Snap-on (NYSE:SNA) Shares Up 6.7% – What’s Next?

Snap-on Incorporated (NYSE:SNA) shares shot up 6.7% on Thursday . The company traded as high as $317.93 and last traded at $317.93. 86,414 shares were traded during mid-day trading, a decline of 70% from the average session volume of 292,344 shares. The stock had previously closed at $298.08.

Analyst Upgrades and Downgrades

SNA has been the topic of several recent research reports. Robert W. Baird reduced their target price on shares of Snap-on from $282.00 to $275.00 and set a “neutral” rating on the stock in a report on Friday, July 12th. Roth Mkm reaffirmed a “buy” rating and set a $324.00 price objective on shares of Snap-on in a research note on Tuesday, July 16th. Barrington Research reissued an “outperform” rating and issued a $325.00 target price on shares of Snap-on in a research note on Friday, September 20th. Finally, Tigress Financial restated a “buy” rating and set a $336.00 target price on shares of Snap-on in a report on Thursday, July 25th.

Snap-on Price Performance

The company has a quick ratio of 3.05, a current ratio of 4.06 and a debt-to-equity ratio of 0.22. The business’s 50-day simple moving average is $281.47 and its 200-day simple moving average is $276.05. The stock has a market cap of $17.05 billion, a PE ratio of 16.83, a PEG ratio of 2.06 and a beta of 0.98.

Snap-on (NYSE:SNA) last released its quarterly earnings results on Thursday, July 18th. The company reported $5.07 EPS for the quarter, beating analysts’ consensus estimates of $4.94 by $0.13. The business had revenue of $1.18 billion during the quarter, compared to analyst estimates of $1.20 billion. Snap-on had a return on equity of 19.90% and a net margin of 21.90%. Snap-on’s quarterly revenue was down 1.0% compared to the same quarter last year. During the same quarter in the prior year, the company posted $4.89 EPS. On average, research analysts expect that Snap-on Incorporated will post 18.95 EPS for the current fiscal year.

Snap-on Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Tuesday, September 10th. Investors of record on Monday, August 19th were paid a $1.86 dividend. This represents a $7.44 dividend on an annualized basis and a yield of 2.30%. The ex-dividend date of this dividend was Monday, August 19th. Snap-on’s payout ratio is 38.67%.

Snap-on declared that its Board of Directors has initiated a share buyback plan on Thursday, August 8th that authorizes the company to buyback $500.00 million in outstanding shares. This buyback authorization authorizes the company to purchase up to 3.5% of its shares through open market purchases. Shares buyback plans are generally an indication that the company’s management believes its shares are undervalued.

Insiders Place Their Bets

In other news, CEO Nicholas T. Pinchuk sold 24,145 shares of Snap-on stock in a transaction dated Monday, August 12th. The shares were sold at an average price of $268.95, for a total transaction of $6,493,797.75. Following the sale, the chief executive officer now owns 759,019 shares of the company’s stock, valued at approximately $204,138,160.05. The trade was a 0.00 % decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. In other Snap-on news, CFO Aldo John Pagliari sold 4,473 shares of the stock in a transaction on Thursday, August 22nd. The stock was sold at an average price of $278.74, for a total value of $1,246,804.02. Following the completion of the transaction, the chief financial officer now owns 99,244 shares in the company, valued at approximately $27,663,272.56. This represents a 0.00 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, CEO Nicholas T. Pinchuk sold 24,145 shares of the company’s stock in a transaction dated Monday, August 12th. The stock was sold at an average price of $268.95, for a total transaction of $6,493,797.75. Following the completion of the sale, the chief executive officer now directly owns 759,019 shares in the company, valued at $204,138,160.05. This represents a 0.00 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last ninety days, insiders sold 35,848 shares of company stock worth $9,884,486. 4.10% of the stock is currently owned by corporate insiders.

Institutional Trading of Snap-on

Several hedge funds and other institutional investors have recently made changes to their positions in the stock. Scarborough Advisors LLC bought a new stake in Snap-on in the fourth quarter worth $30,000. Opal Wealth Advisors LLC purchased a new stake in Snap-on during the 2nd quarter valued at about $30,000. Innealta Capital LLC bought a new stake in Snap-on during the 2nd quarter valued at about $32,000. Massmutual Trust Co. FSB ADV raised its holdings in Snap-on by 53.0% in the third quarter. Massmutual Trust Co. FSB ADV now owns 127 shares of the company’s stock worth $37,000 after buying an additional 44 shares during the last quarter. Finally, Quarry LP raised its holdings in Snap-on by 244.7% in the second quarter. Quarry LP now owns 162 shares of the company’s stock worth $42,000 after buying an additional 115 shares during the last quarter. Hedge funds and other institutional investors own 84.88% of the company’s stock.

Snap-on Company Profile

Snap-on Incorporated manufactures and markets tools, equipment, diagnostics, and repair information and systems solutions for professional users worldwide. It operates through Commercial & Industrial Group, Snap-on Tools Group, Repair Systems & Information Group, and Financial Services segments.