Snap-On (NYSE:SNA) Sets New 1-Year High – Here’s Why

Snap-On Incorporated (NYSE:SNA)’s share price hit a new 52-week high during mid-day trading on Wednesday . The company traded as high as $421.16 and last traded at $420.11, with a volume of 30260 shares changing hands. The stock had previously closed at $418.34.

Wall Street Analysts Forecast Growth

A number of analysts recently commented on the stock. Barclays began coverage on shares of Snap-On in a research note on Thursday, May 28th. They set an “overweight” rating and a $420.00 price target on the stock. Weiss Ratings reiterated a “buy (b)” rating on shares of Snap-On in a research note on Friday, July 17th. Roth Capital reissued a “buy” rating and set a $461.00 target price (up from $409.00) on shares of Snap-On in a report on Friday, July 24th. Robert W. Baird set a $415.00 target price on Snap-On in a research report on Friday, July 24th. Finally, Tigress Financial raised their price target on Snap-On from $445.00 to $485.00 and gave the stock a “buy” rating in a report on Friday, July 31st. Five equities research analysts have rated the stock with a Buy rating and one has issued a Hold rating to the company’s stock. According to data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and an average price target of $426.20.

Snap-On Stock Up 0.1%

The company has a quick ratio of 2.64, a current ratio of 3.43 and a debt-to-equity ratio of 0.15. The stock has a 50-day simple moving average of $398.01 and a two-hundred day simple moving average of $381.99. The firm has a market cap of $21.48 billion, a PE ratio of 21.16, a P/E/G ratio of 2.95 and a beta of 0.73.

Snap-On (NYSE:SNA) last posted its quarterly earnings data on Thursday, July 23rd. The company reported $4.96 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $4.95 by $0.01. Snap-On had a return on equity of 17.07% and a net margin of 21.25%.The firm had revenue of $1.24 billion during the quarter, compared to analysts’ expectations of $1.22 billion. During the same period in the prior year, the business earned $4.72 EPS. The company’s revenue for the quarter was up 4.7% compared to the same quarter last year. Analysts expect that Snap-On Incorporated will post 19.7 earnings per share for the current year.

Snap-On Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Thursday, September 10th. Shareholders of record on Wednesday, August 19th will be issued a $2.44 dividend. This represents a $9.76 dividend on an annualized basis and a yield of 2.4%. The ex-dividend date of this dividend is Wednesday, August 19th. Snap-On’s dividend payout ratio (DPR) is 49.77%.

Snap-On announced that its board has initiated a stock buyback program on Thursday, April 30th that allows the company to repurchase $500.00 million in outstanding shares. This repurchase authorization allows the company to purchase up to 2.5% of its shares through open market purchases. Shares repurchase programs are usually a sign that the company’s board of directors believes its shares are undervalued.

Insiders Place Their Bets

In other Snap-On news, CFO Aldo John Pagliari sold 1,330 shares of the business’s stock in a transaction on Thursday, June 4th. The shares were sold at an average price of $379.27, for a total transaction of $504,429.10. Following the transaction, the chief financial officer directly owned 118,158 shares of the company’s stock, valued at approximately $44,813,784.66. The trade was a 1.11% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, SVP Timothy L. Chambers sold 9,111 shares of the business’s stock in a transaction dated Tuesday, July 28th. The shares were sold at an average price of $419.36, for a total transaction of $3,820,788.96. Following the transaction, the senior vice president owned 21,223 shares in the company, valued at $8,900,077.28. This represents a 30.04% 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 have sold a total of 23,221 shares of company stock valued at $9,196,355 in the last 90 days. 3.80% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in SNA. Thurston Springer Miller Herd & Titak Inc. bought a new stake in shares of Snap-On in the fourth quarter worth approximately $25,000. DV Equities LLC bought a new position in Snap-On during the fourth quarter valued at approximately $25,000. Western Wealth Management LLC bought a new position in Snap-On during the first quarter valued at approximately $29,000. Montag A & Associates Inc. boosted its holdings in Snap-On by 331.8% in the fourth quarter. Montag A & Associates Inc. now owns 95 shares of the company’s stock worth $33,000 after purchasing an additional 73 shares during the last quarter. Finally, Quattro Advisors LLC purchased a new stake in Snap-On in the fourth quarter worth approximately $35,000. Hedge funds and other institutional investors 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.