Snap-on (NYSE:SNA) Shares Gap Down Following Weak Earnings

Snap-on Incorporated (NYSE:SNA - Get Free Report) shares gapped down before the market opened on Thursday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $332.00, but opened at $315.64. Snap-on shares last traded at $309.66, with a volume of 98,849 shares traded.

The company reported $4.51 earnings per share for the quarter, missing analysts' consensus estimates of $4.81 by ($0.30). Snap-on had a net margin of 21.71% and a return on equity of 19.20%. The firm had revenue of $1.14 billion during the quarter, compared to analysts' expectations of $1.20 billion. During the same quarter in the prior year, the business earned $4.91 EPS.

Snap-on Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Monday, March 10th. Shareholders of record on Monday, February 24th were paid a dividend of $2.14 per share. The ex-dividend date of this dividend was Monday, February 24th. This represents a $8.56 annualized dividend and a dividend yield of 2.86%. Snap-on's dividend payout ratio is currently 44.82%.

Analyst Upgrades and Downgrades

SNA has been the topic of several recent analyst reports. Longbow Research upgraded shares of Snap-on from a "neutral" rating to a "buy" rating and set a $400.00 price objective on the stock in a report on Monday, March 31st. Barrington Research reaffirmed an "outperform" rating and issued a $350.00 target price on shares of Snap-on in a research report on Thursday, April 17th. Tigress Financial upped their price target on Snap-on from $385.00 to $390.00 and gave the stock a "buy" rating in a report on Tuesday, March 4th. Robert W. Baird reduced their target price on shares of Snap-on from $349.00 to $320.00 and set a "neutral" rating on the stock in a research report on Monday. Finally, StockNews.com lowered shares of Snap-on from a "buy" rating to a "hold" rating in a report on Friday. One research analyst has rated the stock with a sell rating, two have given a hold rating and four have issued a buy rating to the stock. According to data from MarketBeat, the stock currently has an average rating of "Hold" and an average target price of $350.83.

Insider Buying and Selling

In related news, SVP Jesus Arregui sold 6,451 shares of the firm's stock in a transaction that occurred on Monday, February 10th. The stock was sold at an average price of $337.81, for a total value of $2,179,212.31. Following the sale, the senior vice president now owns 257 shares of the company's stock, valued at approximately $86,817.17. This trade represents a 96.17 % decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, CEO Nicholas T. Pinchuk sold 22,700 shares of the company's stock in a transaction on Thursday, March 27th. The stock was sold at an average price of $335.32, for a total value of $7,611,764.00. Following the transaction, the chief executive officer now owns 793,932 shares of the company's stock, valued at approximately $266,221,278.24. The trade was a 2.78 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 36,011 shares of company stock worth $12,116,859 over the last ninety days. 3.90% of the stock is owned by insiders.

Hedge Funds Weigh In On Snap-on

Institutional investors have recently modified their holdings of the company. UMB Bank n.a. grew its position in Snap-on by 70.5% in the 4th quarter. UMB Bank n.a. now owns 75 shares of the company's stock worth $25,000 after purchasing an additional 31 shares during the last quarter. SBI Securities Co. Ltd. acquired a new stake in Snap-on in the 4th quarter valued at approximately $26,000. Migdal Insurance & Financial Holdings Ltd. bought a new stake in Snap-on during the 4th quarter valued at $28,000. Opal Wealth Advisors LLC bought a new position in shares of Snap-on in the first quarter worth $35,000. Finally, CoreFirst Bank & Trust acquired a new position in shares of Snap-on during the fourth quarter valued at $40,000. Institutional investors own 84.88% of the company's stock.

Snap-on Trading Up 2.5 %

The firm has a market capitalization of $15.71 billion, a P/E ratio of 15.35, a PEG ratio of 2.21 and a beta of 0.84. The business's 50 day moving average is $330.83 and its two-hundred day moving average is $338.39. The company has a quick ratio of 3.17, a current ratio of 4.15 and a debt-to-equity ratio of 0.22.

Snap-on Company Profile

Snap-on Incorporated manufactures and markets tools, equipment, diagnostics, and repair information and systems solutions for professional users worldwide. It operates through Commercial & Industrial Group, Snap-on Tools Group, Repair Systems & Information Group, and Financial Services segments.