Snap-On (NYSE:SNA) Hits New 52-Week High – Time to Buy?

Snap-On Incorporated (NYSE:SNA) shares hit a new 52-week high on Tuesday . The company traded as high as $420.17 and last traded at $419.6530, with a volume of 44588 shares traded. The stock had previously closed at $407.42.

Wall Street Analyst Weigh In

SNA has been the subject of a number of recent analyst reports. Roth Capital reiterated a “buy” rating and issued a $461.00 price target (up from $409.00) on shares of Snap-On in a research note on Friday. Weiss Ratings restated a “buy (b)” rating on shares of Snap-On in a research note on Friday, July 17th. Barclays started coverage on shares of Snap-On in a report on Thursday, May 28th. They issued an “overweight” rating and a $420.00 target price on the stock. Finally, Robert W. Baird set a $415.00 price target on Snap-On in a report on Friday. Five analysts have rated the stock with a Buy rating and one has given a Hold rating to the company. According to data from MarketBeat, the company presently has an average rating of “Moderate Buy” and an average target price of $418.20.

Snap-On Price Performance

The stock has a market capitalization of $21.57 billion, a price-to-earnings ratio of 21.26, a P/E/G ratio of 2.85 and a beta of 0.73. The company’s 50-day simple moving average is $390.45 and its 200-day simple moving average is $378.91. The company has a debt-to-equity ratio of 0.15, a current ratio of 3.43 and a quick ratio of 2.64.

Snap-On (NYSE:SNA) last posted its earnings results on Thursday, July 23rd. The company reported $4.96 EPS for the quarter, beating the consensus estimate of $4.95 by $0.01. The company had revenue of $1.24 billion for the quarter, compared to the consensus estimate of $1.22 billion. Snap-On had a return on equity of 17.07% and a net margin of 21.25%.The firm’s revenue for the quarter was up 4.7% on a year-over-year basis. During the same quarter in the prior year, the business earned $4.72 earnings per share. Research analysts forecast that Snap-On Incorporated will post 19.67 earnings per share for the current fiscal year.

Snap-On Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Wednesday, June 10th. Shareholders of record on Wednesday, May 20th were given a dividend of $2.44 per share. This represents a $9.76 dividend on an annualized basis and a dividend yield of 2.3%. The ex-dividend date was Wednesday, May 20th. Snap-On’s dividend payout ratio is presently 49.77%.

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 outstanding shares. This buyback authorization allows the company to purchase up to 2.5% of its shares through open market purchases. Shares buyback programs are typically a sign that the company’s management believes its shares are undervalued.

Insiders Place Their Bets

In other news, CFO Aldo John Pagliari sold 1,330 shares of the company’s stock in a transaction on Thursday, June 4th. The stock was sold at an average price of $379.27, for a total transaction of $504,429.10. Following the completion of the sale, the chief financial officer directly owned 118,158 shares in the company, valued at approximately $44,813,784.66. This represents a 1.11% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, VP Richard Thomas Miller sold 2,000 shares of the stock in a transaction on Wednesday, July 1st. The stock was sold at an average price of $405.92, for a total value of $811,840.00. Following the sale, the vice president directly owned 4,529 shares in the company, valued at approximately $1,838,411.68. This trade represents a 30.63% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 37,506 shares of company stock valued at $14,167,081 in the last quarter. Company insiders own 3.80% of the company’s stock.

Institutional Investors Weigh In On Snap-On

Several institutional investors and hedge funds have recently bought and sold shares of the company. Wedge Capital Management L L P NC raised its position in shares of Snap-On by 12.4% in the 2nd quarter. Wedge Capital Management L L P NC now owns 34,335 shares of the company’s stock valued at $13,816,000 after buying an additional 3,794 shares in the last quarter. E. Ohman J or Asset Management AB raised its position in Snap-On by 49.6% during the second quarter. E. Ohman J or Asset Management AB now owns 2,110 shares of the company’s stock valued at $849,000 after purchasing an additional 700 shares in the last quarter. Wealthcare Advisory Partners LLC acquired a new position in Snap-On during the second quarter valued at approximately $264,000. Harrell Investment Partners LLC lifted its stake in Snap-On by 12.0% during the second quarter. Harrell Investment Partners LLC now owns 2,636 shares of the company’s stock worth $1,061,000 after purchasing an additional 283 shares during the last quarter. Finally, Wynn Capital LLC bought a new stake in Snap-On during the second quarter worth $215,000. Institutional investors own 84.88% 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.