Zacks Investment Research Downgrades Snap-On Inc. (SNA) to Sell
Snap-On Inc. (NYSE:SNA) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research note issued on Tuesday.
According to Zacks, “Snap-On’s growth remains vulnerable to weakness in certain geographic segments, including the Middle East and Asia-Pacific regions. Also, sustained macro concerns like oil and gas volatility and soft industrial markets are impacting client spending, which is adding to the company’s woes, primarily impacting its industrial business. In recent times, the company has suffered high currency fluctuation risks, which have hampered top line growth and might continue to impact the company’s financials in the coming quarters. Factors like stiff competition and raw materials price volatility add to Snap-On’s woes. However, on the positive side, Snap-On has an excellent earnings surprise history over the trailing four quarters, beating estimates all through. For the last reported quarter, bottom-line performance benefitted from higher operating earnings before financial services and operating expenses.”
Other equities analysts have also issued reports about the company. CL King initiated coverage on Snap-On in a research report on Monday, June 27th. They issued a “buy” rating and a $174.00 price objective for the company. Robert W. Baird reiterated a “buy” rating on shares of Snap-On in a research report on Tuesday, June 28th. One analyst has rated the stock with a sell rating, one has assigned a hold rating, three have given a buy rating and one has assigned a strong buy rating to the stock. The stock has a consensus rating of “Buy” and an average price target of $176.56.
Snap-On (NYSE:SNA) opened at 150.89 on Tuesday. The company’s 50-day moving average is $152.05 and its 200 day moving average is $156.73. Snap-On has a 12 month low of $133.09 and a 12 month high of $174.52. The company has a market cap of $8.76 billion, a price-to-earnings ratio of 17.30 and a beta of 1.32.
Snap-On (NYSE:SNA) last announced its quarterly earnings results on Thursday, July 21st. The company reported $2.36 EPS for the quarter, beating analysts’ consensus estimates of $2.23 by $0.13. The company earned $872.30 million during the quarter, compared to analysts’ expectations of $876.70 million. Snap-On had a return on equity of 20.78% and a net margin of 15.28%. Snap-On’s revenue was up 2.4% on a year-over-year basis. During the same period in the prior year, the business posted $2.03 EPS. Equities analysts forecast that Snap-On will post $9.09 earnings per share for the current fiscal year.
The company also recently declared a quarterly dividend, which was paid on Friday, September 9th. Shareholders of record on Friday, August 19th were given a dividend of $0.61 per share. This represents a $2.44 dividend on an annualized basis and a yield of 1.62%. The ex-dividend date of this dividend was Wednesday, August 17th. Snap-On’s dividend payout ratio (DPR) is currently 27.98%.
In other Snap-On news, VP Iain Boyd sold 3,500 shares of the company’s stock in a transaction that occurred on Tuesday, July 26th. The stock was sold at an average price of $157.97, for a total transaction of $552,895.00. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. Also, SVP Thomas J. Ward sold 42,000 shares of the company’s stock in a transaction that occurred on Thursday, September 8th. The stock was sold at an average price of $151.60, for a total value of $6,367,200.00. The disclosure for this sale can be found here. Company insiders own 3.40% of the company’s stock.
Institutional investors have recently added to or reduced their stakes in the company. Kentucky Retirement Systems Insurance Trust Fund purchased a new position in Snap-On during the second quarter worth $371,000. Kentucky Retirement Systems purchased a new position in Snap-On during the second quarter worth $780,000. Mason Street Advisors LLC bought a new stake in Snap-On during the second quarter valued at approximately $1,236,000. Northwestern Mutual Wealth Management Co. increased its stake in Snap-On by 117.4% in the second quarter. Northwestern Mutual Wealth Management Co. now owns 776 shares of the company’s stock valued at $122,000 after buying an additional 419 shares during the last quarter. Finally, Investment Centers of America Inc. increased its stake in Snap-On by 19.3% in the second quarter. Investment Centers of America Inc. now owns 1,973 shares of the company’s stock valued at $311,000 after buying an additional 319 shares during the last quarter. 84.72% of the stock is owned by hedge funds and other institutional investors.
Snap-On Incorporated is a manufacturer and marketer of tools, equipment, diagnostics, repair information and systems solutions for professional users. The Company’s segments include Commercial & Industrial Group, the Snap-on Tools Group, the Repair Systems & Information Group and Financial Services. Its Commercial & Industrial Group segment consists of business operations serving a range of industrial and commercial customers across the world.
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