Snap-On (NYSE:SNA) Shares Gap Up – Still a Buy?

Snap-On Incorporated (NYSE:SNA)’s stock price gapped up before the market opened on Thursday . The stock had previously closed at $382.38, but opened at $400.88. Snap-On shares last traded at $384.4060, with a volume of 61,926 shares.

Wall Street Analysts Forecast Growth

Several research firms have recently weighed in on SNA. Robert W. Baird boosted their price target on Snap-On from $375.00 to $380.00 and gave the stock a “neutral” rating in a report on Tuesday. Tigress Financial boosted their price target on Snap-On from $405.00 to $445.00 and gave the stock a “buy” rating in a report on Friday, February 27th. Weiss Ratings restated a “buy (b)” rating on shares of Snap-On in a report on Monday. Wall Street Zen cut Snap-On from a “buy” rating to a “hold” rating in a report on Saturday, February 7th. Finally, Roth Mkm restated a “buy” rating and set a $409.00 price target (up from $385.00) on shares of Snap-On in a report on Tuesday, February 10th. Four equities research analysts have rated the stock with a Buy rating, one has given a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat.com, Snap-On presently has a consensus rating of “Moderate Buy” and a consensus target price of $373.80.

Snap-On Price Performance

The company has a fifty day moving average of $374.44 and a 200 day moving average of $358.25. The firm has a market capitalization of $20.11 billion, a P/E ratio of 20.13, a PEG ratio of 2.65 and a beta of 0.77. The company has a debt-to-equity ratio of 0.20, a current ratio of 4.79 and a quick ratio of 3.68.

Snap-On (NYSE:SNA) last announced its earnings results on Thursday, April 23rd. The company reported $4.69 EPS for the quarter, missing the consensus estimate of $4.77 by ($0.08). Snap-On had a net margin of 21.44% and a return on equity of 17.34%. The company had revenue of $1.21 billion during the quarter, compared to the consensus estimate of $1.19 billion. During the same quarter in the previous year, the company earned $4.51 earnings per share. The business’s revenue was up 5.8% on a year-over-year basis. Sell-side analysts predict that Snap-On Incorporated will post 19.86 earnings per share for the current year.

Snap-On Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Tuesday, March 10th. Investors of record on Tuesday, February 24th were issued a $2.44 dividend. The ex-dividend date was Tuesday, February 24th. This represents a $9.76 annualized dividend and a yield of 2.5%. Snap-On’s dividend payout ratio is presently 50.86%.

Insider Buying and Selling

In related news, VP June C. Lemerand sold 1,378 shares of the company’s stock in a transaction that occurred on Wednesday, February 25th. The stock was sold at an average price of $387.57, for a total value of $534,071.46. Following the sale, the vice president directly owned 2,913 shares in the company, valued at $1,128,991.41. This represents a 32.11% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, CFO Aldo John Pagliari sold 7,043 shares of the company’s stock in a transaction that occurred on Thursday, February 19th. The shares were sold at an average price of $382.05, for a total value of $2,690,778.15. Following the completion of the sale, the chief financial officer owned 117,183 shares in the company, valued at $44,769,765.15. The trade was a 5.67% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last three months, insiders have sold 39,650 shares of company stock valued at $15,210,959. Insiders own 3.80% of the company’s stock.

Hedge Funds Weigh In On Snap-On

Institutional investors have recently added to or reduced their stakes in the business. DNB Asset Management AS lifted its stake in Snap-On by 65.5% in the third quarter. DNB Asset Management AS now owns 23,702 shares of the company’s stock valued at $8,213,000 after buying an additional 9,377 shares during the period. Generali Asset Management SPA SGR acquired a new position in Snap-On in the third quarter valued at approximately $2,068,000. Bahl & Gaynor Inc. lifted its stake in Snap-On by 1.3% in the third quarter. Bahl & Gaynor Inc. now owns 381,283 shares of the company’s stock valued at $132,126,000 after buying an additional 4,932 shares during the period. Nordea Investment Management AB lifted its stake in Snap-On by 4.1% in the fourth quarter. Nordea Investment Management AB now owns 1,310,198 shares of the company’s stock valued at $454,206,000 after buying an additional 51,486 shares during the period. Finally, Pensionfund Sabic acquired a new position in Snap-On in the fourth quarter valued at approximately $1,206,000. 84.88% of the stock is owned by institutional investors and hedge funds.

Snap-On Company Profile

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.