Snap-On (NYSE:SNA) Shares Gap Down on Disappointing Earnings

Shares of Snap-On Incorporated (NYSE:SNA) gapped down prior to trading on Thursday following a dissappointing earnings announcement. The stock had previously closed at $368.91, but opened at $329.90. Snap-On shares last traded at $347.0630, with a volume of 106,335 shares trading hands.

The company reported $4.64 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $4.93 by ($0.29). Snap-On had a net margin of 21.25% and a return on equity of 17.07%. During the same quarter in the prior year, the firm posted $4.71 earnings per share. Snap-On’s revenue was down .6% on a year-over-year basis.

Snap-On Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Thursday, September 10th. Shareholders of record on Wednesday, August 19th were given a $2.44 dividend. The ex-dividend date was Wednesday, August 19th. This represents a $9.76 annualized dividend and a yield of 2.8%. Snap-On’s payout ratio is presently 49.77%.

Analyst Upgrades and Downgrades

A number of research firms have commented on SNA. Tigress Financial boosted their price objective on Snap-On from $445.00 to $485.00 and gave the stock a “buy” rating in a research note on Friday, July 31st. Robert W. Baird set a $415.00 target price on Snap-On in a research note on Friday, July 24th. Barclays cut their price target on Snap-On from $450.00 to $435.00 and set an “overweight” rating for the company in a report on Tuesday, October 6th. Roth Capital reiterated a “buy” rating and set a $461.00 price target (up from $409.00) on shares of Snap-On in a research report on Friday, July 24th. Finally, Weiss Ratings reiterated a “buy (b)” rating on shares of Snap-On in a research report on Thursday, October 15th. Four investment analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the stock. According to MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus price target of $449.00.

Insider Activity at Snap-On

In related news, CEO Nicholas T. Pinchuk sold 22,889 shares of the business’s stock in a transaction that occurred on Tuesday, August 18th. The shares were sold at an average price of $399.69, for a total value of $9,148,504.41. Following the completion of the transaction, the chief executive officer owned 867,779 shares in the company, valued at $346,842,588.51. The trade was a 2.57% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, VP Marty V. Ozolins sold 800 shares of the company’s stock in a transaction on Wednesday, August 26th. The stock was sold at an average price of $400.00, for a total value of $320,000.00. Following the transaction, the vice president directly owned 1,526 shares in the company, valued at approximately $610,400. This represents a 34.39% 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. Insiders sold 38,331 shares of company stock valued at $15,525,200 over the last three months. 3.80% of the stock is owned by company insiders.

Institutional Investors Weigh In On Snap-On

Several hedge funds and other institutional investors have recently made changes to their positions in the company. BlackRock Inc. bought a new stake in shares of Snap-On during the second quarter worth $1,715,363,000. State Street Corp lifted its stake in shares of Snap-On by 2.9% during the second quarter. State Street Corp now owns 2,356,671 shares of the company’s stock valued at $948,324,000 after acquiring an additional 66,754 shares during the period. First Trust Advisors LP boosted its holdings in Snap-On by 3.3% in the first quarter. First Trust Advisors LP now owns 2,033,129 shares of the company’s stock valued at $738,473,000 after acquiring an additional 65,521 shares during the last quarter. Bank of America Corp DE boosted its holdings in 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 acquiring an additional 3,770 shares during the last quarter. Finally, Dimensional Fund Advisors LP boosted its holdings in Snap-On by 2.0% in the first quarter. Dimensional Fund Advisors LP now owns 880,951 shares of the company’s stock valued at $319,955,000 after acquiring an additional 17,337 shares during the last quarter. 84.88% of the stock is owned by institutional investors and hedge funds.

Snap-On Stock Performance

The stock has a 50-day moving average of $377.17 and a 200 day moving average of $384.62. The company has a debt-to-equity ratio of 0.15, a current ratio of 3.43 and a quick ratio of 2.64. The stock has a market capitalization of $18.21 billion, a price-to-earnings ratio of 17.81, a price-to-earnings-growth ratio of 2.43 and a beta of 0.71.

About Snap-On

Snap-on Incorporated is a manufacturer and distributor of professional tools, equipment, diagnostics, and related services. Its offerings include hand and power tools, tool storage, vehicle repair equipment, diagnostic systems, and repair information and management software. The company serves professional users who work in automotive repair, heavy-duty transportation, aviation, agriculture, construction, industrial production, government, and other technical fields.

Snap-on markets products under the Snap-on brand and other brands, including Blue-Point, Bahco, and Williams.