Snap-On (NYSE:SNA) Reaches New 1-Year High – Should You Buy?

Snap-On Incorporated (NYSE:SNA)’s share price hit a new 52-week high during mid-day trading on Tuesday . The stock traded as high as $414.62 and last traded at $414.07, with a volume of 368854 shares trading hands. The stock had previously closed at $412.09.

Wall Street Analyst Weigh In

SNA has been the subject of several research reports. Weiss Ratings reaffirmed a “buy (b)” rating on shares of Snap-On in a research note on Monday, April 20th. Robert W. Baird lifted their target price on shares of Snap-On from $380.00 to $395.00 and gave the stock a “neutral” rating in a research report on Friday, April 24th. Barclays started coverage on shares of Snap-On in a research note on Thursday, May 28th. They issued an “overweight” rating and a $420.00 price target for the company. Finally, Roth Capital restated a “buy” rating and set a $431.00 price target on shares of Snap-On in a research report on Friday, April 24th. Five analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and a consensus price target of $387.67.

Snap-On Trading Down 1.8%

The company has a debt-to-equity ratio of 0.15, a quick ratio of 2.74 and a current ratio of 3.53. The firm has a market capitalization of $20.79 billion, a PE ratio of 20.72, a P/E/G ratio of 2.88 and a beta of 0.73. The stock’s 50-day simple moving average is $382.05 and its 200-day simple moving average is $373.96.

Snap-On (NYSE:SNA) last posted its earnings results on Thursday, April 23rd. The company reported $4.69 EPS for the quarter, missing the consensus estimate of $4.75 by ($0.06). Snap-On had a return on equity of 17.13% and a net margin of 21.28%.The company had revenue of $1.21 billion during the quarter, compared to analysts’ expectations of $1.19 billion. During the same period in the prior year, the business posted $4.51 earnings per share. The company’s revenue for the quarter was up 5.8% on a year-over-year basis. As a group, sell-side analysts expect that Snap-On Incorporated will post 19.7 EPS for the current fiscal year.

Snap-On Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Wednesday, June 10th. Shareholders of record on Wednesday, May 20th were given a dividend of $2.44 per share. This represents a $9.76 annualized dividend and a yield of 2.4%. The ex-dividend date of this dividend was Wednesday, May 20th. Snap-On’s payout ratio is presently 50.39%.

Snap-On declared that its board has authorized a share repurchase program on Thursday, April 30th that permits the company to buyback $500.00 million in outstanding shares. This buyback authorization permits the company to buy up to 2.5% of its stock through open market purchases. Stock buyback programs are often a sign that the company’s board believes its shares are undervalued.

Insider Transactions at Snap-On

In related news, CEO Nicholas T. Pinchuk sold 23,396 shares of the company’s stock in a transaction on Tuesday, May 5th. The stock was sold at an average price of $375.77, for a total value of $8,791,514.92. Following the sale, the chief executive officer directly owned 856,918 shares of the company’s stock, valued at $322,004,076.86. This represents a 2.66% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, VP Richard Thomas Miller sold 2,000 shares of the stock in a transaction on Wednesday, July 1st. The stock was sold at an average price of $405.92, for a total value of $811,840.00. Following the completion of the transaction, the vice president owned 4,529 shares of the company’s stock, valued at approximately $1,838,411.68. This trade represents a 30.63% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 37,117 shares of company stock worth $14,003,922 over the last 90 days. 3.80% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of the business. Thurston Springer Miller Herd & Titak Inc. purchased a new stake in Snap-On in the fourth quarter worth about $25,000. DV Equities LLC purchased a new position in shares of Snap-On during the fourth quarter valued at approximately $25,000. Western Wealth Management LLC bought a new stake in shares of Snap-On in the 1st quarter worth approximately $29,000. GoalVest Advisory LLC bought a new stake in shares of Snap-On in the 4th quarter worth approximately $28,000. Finally, Montag A & Associates Inc. grew its stake in shares of Snap-On by 331.8% in the 4th quarter. Montag A & Associates Inc. now owns 95 shares of the company’s stock worth $33,000 after buying an additional 73 shares during the last quarter. 84.88% of the stock is currently owned by institutional investors.

About Snap-On

Snap‑On Incorporated (NYSE: SNA) is a designer, manufacturer and marketer of tools, diagnostic equipment, repair information and shop equipment for professional users. The company’s product range includes hand and power tools, tool storage and cabinets, diagnostic scan tools and software, shop equipment such as lifts and tire changers, and specialized specialty tools for automotive, aviation, marine and industrial applications. Snap‑On also offers information and workflow solutions that combine diagnostic data, repair procedures and parts information to support professional technicians.

Founded in 1920 and headquartered in Kenosha, Wisconsin, Snap‑On has established a long history in the professional tools market.