Snap-On (NYSE:SNA) Sets New 12-Month High - Still a Buy?

Key Points

• Snap-On hit a new 52-week high, trading as high as $403.35 after closing at $392.14 the previous day, reflecting continued momentum in the stock.
• Wall Street sentiment remains constructive, with the stock carrying an average analyst rating of “Moderate Buy” and several firms raising or reaffirming buy ratings and higher price targets.
• The company continues to show financial strength through a quarterly dividend and a newly authorized $500 million share repurchase program, even as insiders have recently sold shares.

Snap-On Incorporated (NYSE:SNA - Get Free Report) hit a new 52-week high during trading on Thursday . The company traded as high as $403.35 and last traded at $402.11, with a volume of 65707 shares trading hands. The stock had previously closed at $392.14.

Snap-On News Summary

Here are the key news stories impacting Snap-On this week:

• Positive Sentiment: Snap-On received an average analyst rating of “Moderate Buy,” which can support investor confidence in the stock. Snap-On Incorporated NYSE: SNA Receives Average Rating of "Moderate Buy" from Analysts
• Positive Sentiment: A Zacks piece highlighted Snap-On’s operational agility, RCI plan, and innovation efforts as potential growth drivers, reinforcing the case for continued fundamental strength. Will Snap-on's Operational Agility, RCI Plan & Innovations Aid Growth?
• Neutral Sentiment: Multiple articles reported that a federal judge blocked or voided SNAP restrictions on soda and candy in several states. These stories are about U.S. food-assistance policy and appear indirectly related to Snap-On, with limited direct impact on the company’s business. Federal judge blocks USDA’s SNAP restrictions on soda, candy in five states
• Neutral Sentiment: Additional coverage questioned the controversy around SNAP soda and candy bans, but this appears to be a policy discussion rather than a direct catalyst for Snap-On Incorporated (SNA). Why SNAP soda and candy bans are controversial

Wall Street Analysts Forecast Growth

Several equities research analysts have recently issued reports on the company. Weiss Ratings reiterated 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 objective on shares of Snap-On in a research report on Friday, April 24th. Tigress Financial lifted their target price 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. Robert W. Baird lifted their price objective 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. Finally, Barclays started coverage on shares of Snap-On in a research report on Thursday, May 28th. They set an "overweight" rating and a $420.00 target price on the stock. Five analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, Snap-On presently has an average rating of "Moderate Buy" and a consensus target price of $387.67.

Snap-On Stock Up 1.4%

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 business has a 50-day simple moving average of $377.10 and a 200-day simple moving average of $369.96. The stock has a market cap of $20.61 billion, a P/E ratio of 20.54, a PEG ratio of 2.71 and a beta of 0.73.

Snap-On (NYSE:SNA - Get Free Report) last released its quarterly earnings results on Thursday, April 23rd. The company reported $4.69 EPS for the quarter, missing analysts' consensus estimates of $4.75 by ($0.06). The firm had revenue of $1.21 billion during the quarter, compared to the consensus estimate 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 for the quarter was up 5.8% compared to the same quarter last year. During the same period in the prior year, the business earned $4.51 EPS. Analysts expect that Snap-On Incorporated will post 19.7 EPS for the current year.

Snap-On Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Wednesday, June 10th. Investors of record on Wednesday, May 20th were issued a $2.44 dividend. This represents a $9.76 annualized dividend and a yield of 2.5%. The ex-dividend date was Wednesday, May 20th. Snap-On's dividend payout ratio (DPR) is 50.39%.

Snap-On declared that its board has authorized 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 generally an indication that the company's board of directors believes its shares are undervalued.

Insiders Place Their Bets

In other Snap-On news, SVP Jesus Arregui sold 4,251 shares of the stock in a transaction on Wednesday, June 10th. The shares were sold at an average price of $383.92, for a total value of $1,632,043.92. Following the completion of the sale, the senior vice president directly owned 4,439 shares of the company's stock, valued at $1,704,220.88. This represents a 48.92% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, CFO Aldo John Pagliari sold 1,330 shares of the business's stock in a transaction dated Thursday, June 4th. The stock was sold at an average price of $379.27, for a total transaction of $504,429.10. Following the transaction, the chief financial officer owned 118,158 shares in the company, valued at approximately $44,813,784.66. The trade was a 1.11% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold 35,117 shares of company stock worth $13,192,082 in the last 90 days. 3.80% of the stock is owned by company insiders.

Institutional Trading of Snap-On

A number of institutional investors and hedge funds have recently modified their holdings of the company. Auto Owners Insurance Co increased its stake in Snap-On by 34,360.0% in the fourth quarter. Auto Owners Insurance Co now owns 1,025,185 shares of the company's stock valued at $353,279,000 after acquiring an additional 1,022,210 shares during the period. Norges Bank bought a new position in Snap-On in the 4th quarter valued at $210,814,000. Victory Capital Management Inc. boosted its stake in Snap-On by 346.0% in the third quarter. Victory Capital Management Inc. now owns 279,484 shares of the company's stock worth $96,850,000 after purchasing an additional 216,813 shares in the last quarter. PFA Pension Forsikringsaktieselskab acquired a new position in Snap-On in the fourth quarter worth $69,751,000. Finally, UBS Group AG raised its holdings in shares of Snap-On by 30.7% in the fourth quarter. UBS Group AG now owns 617,620 shares of the company's stock valued at $212,832,000 after buying an additional 144,926 shares during the last quarter. 84.88% of the stock is currently owned by institutional investors.

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.

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