Snap-On (NYSE:SNA) CEO Sells $8,791,514.92 in Stock

Key Points

• CEO sale: Nicholas Pinchuk sold 23,396 shares on May 5 at an average $375.77 for a total of $8,791,514.92 under a pre-arranged Rule 10b5-1 plan, trimming his stake by 2.66 to 856,918 shares (≈$322M).
• Capital return: The board authorized a $500 million share buyback (about 2.6% of shares) and declared a quarterly dividend of $2.44 per share (annualized $9.76, ~2.6% yield; ex-dividend May 20, payable June 10).
• Recent results and market view: Q1 EPS was $4.69 (missed by $0.06) while revenue of $1.21B beat estimates, the stock traded near $378.76, and analysts hold a consensus "Moderate Buy" with a target around $381.20.

Snap-On Incorporated (NYSE:SNA - Get Free Report) CEO Nicholas Pinchuk sold 23,396 shares of the stock in a transaction 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 transaction, the chief executive officer directly owned 856,918 shares in the company, valued at $322,004,076.86. This trade represents a 2.66% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Snap-On Stock Up 1.8%

NYSE SNA traded up $6.64 during trading on Tuesday, reaching $378.76. 267,777 shares of the company's stock were exchanged, compared to its average volume of 382,757. The company has a 50 day moving average price of $374.37 and a two-hundred day moving average price of $360.39. The stock has a market cap of $19.62 billion, a P/E ratio of 19.55, a price-to-earnings-growth ratio of 2.67 and a beta of 0.75. Snap-On Incorporated 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 quick ratio of 2.74 and a current ratio of 3.53.

Snap-On (NYSE:SNA - Get Free Report) last released 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). The business had revenue of $1.21 billion during the quarter, compared to analysts' expectations of $1.19 billion. Snap-On had a net margin of 21.28% and a return on equity of 17.13%. The company's revenue was up 5.8% compared to the same quarter last year. During the same quarter in the previous year, the company posted $4.51 EPS. On average, equities research analysts anticipate that Snap-On Incorporated will post 19.75 EPS for the current fiscal year.

Snap-On announced that its Board of Directors has approved a stock buyback program on Thursday, April 30th that authorizes the company to buyback $500.00 million in outstanding shares. This buyback authorization authorizes the company to purchase up to 2.6% of its stock through open market purchases. Stock buyback programs are often a sign that the company's board of directors believes its shares are undervalued.

Snap-On Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, June 10th. Stockholders of record on Wednesday, May 20th will be given 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 is Wednesday, May 20th. Snap-On's payout ratio is currently 50.39%.

Institutional Investors Weigh In On Snap-On

Several hedge funds have recently made changes to their positions in the business. Thurston Springer Miller Herd & Titak Inc. purchased a new stake in Snap-On during the 4th quarter valued at approximately $25,000. DV Equities LLC purchased a new position in shares of Snap-On in the 4th quarter valued at approximately $25,000. GoalVest Advisory LLC acquired a new position in shares of Snap-On in the fourth quarter valued at approximately $28,000. Montag A & Associates Inc. increased its holdings 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 purchasing an additional 73 shares during the period. Finally, SJS Investment Consulting Inc. raised its stake in shares of Snap-On by 1,880.0% during the third quarter. SJS Investment Consulting Inc. now owns 99 shares of the company's stock worth $34,000 after purchasing an additional 94 shares during the last quarter. Institutional investors and hedge funds own 84.88% of the company's stock.

Analyst Ratings Changes

A number of research firms have recently commented on SNA. Roth Mkm reiterated a "buy" rating and set a $431.00 target price 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 research report on Monday, April 20th. Tigress Financial raised their price target on Snap-On from $405.00 to $445.00 and gave the stock a "buy" rating in a research note on Friday, February 27th. Wall Street Zen lowered Snap-On from a "buy" rating to a "hold" rating in a research report on Saturday, February 7th. Finally, 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 report on Friday, April 24th. Four research analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has given a Sell rating to the company. According to MarketBeat, the company presently has a consensus rating of "Moderate Buy" and a consensus target price of $381.20.

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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