Snap-On (NYSE:SNA) Upgraded by Barclays to Strong-Buy Rating

Key Points

• Barclays upgraded Snap-On to “strong-buy.” The stock now has a consensus rating of “Moderate Buy” with a consensus price target of $387.67, reflecting generally positive analyst sentiment.
• Snap-On posted mixed quarterly results. The company beat revenue expectations at $1.21 billion, but EPS of $4.69 came in slightly below the $4.75 estimate; revenue still rose 5.8% year over year.
• The company authorized a $500 million share repurchase program. The buyback would allow Snap-On to repurchase up to 2.6% of its shares, a move often viewed as a sign management believes the stock is undervalued.

Snap-On (NYSE:SNA - Get Free Report) was upgraded by investment analysts at Barclays to a "strong-buy" rating in a report issued on Thursday,Zacks.com reports.

Other research analysts also recently issued research reports about the company. Weiss Ratings reaffirmed a "buy (b)" rating on shares of Snap-On in a research note on Monday, April 20th. Tigress Financial boosted their price target on 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 boosted their price target on Snap-On from $380.00 to $395.00 and gave the company a "neutral" rating in a research note on Friday, April 24th. Wall Street Zen downgraded Snap-On from a "buy" rating to a "hold" rating in a research note on Saturday, February 7th. Finally, Roth Mkm reaffirmed a "buy" rating and issued a $431.00 price target on shares of Snap-On in a research note on Friday, April 24th. One research analyst has rated the stock with a Strong Buy rating, four have given a Buy rating, one has given a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, Snap-On presently has a consensus rating of "Moderate Buy" and a consensus price target of $387.67.

Snap-On Trading Up 0.6%

Shares of Snap-On stock opened at $374.53 on Thursday. The stock has a market cap of $19.40 billion, a PE ratio of 19.34, a PEG ratio of 2.62 and a beta of 0.75. The firm has a 50-day moving average of $371.10 and a 200-day moving average of $363.95. Snap-On has a 52-week low of $301.82 and a 52-week high of $400.88. The company has a debt-to-equity ratio of 0.15, a quick ratio of 2.74 and a current ratio of 3.53.

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 analysts' consensus estimates of $4.75 by ($0.06). The company had revenue of $1.21 billion during the quarter, compared to analyst estimates of $1.19 billion. Snap-On had a net margin of 21.28% and a return on equity of 17.13%. The firm's revenue for the quarter was up 5.8% compared to the same quarter last year. During the same period last year, the firm earned $4.51 EPS. As a group, sell-side analysts forecast that Snap-On will post 19.7 EPS for the current year.

Snap-On declared that its Board of Directors has approved a stock buyback program on Thursday, April 30th that allows the company to buyback $500.00 million in shares. This buyback authorization allows the company to reacquire up to 2.6% of its shares through open market purchases. Shares buyback programs are typically an indication that the company's management believes its shares are undervalued.

Insider Activity

In other Snap-On news, CEO Nicholas T. Pinchuk sold 23,396 shares of the business's stock in a transaction dated Tuesday, May 5th. The stock was sold at an average price of $375.77, for a total transaction of $8,791,514.92. Following the completion of the transaction, the chief executive officer owned 856,918 shares of the company's stock, valued at approximately $322,004,076.86. The trade was a 2.66% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Aldo John Pagliari sold 5,713 shares of the business's stock in a transaction dated Thursday, May 14th. The stock was sold at an average price of $367.19, for a total value of $2,097,756.47. Following the transaction, the chief financial officer directly owned 119,488 shares of the company's stock, valued at approximately $43,874,798.72. The trade was a 4.56% 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. 3.80% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Several institutional investors have recently bought and sold shares of the business. Cozad Asset Management Inc. raised its stake in Snap-On by 3.6% during the first quarter. Cozad Asset Management Inc. now owns 7,675 shares of the company's stock worth $2,788,000 after acquiring an additional 264 shares in the last quarter. Axiom Investment Management LLC acquired a new position in shares of Snap-On in the first quarter valued at approximately $118,000. Western Wealth Management LLC acquired a new position in shares of Snap-On in the first quarter valued at approximately $29,000. Bank of America Corp DE increased its stake in shares of Snap-On by 0.4% in the first quarter. Bank of America Corp DE now owns 999,497 shares of the company's stock valued at $363,037,000 after buying an additional 3,770 shares during the period. Finally, Kentucky Retirement Systems acquired a new position in shares of Snap-On in the first quarter valued at approximately $1,744,000. Institutional investors and hedge funds own 84.88% of the company's stock.

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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