Snap-On Incorporated (SNA) Downgraded by Zacks Investment Research to “Sell”
Snap-On Incorporated (NYSE:SNA) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a report issued on Tuesday.
According to Zacks, “Tough macroeconomic conditions have been plaguing Snap-On in recent times. Sluggish oil and gas market activity and softness in industrial markets continue to negatively impact Snap-on’s revenues. Also, instability in the credit and financial markets and lower business & consumer spending will hurt its prospects. This apart, volatility in price of raw materials and ongoing sluggishness in Tools Storage products add to the company’s woes. In addition, over the past three months, Snap-on’s shares have underperformed the industry's average decline. On the positive side, Snap-On has a robust earnings surprise history over the trailing four quarters, having beaten estimates all through. Also, the company has been witnessing encouraging prospects in most of its business lines that will likely unlock new growth avenues going forward.”
A number of other equities analysts also recently issued reports on the stock. BidaskClub downgraded shares of Snap-On from a “sell” rating to a “strong sell” rating in a report on Wednesday, August 23rd. Longbow Research downgraded shares of Snap-On from a “buy” rating to a “neutral” rating in a report on Monday, August 21st. Robert W. Baird reaffirmed an “outperform” rating and set a $197.00 price objective on shares of Snap-On in a report on Wednesday, August 2nd. FBR & Co set a $205.00 price objective on shares of Snap-On and gave the stock a “buy” rating in a report on Friday, July 21st. Finally, Jefferies Group LLC reaffirmed a “hold” rating and set a $175.00 price objective on shares of Snap-On in a report on Thursday, July 6th. Two analysts have rated the stock with a sell rating, two have assigned a hold rating and five have assigned a buy rating to the stock. The stock presently has an average rating of “Hold” and a consensus target price of $197.00.
Snap-On (SNA) traded up 0.22% during mid-day trading on Tuesday, reaching $152.36. 131,746 shares of the company’s stock traded hands. The company has a 50 day moving average price of $148.30 and a 200-day moving average price of $156.64. The stock has a market cap of $8.77 billion, a P/E ratio of 15.77 and a beta of 1.05. Snap-On has a 12 month low of $140.83 and a 12 month high of $181.73.
Snap-On (NYSE:SNA) last posted its quarterly earnings data on Thursday, July 20th. The company reported $2.60 earnings per share (EPS) for the quarter, topping the Zacks’ consensus estimate of $2.55 by $0.05. The firm had revenue of $921.40 million for the quarter, compared to the consensus estimate of $920.87 million. Snap-On had a net margin of 16.22% and a return on equity of 20.90%. The business’s revenue for the quarter was up 5.6% compared to the same quarter last year. During the same period in the previous year, the firm earned $2.36 EPS. On average, analysts anticipate that Snap-On will post $10.09 EPS for the current year.
Snap-On declared that its Board of Directors has authorized a share buyback program on Monday, August 7th that authorizes the company to repurchase $500.00 million in outstanding shares. This repurchase authorization authorizes the company to purchase shares of its stock through open market purchases. Shares repurchase programs are often a sign that the company’s board believes its shares are undervalued.
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In related news, VP Iain Boyd sold 18,418 shares of the business’s stock in a transaction dated Monday, July 24th. The shares were sold at an average price of $147.54, for a total value of $2,717,391.72. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, Director Ruth Ann M. Gillis purchased 265 shares of the business’s stock in a transaction that occurred on Friday, August 4th. The stock was bought at an average cost of $152.58 per share, for a total transaction of $40,433.70. The disclosure for this purchase can be found here. 3.70% of the stock is currently owned by insiders.
Several large investors have recently modified their holdings of the stock. Vanguard Group Inc. boosted its holdings in shares of Snap-On by 2.8% in the 2nd quarter. Vanguard Group Inc. now owns 5,634,205 shares of the company’s stock worth $890,204,000 after buying an additional 151,800 shares during the last quarter. BlackRock Inc. boosted its holdings in shares of Snap-On by 0.8% in the 2nd quarter. BlackRock Inc. now owns 3,665,849 shares of the company’s stock worth $579,203,000 after buying an additional 27,641 shares during the last quarter. State Street Corp boosted its holdings in shares of Snap-On by 4.3% in the 1st quarter. State Street Corp now owns 2,505,691 shares of the company’s stock worth $422,636,000 after buying an additional 102,268 shares during the last quarter. Schroder Investment Management Group boosted its holdings in shares of Snap-On by 59.2% in the 2nd quarter. Schroder Investment Management Group now owns 1,136,354 shares of the company’s stock worth $177,850,000 after buying an additional 422,366 shares during the last quarter. Finally, Koch Industries Inc. boosted its holdings in shares of Snap-On by 64,484.7% in the 2nd quarter. Koch Industries Inc. now owns 917,748 shares of the company’s stock worth $912,000 after buying an additional 916,327 shares during the last quarter. 93.13% of the stock is currently owned by institutional investors.
Snap-on Incorporated is a manufacturer and marketer of tools, equipment, diagnostics, repair information and systems solutions. The Company’s segments include the Commercial & Industrial Group, the Snap-on Tools Group, the Repair Systems & Information Group, and Financial Services. The Commercial & Industrial Group consists of business operations serving a range of industrial and commercial customers, including customers in the aerospace, natural resources, government, power generation, transportation and technical education markets.
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