Zacks Investment Research Upgrades Snap-On Inc. (SNA) to “Buy”
Snap-On Inc. (NYSE:SNA) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a research note issued on Tuesday. The brokerage currently has a $188.00 price target on the stock. Zacks Investment Research’s price objective points to a potential upside of 12.84% from the stock’s previous close.
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. Snap-on has devised a comprehensive blueprint to drive long-run growth, which focuses on three critical areas, namely enhancing franchise network, expanding footprint in vehicle repair garage & vital industries, and penetrating emerging markets. We believe that Snap-On’s robust “Value Creation Processes” are likely to accelerate its growth momentum. Solid prospects across three of its four business segments, diversified portfolio and impressive traction of the newly launched products, continue to add to its strength. However, sluggish oil market activities and high currency fluctuation risks raise concerns.”
Shares of Snap-On (NYSE:SNA) opened at 166.61 on Tuesday. The stock has a market capitalization of $9.67 billion, a price-to-earnings ratio of 18.59 and a beta of 1.08. The company has a 50-day moving average price of $154.59 and a 200-day moving average price of $155.86. Snap-On has a 52-week low of $133.09 and a 52-week high of $174.52.
Snap-On (NYSE:SNA) last announced its quarterly earnings results on Thursday, October 20th. The company reported $2.22 EPS for the quarter, topping the Zacks’ consensus estimate of $2.15 by $0.07. The business had revenue of $834.10 million for the quarter, compared to analysts’ expectations of $709.70 million. Snap-On had a return on equity of 20.73% and a net margin of 15.67%. The business’s quarterly revenue was up 1.5% on a year-over-year basis. During the same period in the previous year, the firm earned $1.98 EPS. On average, equities analysts anticipate that Snap-On will post $9.14 earnings per share for the current year.
The business also recently declared a quarterly dividend, which will be paid on Friday, December 9th. Shareholders of record on Friday, November 18th will be paid a $0.71 dividend. This is a boost from Snap-On’s previous quarterly dividend of $0.61. This represents a $2.84 dividend on an annualized basis and a yield of 1.70%. The ex-dividend date of this dividend is Wednesday, November 16th. Snap-On’s payout ratio is 27.23%.
In other 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 value of $6,367,200.00. The sale was disclosed in a document filed with the SEC, which is available through this link. Also, VP Constance Johnsen sold 4,833 shares of Snap-On stock in a transaction that occurred on Thursday, November 10th. The stock was sold at an average price of $163.54, for a total value of $790,388.82. Following the completion of the sale, the vice president now owns 2,698 shares in the company, valued at $441,230.92. The disclosure for this sale can be found here. 3.40% of the stock is owned by company insiders.
Several large investors have recently modified their holdings of the company. Wellington Management Group LLP raised its stake 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 worth $75,081,000 after buying an additional 476,342 shares in the last quarter. HBK Investments L P acquired a new stake in shares of Snap-On during the first quarter worth $361,000. Renaissance Technologies LLC acquired a new stake in shares of Snap-On during the first quarter worth $28,855,000. AMP Capital Investors Ltd raised its stake 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 worth $3,911,000 after buying an additional 4,600 shares in the last quarter. Finally, National Pension Service raised its stake 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 worth $6,706,000 after buying an additional 1,869 shares in the last quarter. Hedge funds and other institutional investors own 86.91% of the company’s stock.
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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