Snap-On (NYSE:SNA) Earns "Buy" Rating from Roth Capital

Key Points

• Roth Capital reiterated a buy rating on Snap-On and set a $431 price target, implying about 6.2% upside from the current share price.
• Snap-On’s latest quarterly results beat expectations, with earnings of $4.96 per share versus $4.95 expected and revenue of $1.24 billion, up 4.7% year over year.
• The company also approved a $500 million share buyback, while recent insider sales and heavy institutional ownership were noted; hedge funds and other institutions hold about 84.88% of the stock.

Snap-On (NYSE:SNA - Get Free Report)'s stock had its "buy" rating reissued by analysts at Roth Capital in a report issued on Thursday,Benzinga reports. They currently have a $431.00 price objective on the stock. Roth Capital's price objective suggests a potential upside of 6.18% from the company's current price.

SNA has been the subject of a number of other research reports. Weiss Ratings reissued a "buy (b)" rating on shares of Snap-On in a research note on Friday, July 17th. Barclays assumed coverage on Snap-On in a research note on Thursday, May 28th. They set an "overweight" rating and a $420.00 price objective for the company. Finally, Robert W. Baird lifted their target price on Snap-On from $380.00 to $395.00 and gave the company a "neutral" rating in a research note on Friday, April 24th. Five equities research analysts have rated the stock with a Buy rating and one has given a Hold rating to the company's stock. According to MarketBeat.com, Snap-On currently has an average rating of "Moderate Buy" and an average price target of $408.20.

Snap-On Stock Down 0.1%

NYSE SNA traded down $0.27 during trading on Thursday, reaching $405.90. 118,911 shares of the company's stock traded hands, compared to its average volume of 368,450. Snap-On has a 12-month low of $312.78 and a 12-month high of $419.68. The company has a debt-to-equity ratio of 0.15, a current ratio of 3.53 and a quick ratio of 2.74. The firm has a market cap of $21.03 billion, a price-to-earnings ratio of 20.93, a price-to-earnings-growth ratio of 2.84 and a beta of 0.73. The company's 50 day simple moving average is $388.08 and its two-hundred day simple moving average is $377.89.

Snap-On (NYSE:SNA - Get Free Report) last announced its quarterly earnings results on Thursday, July 23rd. The company reported $4.96 earnings per share for the quarter, topping the consensus estimate of $4.95 by $0.01. Snap-On had a net margin of 21.28% and a return on equity of 17.13%. The firm had revenue of $1.24 billion during the quarter, compared to analysts' expectations of $1.22 billion. During the same quarter in the prior year, the company earned $4.72 EPS. The company's revenue was up 4.7% compared to the same quarter last year. As a group, sell-side analysts forecast that Snap-On will post 19.7 EPS for the current fiscal year.

Snap-On announced that its board has approved a share buyback program on Thursday, April 30th that permits the company to buyback $500.00 million in shares. This buyback authorization permits the company to buy up to 2.5% of its shares through open market purchases. Shares buyback programs are usually a sign that the company's leadership believes its stock is undervalued.

Insider Transactions at Snap-On

In related news, CEO Nicholas T. Pinchuk sold 23,396 shares of the company's 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 sale, the chief executive officer owned 856,918 shares in the company, valued at $322,004,076.86. This represents a 2.66% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, SVP Jesus Arregui sold 4,251 shares of the stock in a transaction that occurred on Wednesday, June 10th. The stock was sold at an average price of $383.92, for a total transaction of $1,632,043.92. Following the completion of the transaction, the senior vice president owned 4,439 shares in the company, valued at approximately $1,704,220.88. This trade represents a 48.92% decrease in their position. The SEC filing for this sale provides additional information. Over the last three months, insiders sold 37,117 shares of company stock worth $14,003,922. 3.80% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Several institutional investors have recently made changes to their positions in the business. Thurston Springer Miller Herd & Titak Inc. acquired a new stake in Snap-On during the 4th quarter worth about $25,000. DV Equities LLC acquired a new position in shares of Snap-On in the 4th quarter valued at about $25,000. Western Wealth Management LLC purchased a new stake in shares of Snap-On in the first quarter worth about $29,000. Montag A & Associates Inc. boosted its stake 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 worth $33,000 after buying an additional 73 shares during the last quarter. Finally, Quattro Advisors LLC purchased a new stake in shares of Snap-On in the fourth quarter worth about $35,000. Hedge funds and other institutional investors 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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.