Zacks Investment Research Downgrades Snap-On Inc. (SNA) to Hold
Snap-On Inc. (NYSE:SNA) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research report issued on Monday.
According to Zacks, “Snap-On reported third-quarter 2016 net earnings of $2.22 per share which surpassed the Zacks Consensus Estimate of $2.15 by 3.3%. The bottom line also rose 12.1% on a year-over-year basis, largely attributable to organic top-line growth as well as lower operating and corporate expenses. We believe that Snap-On’s robust “Value Creation Processes” are likely to accelerate its growth momentum. Solid prospects across business segments, diversified portfolio and impressive traction of the newly launched products, continue to add to its strength. However, weakness in certain geographic segments continues to pose a threat to the company’s financials. Also, volatile oil markets, along with weak military sales volumes, will likely hinder the company’s growth. This apart, factors like stiff competition, volatility in price of raw materials and high currency fluctuation add to the company’s woes.”
Snap-On (NYSE:SNA) opened at 167.80 on Monday. Snap-On has a 52-week low of $133.09 and a 52-week high of $174.52. The firm’s 50-day moving average price is $153.23 and its 200 day moving average price is $155.76. The company has a market cap of $9.74 billion, a PE ratio of 18.73 and a beta of 1.08.
Snap-On (NYSE:SNA) last announced its quarterly earnings data on Thursday, October 20th. The company reported $2.22 EPS for the quarter, beating the Zacks’ consensus estimate of $2.15 by $0.07. Snap-On had a return on equity of 20.73% and a net margin of 15.67%. The firm earned $834.10 million during the quarter, compared to analysts’ expectations of $709.70 million. During the same quarter last year, the firm posted $1.98 earnings per share. The company’s revenue for the quarter was up 1.5% compared to the same quarter last year. On average, equities analysts predict that Snap-On will post $9.14 EPS for the current fiscal year.
The business also recently announced a quarterly dividend, which will be paid on Friday, December 9th. Investors of record on Friday, November 18th will be given a dividend of $0.71 per share. This is a boost from Snap-On’s previous quarterly dividend of $0.61. The ex-dividend date is Wednesday, November 16th. This represents a $2.84 annualized dividend and a dividend yield of 1.69%. Snap-On’s payout ratio is presently 27.23%.
In related news, SVP Thomas J. Ward sold 42,000 shares of Snap-On stock in a transaction that occurred on Thursday, September 8th. The stock was sold at an average price of $151.60, for a total transaction of $6,367,200.00. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, VP Constance Johnsen sold 4,833 shares of Snap-On stock in a transaction that occurred on Thursday, November 10th. The shares were sold at an average price of $163.54, for a total value of $790,388.82. Following the transaction, the vice president now directly owns 2,698 shares in the company, valued at approximately $441,230.92. The disclosure for this sale can be found here. Corporate insiders own 3.40% of the company’s stock.
Hedge funds and other institutional investors have recently made changes to their positions in the stock. Wellington Management Group LLP boosted its position in shares of Snap-On by 24,926.3% in the first quarter. Wellington Management Group LLP now owns 478,253 shares of the company’s stock valued at $75,081,000 after buying an additional 476,342 shares during the last quarter. HBK Investments L P bought a new position in shares of Snap-On during the first quarter valued at about $361,000. Renaissance Technologies LLC bought a new position in shares of Snap-On during the first quarter valued at about $28,855,000. AMP Capital Investors Ltd boosted its position in shares of Snap-On by 22.9% in the first quarter. AMP Capital Investors Ltd now owns 24,674 shares of the company’s stock valued at $3,911,000 after buying an additional 4,600 shares during the last quarter. Finally, National Pension Service boosted its position in shares of Snap-On by 4.6% in the first quarter. National Pension Service now owns 42,719 shares of the company’s stock valued at $6,706,000 after buying an additional 1,869 shares during the last quarter. 86.91% of the stock is currently owned by institutional investors.
Snap-On Company Profile
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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