Snap-On (NYSE:SNA) Reaches New 1-Year High - Here's Why

Key Points

• Snap-On shares hit a new 52-week high, trading as high as $404.46 as investors continued to bid up the stock.
• Analysts remain generally positive on the company, with a Moderate Buy consensus and price targets ranging up to $431 from Roth Mkm and $420 from Barclays.
• The company recently reported mixed earnings, missing EPS expectations but beating revenue estimates, while also maintaining a 2.4% dividend yield and authorizing a $500 million share buyback program.

Shares of Snap-On Incorporated (NYSE:SNA - Get Free Report) hit a new 52-week high during mid-day trading on Wednesday . The stock traded as high as $404.46 and last traded at $402.4080, with a volume of 279913 shares. The stock had previously closed at $398.36.

Analysts Set New Price Targets

A number of analysts have commented on SNA shares. 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. Robert W. Baird raised their price objective on shares of Snap-On from $380.00 to $395.00 and gave the stock a "neutral" rating in a research note on Friday, April 24th. Weiss Ratings reaffirmed a "buy (b)" rating on shares of Snap-On in a research note on Monday, April 20th. Finally, Barclays assumed coverage on Snap-On in a research report on Thursday, May 28th. They set an "overweight" rating and a $420.00 price objective for the company. Five investment analysts have rated the stock with a Buy rating, one has given a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, Snap-On presently has a consensus rating of "Moderate Buy" and an average target price of $387.67.

Snap-On Price Performance

The company has a 50 day moving average of $379.19 and a 200 day moving average of $371.45. The stock has a market capitalization of $20.84 billion, a price-to-earnings ratio of 20.77, a price-to-earnings-growth ratio of 2.80 and a beta of 0.73. The company has a quick ratio of 2.74, a current ratio of 3.53 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 EPS for the quarter, missing the consensus estimate 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 firm's quarterly revenue was up 5.8% compared to the same quarter last year. During the same quarter last year, the firm earned $4.51 EPS. As a group, equities research analysts forecast that Snap-On Incorporated will post 19.7 EPS for the current fiscal year.

Snap-On Announces Dividend

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

Snap-On declared that its board has approved a share repurchase program on Thursday, April 30th that permits the company to repurchase $500.00 million in outstanding shares. This repurchase authorization permits the company to repurchase up to 2.5% of its stock through open market purchases. Stock repurchase programs are generally an indication that the company's board of directors believes its stock is undervalued.

Insider Transactions at Snap-On

In other news, CEO Nicholas T. Pinchuk sold 23,396 shares of Snap-On stock in a transaction dated 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 transaction, the chief executive officer directly owned 856,918 shares of the company's stock, valued at $322,004,076.86. The trade was a 2.66% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this link. 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 sale, the vice president owned 4,527 shares of the company's stock, valued at $1,763,492.85. The trade was a 8.62% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders sold 35,117 shares of company stock valued at $13,192,082. 3.80% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Snap-On

Several large investors have recently made changes to their positions in SNA. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. boosted its position in Snap-On by 15.5% during the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 8,850 shares of the company's stock worth $2,983,000 after purchasing an additional 1,185 shares during the period. Woodline Partners LP increased its holdings in Snap-On by 40.4% in the 1st quarter. Woodline Partners LP now owns 4,426 shares of the company's stock valued at $1,492,000 after purchasing an additional 1,273 shares in the last quarter. EverSource Wealth Advisors LLC raised its position 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 period. Gamco Investors INC. ET AL lifted its stake in shares of Snap-On by 32.9% during the second quarter. Gamco Investors INC. ET AL now owns 1,752 shares of the company's stock worth $545,000 after purchasing an additional 434 shares in the last quarter. Finally, Natixis lifted its stake in shares of Snap-On by 136.8% during the second quarter. Natixis now owns 3,048 shares of the company's stock worth $948,000 after purchasing an additional 1,761 shares in the last quarter. Institutional investors and hedge funds 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.

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.