Snap-On (NYSE:SNA) Shares Gap Up Following Better-Than-Expected Earnings

Snap-On Incorporated (NYSE:SNA - Get Free Report)'s share price gapped up prior to trading on Thursday after the company announced better than expected quarterly earnings. The stock had previously closed at $313.01, but opened at $329.85. Snap-On shares last traded at $328.83, with a volume of 233,624 shares.

The company reported $4.72 earnings per share for the quarter, beating analysts' consensus estimates of $4.61 by $0.11. Snap-On had a return on equity of 18.60% and a net margin of 21.42%. The business had revenue of $1.18 billion during the quarter, compared to the consensus estimate of $1.16 billion. During the same period in the previous year, the business earned $5.07 EPS. The business's quarterly revenue was up .0% on a year-over-year basis.

Snap-On Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Tuesday, June 10th. Stockholders of record on Tuesday, May 20th were issued a $2.14 dividend. The ex-dividend date of this dividend was Tuesday, May 20th. This represents a $8.56 dividend on an annualized basis and a dividend yield of 2.54%. Snap-On's dividend payout ratio (DPR) is 44.82%.

Wall Street Analyst Weigh In

A number of equities research analysts have recently weighed in on the company. Longbow Research upgraded Snap-On from a "neutral" rating to a "buy" rating and set a $400.00 price target for the company in a report on Monday, March 31st. Wall Street Zen upgraded Snap-On from a "hold" rating to a "buy" rating in a research note on Friday, May 16th. Robert W. Baird upped their price objective on Snap-On from $329.00 to $347.00 and gave the stock a "neutral" rating in a research note on Friday. Bank of America upped their price objective on Snap-On from $265.00 to $285.00 and gave the company an "underperform" rating in a report on Friday. Finally, Barrington Research restated an "outperform" rating and issued a $350.00 price objective on shares of Snap-On in a report on Tuesday. One analyst has rated the stock with a sell rating, one has assigned a hold rating and five have assigned a buy rating to the stock. According to MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and an average target price of $356.17.

Insider Activity at Snap-On

In related news, CFO Aldo John Pagliari sold 5,553 shares of the stock in a transaction dated Thursday, May 15th. The stock was sold at an average price of $326.84, for a total value of $1,814,942.52. Following the completion of the sale, the chief financial officer directly owned 109,560 shares of the company's stock, valued at approximately $35,808,590.40. This represents a 4.82% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CEO Nicholas T. Pinchuk sold 23,172 shares of the firm's stock in a transaction dated Monday, June 2nd. The stock was sold at an average price of $315.85, for a total value of $7,318,876.20. Following the sale, the chief executive officer directly owned 804,510 shares of the company's stock, valued at $254,104,483.50. This trade represents a 2.80% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 29,815 shares of company stock worth $9,482,532 in the last quarter. 3.90% of the stock is owned by company insiders.

Institutional Investors Weigh In On Snap-On

A number of hedge funds and other institutional investors have recently made changes to their positions in the company. Vanguard Group Inc. increased its holdings in shares of Snap-On by 0.3% during the 4th quarter. Vanguard Group Inc. now owns 6,404,599 shares of the company's stock valued at $2,174,233,000 after acquiring an additional 19,328 shares during the last quarter. Charles Schwab Investment Management Inc. increased its holdings in shares of Snap-On by 6.4% during the 1st quarter. Charles Schwab Investment Management Inc. now owns 1,921,584 shares of the company's stock valued at $647,593,000 after acquiring an additional 115,306 shares during the last quarter. First Trust Advisors LP increased its holdings in shares of Snap-On by 29.2% during the 4th quarter. First Trust Advisors LP now owns 1,819,403 shares of the company's stock valued at $617,651,000 after acquiring an additional 411,317 shares during the last quarter. Geode Capital Management LLC increased its holdings in shares of Snap-On by 1.7% during the 4th quarter. Geode Capital Management LLC now owns 1,641,159 shares of the company's stock valued at $556,022,000 after acquiring an additional 27,700 shares during the last quarter. Finally, Kingstone Capital Partners Texas LLC acquired a new position in shares of Snap-On during the 2nd quarter valued at about $434,938,000. 84.88% of the stock is owned by hedge funds and other institutional investors.

Snap-On Stock Performance

The company has a current ratio of 4.14, a quick ratio of 3.18 and a debt-to-equity ratio of 0.21. The firm has a market cap of $17.60 billion, a price-to-earnings ratio of 17.62, a price-to-earnings-growth ratio of 2.23 and a beta of 0.76. The stock has a fifty day moving average price of $318.47 and a 200 day moving average price of $327.84.

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.