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

Key Points

• Moderate Buy consensus from six analysts (4 buy / 1 hold / 1 sell) with an average 12‑month target of $381.20.
• The board authorized a $500 million buyback (up to 2.6% of shares) and declared a quarterly dividend of $2.44 per share (annualized $9.76, ~2.6% yield; ex‑dividend May 20, pay June 10).
• Latest quarter: reported EPS $4.69 (missed $4.75 est.) but revenue of $1.21 billion beat expectations, with a net margin of 21.28% and ROE of 17.13%; the shares trade around $372 with a PE of ~19.2 and analysts project ~19.75 EPS for the year.

Snap-On Incorporated (NYSE:SNA - Get Free Report) has been given a consensus recommendation of "Moderate Buy" by the six analysts that are currently covering the stock, Marketbeat.com reports. One research analyst has rated the stock with a sell recommendation, one has assigned a hold recommendation and four have assigned a buy recommendation to the company. The average 12 month target price among brokers that have covered the stock in the last year is $381.20.

SNA has been the subject of several research analyst reports. Weiss Ratings reaffirmed a "buy (b)" rating on shares of Snap-On in a research note on Monday, April 20th. Wall Street Zen downgraded shares of Snap-On from a "buy" rating to a "hold" rating in a research note on Saturday, February 7th. Robert W. Baird lifted their price target on shares of Snap-On from $380.00 to $395.00 and gave the company a "neutral" rating in a research note on Friday, April 24th. Tigress Financial lifted their price target on shares of Snap-On from $405.00 to $445.00 and gave the company a "buy" rating in a research note on Friday, February 27th. Finally, Roth Mkm reaffirmed a "buy" rating and set a $431.00 price target on shares of Snap-On in a research note on Friday, April 24th.

Snap-On Stock Down 2.1%

Shares of NYSE:SNA opened at $372.42 on Tuesday. Snap-On has a 1 year low of $301.82 and a 1 year high of $400.88. The business has a 50 day simple moving average of $374.37 and a two-hundred day simple moving average of $360.39. The firm has a market capitalization of $19.29 billion, a PE ratio of 19.23, a price-to-earnings-growth ratio of 2.67 and a beta of 0.75. 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 earnings results on Thursday, April 23rd. The company reported $4.69 earnings per share (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 business had revenue of $1.21 billion for the quarter, compared to analysts' expectations of $1.19 billion. During the same quarter last year, the firm earned $4.51 EPS. The firm's quarterly revenue was up 5.8% on a year-over-year basis. On average, equities analysts predict that Snap-On will post 19.75 EPS for the current year.

Snap-On announced that its board has authorized 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 buy up to 2.6% of its shares through open market purchases. Shares buyback plans are typically a sign that the company's board believes its stock is undervalued.

Snap-On Dividend Announcement

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

Insider Activity at Snap-On

In related news, CEO Nicholas T. Pinchuk sold 23,229 shares of the business's stock in a transaction that occurred on Monday, February 23rd. The shares were sold at an average price of $383.36, for a total value of $8,905,069.44. Following the completion of the transaction, the chief executive officer owned 846,562 shares of the company's stock, valued at $324,538,008.32. The trade was a 2.67% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at the SEC website. Also, CFO Aldo John Pagliari sold 7,043 shares of the business's stock in a transaction that occurred on Thursday, February 19th. The stock was sold at an average price of $382.05, for a total transaction of $2,690,778.15. Following the completion of the transaction, the chief financial officer directly owned 117,183 shares of the company's stock, valued at $44,769,765.15. This trade represents a 5.67% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last ninety days, insiders sold 39,650 shares of company stock worth $15,210,959. Insiders own 3.80% of the company's stock.

Hedge Funds Weigh In On Snap-On

Large investors have recently bought and sold shares of the business. Thurston Springer Miller Herd & Titak Inc. bought a new position in Snap-On in the fourth quarter worth approximately $25,000. DV Equities LLC bought a new position in Snap-On in the fourth quarter worth approximately $25,000. GoalVest Advisory LLC bought a new position in Snap-On in the fourth quarter worth approximately $28,000. Montag A & Associates Inc. raised its stake in Snap-On by 331.8% in the fourth quarter. Montag A & Associates Inc. now owns 95 shares of the company's stock worth $33,000 after buying an additional 73 shares in the last quarter. Finally, SJS Investment Consulting Inc. raised its stake in Snap-On by 1,880.0% in the third quarter. SJS Investment Consulting Inc. now owns 99 shares of the company's stock worth $34,000 after buying an additional 94 shares in the last quarter. Institutional investors own 84.88% of the company's stock.

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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