $43,874,798.72. The trade was a 4.56% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, VP Richard Thomas Miller sold 427 shares of the business's 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 in the company, valued at $1,763,492.85. This represents a 8.62% 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. In the last ninety days, insiders sold 35,117 shares of company stock worth $13,192,082. 3.80% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Snap-On

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. DNB Asset Management AS boosted its position in Snap-On by 65.5% during the 3rd quarter. DNB Asset Management AS now owns 23,702 shares of the company's stock valued at $8,213,000 after acquiring an additional 9,377 shares in the last quarter. Pensionfund Sabic bought a new stake in Snap-On during the 4th quarter valued at $1,206,000. First Horizon Corp bought a new stake in Snap-On during the 4th quarter valued at $4,068,000. Bahl & Gaynor Inc. boosted its position in Snap-On by 1.3% during the 3rd quarter. Bahl & Gaynor Inc. now owns 381,283 shares of the company's stock valued at $132,126,000 after acquiring an additional 4,932 shares in the last quarter. Finally, Nordea Investment Management AB boosted its position in Snap-On by 4.1% during 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 in the last quarter. 84.88% of the stock is currently owned by hedge funds and other institutional investors.

Snap-On Company 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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