Snap-On (NYSE:SNA) Sets New 12-Month High – Still a Buy?

Snap-On Incorporated (NYSE:SNA)’s stock price hit a new 52-week high during trading on Thursday . The company traded as high as $403.35 and last traded at $402.11, with a volume of 65707 shares traded. The stock had previously closed at $392.14.

Snap-On News Summary

Here are the key news stories impacting Snap-On this week:

• Positive Sentiment: Snap-On received an average analyst rating of “Moderate Buy,” which can support investor confidence in the stock. Snap-On Incorporated (NYSE:SNA) Receives Average Rating of “Moderate Buy” from Analysts
• Positive Sentiment: A Zacks piece highlighted Snap-On’s operational agility, RCI plan, and innovation efforts as potential growth drivers, reinforcing the case for continued fundamental strength. Will Snap-on’s Operational Agility, RCI Plan & Innovations Aid Growth?
• Neutral Sentiment: Multiple articles reported that a federal judge blocked or voided SNAP restrictions on soda and candy in several states. These stories are about U.S. food-assistance policy and appear indirectly related to Snap-On, with limited direct impact on the company’s business. Federal judge blocks USDA’s SNAP restrictions on soda, candy in five states
• Neutral Sentiment: Additional coverage questioned the controversy around SNAP soda and candy bans, but this appears to be a policy discussion rather than a direct catalyst for Snap-On Incorporated (SNA). Why SNAP soda and candy bans are controversial

Analysts Set New Price Targets

SNA has been the topic of a number of research reports. Weiss Ratings reiterated a “buy (b)” rating on shares of Snap-On in a research report on Monday, April 20th. Roth Mkm reissued a “buy” rating and issued a $431.00 price target on shares of Snap-On in a report on Friday, April 24th. Barclays initiated coverage on shares of Snap-On in a research report on Thursday, May 28th. They issued an “overweight” rating and a $420.00 price objective for the company. Tigress Financial upped their price objective on Snap-On from $405.00 to $445.00 and gave the stock a “buy” rating in a report on Friday, February 27th. Finally, Robert W. Baird increased their price objective on Snap-On from $380.00 to $395.00 and gave the company a “neutral” rating in a research report on Friday, April 24th. Five equities research analysts have rated the stock with a Buy rating, one has given a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, the company has a consensus rating of “Moderate Buy” and a consensus price target of $387.67.

Snap-On Trading Up 1.4%

The company has a market capitalization of $20.61 billion, a price-to-earnings ratio of 20.54, a P/E/G ratio of 2.71 and a beta of 0.73. The company has a debt-to-equity ratio of 0.15, a quick ratio of 2.74 and a current ratio of 3.53. The business’s 50-day simple moving average is $377.10 and its 200-day simple moving average is $369.96.

Snap-On (NYSE:SNA) last posted its quarterly earnings results on Thursday, April 23rd. The company reported $4.69 earnings per share for the quarter, missing analysts’ consensus estimates of $4.75 by ($0.06). Snap-On had a return on equity of 17.13% and a net margin of 21.28%.The business had revenue of $1.21 billion for the quarter, compared to the consensus estimate of $1.19 billion. During the same period last year, the firm earned $4.51 earnings per share. The company’s quarterly revenue was up 5.8% on a year-over-year basis. On average, research analysts expect that Snap-On Incorporated will post 19.7 earnings per share for the current fiscal year.

Snap-On Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Wednesday, June 10th. Stockholders of record on Wednesday, May 20th were paid a $2.44 dividend. The ex-dividend date of this dividend was Wednesday, May 20th. This represents a $9.76 dividend on an annualized basis and a dividend yield of 2.5%. Snap-On’s dividend payout ratio is 50.39%.

Snap-On declared that its board has authorized a share buyback plan on Thursday, April 30th that authorizes the company to repurchase $500.00 million in outstanding shares. This repurchase authorization authorizes the company to reacquire up to 2.5% of its shares through open market purchases. Shares repurchase plans are often an indication that the company’s leadership believes its stock is undervalued.

Insider Buying and Selling

In related news, CEO Nicholas T. Pinchuk sold 23,396 shares of Snap-On stock in a transaction on Tuesday, May 5th. The stock was sold at an average price of $375.77, for a total transaction of $8,791,514.92. Following the completion of the sale, the chief executive officer directly owned 856,918 shares of the company’s stock, valued at $322,004,076.86. The trade was a 2.66% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Aldo John Pagliari sold 5,713 shares of the company’s stock in a transaction dated Thursday, May 14th. The shares were sold at an average price of $367.19, for a total value of $2,097,756.47. Following the completion of the sale, the chief financial officer owned 119,488 shares of the company’s stock, valued at $43,874,798.72. This represents a 4.56% 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 35,117 shares of company stock valued at $13,192,082 over the last 90 days. Company insiders own 3.80% of the company’s stock.

Institutional Trading of Snap-On

A number of hedge funds have recently modified their holdings of the company. Auto Owners Insurance Co grew its holdings in Snap-On by 34,360.0% during the fourth quarter. Auto Owners Insurance Co now owns 1,025,185 shares of the company’s stock valued at $353,279,000 after purchasing an additional 1,022,210 shares during the period. Norges Bank bought a new stake in Snap-On in the fourth quarter valued at approximately $210,814,000. Victory Capital Management Inc. raised its holdings in Snap-On by 346.0% in the third quarter. Victory Capital Management Inc. now owns 279,484 shares of the company’s stock worth $96,850,000 after purchasing an additional 216,813 shares during the period. PFA Pension Forsikringsaktieselskab bought a new position in shares of Snap-On during the fourth quarter worth $69,751,000. Finally, UBS Group AG boosted its position in shares of Snap-On by 30.7% during the fourth quarter. UBS Group AG now owns 617,620 shares of the company’s stock worth $212,832,000 after purchasing an additional 144,926 shares in the last quarter. 84.88% of the stock is currently owned by institutional investors and hedge funds.

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.