Snap-On (NYSE:SNA) Hits New 52-Week High - What's Next?

Key Points

• Snap-On shares hit a new 52-week high on Tuesday, trading as high as $414.62 and closing near $414.07, extending a recent upward move in the stock.
• Wall Street sentiment remains mostly positive, with several analysts maintaining or raising bullish views; the company currently carries a Moderate Buy rating and an average price target of $387.67.
• Snap-On continues to return cash to shareholders through a $2.44 quarterly dividend and a newly authorized $500 million stock buyback program, while insiders have also been selling shares in recent months.

Shares of Snap-On Incorporated (NYSE:SNA - Get Free Report) hit a new 52-week high on Tuesday . The stock traded as high as $414.62 and last traded at $414.07, with a volume of 368854 shares changing hands. The stock had previously closed at $412.09.

Wall Street Analyst Weigh In

SNA has been the topic of several recent analyst reports. Barclays assumed coverage on shares of Snap-On in a report on Thursday, May 28th. They issued an "overweight" rating and a $420.00 price objective on the stock. Weiss Ratings reaffirmed a "buy (b)" rating on shares of Snap-On in a report on Monday, April 20th. Roth Mkm reaffirmed a "buy" rating and set a $431.00 price target on shares of Snap-On in a report on Friday, April 24th. Finally, Robert W. Baird increased their target price on shares of Snap-On from $380.00 to $395.00 and gave the company a "neutral" rating in a research report on Friday, April 24th. Five research analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, the stock has an average rating of "Moderate Buy" and an average target price of $387.67.

Snap-On Stock Up 0.5%

The company has a quick ratio of 2.74, a current ratio of 3.53 and a debt-to-equity ratio of 0.15. The stock has a market capitalization of $21.45 billion, a PE ratio of 21.38, a PEG ratio of 2.90 and a beta of 0.73. The firm's fifty day moving average is $381.11 and its 200-day moving average is $373.13.

Snap-On (NYSE:SNA - Get Free Report) last announced its quarterly earnings data on Thursday, April 23rd. The company reported $4.69 earnings per share 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%. Snap-On's revenue for the quarter was up 5.8% compared to the same quarter last year. During the same period in the prior year, the firm posted $4.51 EPS. On average, equities research analysts predict that Snap-On Incorporated will post 19.7 earnings per share for the current year.

Snap-On Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Wednesday, June 10th. Investors of record on Wednesday, May 20th were issued a dividend of $2.44 per share. This represents a $9.76 dividend on an annualized basis and a yield of 2.4%. The ex-dividend date of this dividend was Wednesday, May 20th. Snap-On's dividend payout ratio is currently 50.39%.

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

Insiders Place Their Bets

In other Snap-On news, VP Richard Thomas Miller sold 2,000 shares of the business's stock in a transaction on Wednesday, July 1st. The shares were sold at an average price of $405.92, for a total transaction of $811,840.00. Following the sale, the vice president directly owned 4,529 shares in the company, valued at approximately $1,838,411.68. The trade was a 30.63% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, SVP Jesus Arregui sold 4,251 shares of the company's stock in a transaction 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 transaction, the senior vice president directly owned 4,439 shares in the company, valued at approximately $1,704,220.88. This trade represents a 48.92% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold a total of 37,117 shares of company stock worth $14,003,922 in the last ninety days. 3.80% of the stock is owned by insiders.

Institutional Investors Weigh In On Snap-On

A number of hedge funds and other institutional investors have recently modified their holdings of SNA. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its stake in Snap-On by 15.5% in the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 8,850 shares of the company's stock valued at $2,983,000 after purchasing an additional 1,185 shares in the last quarter. Woodline Partners LP boosted its position in Snap-On by 40.4% during the first quarter. Woodline Partners LP now owns 4,426 shares of the company's stock worth $1,492,000 after purchasing an additional 1,273 shares in the last quarter. EverSource Wealth Advisors LLC grew its holdings in Snap-On by 100.9% in the second quarter. EverSource Wealth Advisors LLC now owns 464 shares of the company's stock valued at $144,000 after purchasing an additional 233 shares during the last quarter. Gamco Investors INC. ET AL increased its position in shares of Snap-On by 32.9% in the second quarter. Gamco Investors INC. ET AL now owns 1,752 shares of the company's stock valued at $545,000 after buying an additional 434 shares in the last quarter. Finally, Natixis increased its position in shares of Snap-On by 136.8% in the second quarter. Natixis now owns 3,048 shares of the company's stock valued at $948,000 after buying an additional 1,761 shares in the last quarter. 84.88% of the stock is currently owned by institutional investors and hedge funds.

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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