Snap-on (NYSE:SNA) Shares Up 6.7% – Time to Buy?

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

Wall Street Analyst Weigh In

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

Snap-on Stock Performance

The business has a 50-day moving average of $281.47 and a 200 day moving average of $276.05. The company has a debt-to-equity ratio of 0.22, a current ratio of 4.06 and a quick ratio of 3.05. The company 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 the consensus estimate of $4.94 by $0.13. The firm had revenue of $1.18 billion during the quarter, compared to analyst estimates of $1.20 billion. Snap-on had a net margin of 21.90% and a return on equity of 19.90%. The business’s revenue for the quarter was down 1.0% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $4.89 EPS. Equities research analysts anticipate 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. Shareholders of record on Monday, August 19th were given a $1.86 dividend. The ex-dividend date of this dividend was Monday, August 19th. This represents a $7.44 annualized dividend and a yield of 2.30%. Snap-on’s payout ratio is presently 38.67%.

Snap-on announced that its Board of Directors has initiated a share repurchase plan on Thursday, August 8th that allows the company to buyback $500.00 million in shares. This buyback authorization allows the company to reacquire up to 3.5% of its shares through open market purchases. Shares buyback plans are generally an indication that the company’s board of directors believes its stock is undervalued.

Insider Activity

In related news, VP June C. Lemerand sold 1,186 shares of Snap-on stock in a transaction on Monday, August 26th. The stock was sold at an average price of $283.97, for a total transaction of $336,788.42. Following the transaction, the vice president now directly owns 2,283 shares in the company, valued at approximately $648,303.51. The trade was a 0.00 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. In other news, VP June C. Lemerand sold 1,186 shares of the firm’s stock in a transaction on Monday, August 26th. The shares were sold at an average price of $283.97, for a total transaction of $336,788.42. Following the sale, the vice president now directly owns 2,283 shares in the company, valued at $648,303.51. This trade represents a 0.00 % decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Also, CEO Nicholas T. Pinchuk sold 24,145 shares of the company’s stock in a transaction on 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 transaction, the chief executive officer now directly owns 759,019 shares of the company’s stock, valued at $204,138,160.05. This represents a 0.00 % decrease in their position. The disclosure for this sale can be found here. Insiders sold a total of 35,848 shares of company stock valued at $9,884,486 in the last 90 days. Company insiders own 4.10% of the company’s stock.

Institutional Trading of Snap-on

Several institutional investors and hedge funds have recently added to or reduced their stakes in the business. Mawer Investment Management Ltd. grew its holdings in Snap-on by 234.7% during the 2nd quarter. Mawer Investment Management Ltd. now owns 632,226 shares of the company’s stock valued at $165,258,000 after buying an additional 443,333 shares in the last quarter. Pacer Advisors Inc. grew its stake in Snap-on by 51.2% during the second quarter. Pacer Advisors Inc. now owns 829,471 shares of the company’s stock valued at $216,815,000 after acquiring an additional 280,997 shares in the last quarter. Millennium Management LLC lifted its stake in Snap-on by 1,786.4% in the 2nd quarter. Millennium Management LLC now owns 161,175 shares of the company’s stock worth $42,130,000 after purchasing an additional 152,631 shares in the last quarter. Glassman Wealth Services purchased a new position in shares of Snap-on during the second quarter valued at about $26,608,000. Finally, Earnest Partners LLC grew its position in shares of Snap-on by 9.9% during the first quarter. Earnest Partners LLC now owns 929,710 shares of the company’s stock valued at $275,399,000 after purchasing an additional 83,686 shares in the last quarter. Institutional investors own 84.88% of the company’s stock.

About Snap-on

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.