Zacks Investment Research downgraded shares of Snap-On Incorporated (NYSE:SNA) from a hold rating to a sell rating in a research report sent to investors on Wednesday morning.

According to Zacks, “Tough macroeconomic conditions have been plaguing Snap-On in recent times. Sluggish oil and gas market activity and softness in industrial markets continue to negatively impact Snap-on’s revenues. Also, instability in the credit and financial markets and lower business & consumer spending will hurt its prospects. This apart, volatility in price of raw materials and ongoing sluggishness in Tools Storage products add to the company’s woes. In addition, over the past three months, Snap-on’s shares have underperformed the industry's average decline. On the positive side, Snap-On has a robust earnings surprise history over the trailing four quarters, having beaten estimates all through. Also, the company has been witnessing encouraging prospects in most of its business lines that will likely unlock new growth avenues going forward.”

Several other brokerages have also recently weighed in on SNA. BidaskClub cut Snap-On from a sell rating to a strong sell rating in a research note on Tuesday, July 25th. Longbow Research cut Snap-On from a buy rating to a neutral rating in a research note on Monday, August 21st. Jefferies Group LLC reissued a hold rating and issued a $175.00 price target on shares of Snap-On in a research note on Thursday, July 6th. FBR & Co reissued an outperform rating and issued a $205.00 price target on shares of Snap-On in a research note on Tuesday, July 11th. Finally, Oppenheimer Holdings, Inc. restated an outperform rating and set a $200.00 target price on shares of Snap-On in a research report on Thursday, June 1st. Two research analysts have rated the stock with a sell rating, two have issued a hold rating and five have assigned a buy rating to the company. The company has a consensus rating of Hold and a consensus target price of $197.86.

Shares of Snap-On (NYSE SNA) traded up 0.50% during trading on Wednesday, reaching $149.32. The company’s stock had a trading volume of 423,695 shares. The firm has a market cap of $8.60 billion, a PE ratio of 15.46 and a beta of 1.05. Snap-On has a 12 month low of $140.83 and a 12 month high of $181.73. The company’s 50 day moving average price is $148.41 and its 200 day moving average price is $159.16.

Snap-On (NYSE:SNA) last issued its quarterly earnings results on Thursday, July 20th. The company reported $2.60 earnings per share for the quarter, beating the consensus estimate of $2.55 by $0.05. The company had revenue of $921.40 million during the quarter, compared to analysts’ expectations of $920.87 million. Snap-On had a return on equity of 20.90% and a net margin of 16.22%. The business’s quarterly revenue was up 5.6% on a year-over-year basis. During the same quarter in the prior year, the firm posted $2.36 earnings per share. On average, equities analysts predict that Snap-On will post $10.09 earnings per share for the current year.

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Snap-On announced that its Board of Directors has approved a stock repurchase plan on Monday, August 7th that allows the company to buyback $500.00 million in outstanding shares. This buyback authorization allows the company to reacquire shares of its stock through open market purchases. Stock buyback plans are often an indication that the company’s board of directors believes its shares are undervalued.

The firm also recently announced a quarterly dividend, which was paid on Friday, September 8th. Investors of record on Friday, August 18th were given a dividend of $0.71 per share. The ex-dividend date was Wednesday, August 16th. This represents a $2.84 annualized dividend and a dividend yield of 1.90%. Snap-On’s payout ratio is 29.34%.

In other Snap-On news, VP Iain Boyd sold 18,418 shares of the stock in a transaction that occurred on Monday, July 24th. The stock was sold at an average price of $147.54, for a total value of $2,717,391.72. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, Director Ruth Ann M. Gillis purchased 265 shares of the business’s stock in a transaction on Friday, August 4th. The stock was purchased at an average price of $152.58 per share, for a total transaction of $40,433.70. The disclosure for this purchase can be found here. 3.70% of the stock is owned by corporate insiders.

A number of large investors have recently made changes to their positions in SNA. Karp Capital Management Corp bought a new position in Snap-On in the first quarter worth approximately $2,821,000. Commonwealth of Pennsylvania Public School Empls Retrmt SYS boosted its holdings in Snap-On by 29.3% in the first quarter. Commonwealth of Pennsylvania Public School Empls Retrmt SYS now owns 4,300 shares of the company’s stock worth $725,000 after acquiring an additional 974 shares in the last quarter. Mutual of America Capital Management LLC boosted its holdings in Snap-On by 7.3% in the first quarter. Mutual of America Capital Management LLC now owns 7,244 shares of the company’s stock worth $1,222,000 after acquiring an additional 495 shares in the last quarter. Ffcm LLC boosted its holdings in Snap-On by 4.3% in the first quarter. Ffcm LLC now owns 1,330 shares of the company’s stock worth $225,000 after acquiring an additional 55 shares in the last quarter. Finally, Norinchukin Bank The boosted its holdings in Snap-On by 7.0% in the first quarter. Norinchukin Bank The now owns 3,768 shares of the company’s stock worth $636,000 after acquiring an additional 248 shares in the last quarter. Institutional investors and hedge funds own 93.13% of the company’s stock.

About Snap-On

Snap-on Incorporated is a manufacturer and marketer of tools, equipment, diagnostics, repair information and systems solutions. The Company’s segments include the Commercial & Industrial Group, the Snap-on Tools Group, the Repair Systems & Information Group, and Financial Services. The Commercial & Industrial Group consists of business operations serving a range of industrial and commercial customers, including customers in the aerospace, natural resources, government, power generation, transportation and technical education markets.

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Analyst Recommendations for Snap-On (NYSE:SNA)

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