Stock Repurchase Program Initiated by Snap-On (NYSE:SNA)

Key Points

• Snap‑On's Board authorized a $500.00 million share repurchase program, permitting buybacks of up to 2.6% of outstanding shares via open‑market purchases.
• For the quarter ended April 23, Snap‑On reported EPS $4.69 (missed consensus by $0.06) with revenue of $1.21 billion, up 5.8% year‑over‑year.
• The company paid a quarterly dividend of $2.44 (annualized $9.76, ~2.5% yield), while insiders sold about 39,650 shares (~$15.2 million) in the past 90 days, leaving insiders owning 3.8% of the stock.

Snap-On (NYSE:SNA - Get Free Report) announced that its Board of Directors has initiated a share repurchase program on Thursday, April 30th, RTT News reports. The company plans to buyback $500.00 million in outstanding shares. This buyback authorization permits the company to purchase up to 2.6% of its stock through open market purchases. Stock buyback programs are typically a sign that the company's leadership believes its stock is undervalued.

Snap-On Price Performance

Shares of SNA stock traded up $5.54 on Thursday, reaching $384.00. The company had a trading volume of 293,757 shares, compared to its average volume of 400,239. The stock has a market capitalization of $19.89 billion, a PE ratio of 19.82, a price-to-earnings-growth ratio of 2.66 and a beta of 0.77. 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 has a one year low of $301.82 and a one year high of $400.88. The business's 50-day moving average is $374.37 and its 200 day moving average is $360.04.

Snap-On (NYSE:SNA - Get Free Report) last posted its 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 the consensus estimate of $1.19 billion. Snap-On had a return on equity of 17.13% and a net margin of 21.28%.The firm's revenue was up 5.8% compared to the same quarter last year. During the same period last year, the company posted $4.51 EPS. Equities research analysts forecast that Snap-On will post 19.75 EPS for the current fiscal year.

Snap-On Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Tuesday, March 10th. Investors of record on Tuesday, February 24th were issued a $2.44 dividend. This represents a $9.76 dividend on an annualized basis and a yield of 2.5%. The ex-dividend date was Tuesday, February 24th. Snap-On's dividend payout ratio (DPR) is 50.39%.

Analyst Upgrades and Downgrades

A number of brokerages have issued reports on SNA. Tigress Financial increased their price objective on shares of Snap-On from $405.00 to $445.00 and gave the stock a "buy" rating in a research note on Friday, February 27th. Roth Mkm reiterated a "buy" rating and set a $431.00 price objective on shares of Snap-On in a research note on Friday, April 24th. Robert W. Baird increased 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 reiterated a "buy (b)" rating on shares of Snap-On in a research note on Monday, April 20th. Finally, Wall Street Zen downgraded shares of Snap-On from a "buy" rating to a "hold" rating in a research note on Saturday, February 7th. Four equities research analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and a consensus target price of $381.20.

Insider Buying and Selling at Snap-On

In related news, VP June C. Lemerand sold 1,378 shares of the firm's stock in a transaction that occurred on Wednesday, February 25th. The shares were sold at an average price of $387.57, for a total value of $534,071.46. Following the completion of the transaction, the vice president owned 2,913 shares in the company, valued at $1,128,991.41. This trade represents a 32.11% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, CFO Aldo John Pagliari sold 7,043 shares of the firm's stock in a transaction that occurred on Thursday, February 19th. The shares were sold at an average price of $382.05, for a total transaction of $2,690,778.15. Following the completion of the transaction, the chief financial officer owned 117,183 shares of the company's stock, valued at approximately $44,769,765.15. This trade represents a 5.67% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold 39,650 shares of company stock worth $15,210,959 in the last 90 days. Corporate insiders own 3.80% 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.