Snap-On Incorporated (SNA) Rating Increased to Hold at Zacks Investment Research
Zacks Investment Research upgraded shares of Snap-On Incorporated (NYSE:SNA) from a sell rating to a hold rating in a research note released on Monday.
According to Zacks, “Snap-On has registered an excellent earnings surprise history over the trailing four quarters, beating estimates all through. The company is committed to its RCI program, which has been instrumental in fuelling sales, margins and savings in the recent quarters. Also, it has devised a comprehensive blueprint to drive long-run growth, by enhancing franchise network, expanding footprint in vehicle repair garage & vital industries, and penetrating emerging markets. Diversified portfolio and impressive traction of new products add to its strength. Despite these positives, year to date, Snap-on’s shares have underperformed the industry average. Sluggish oil market activities, volatility in the prices and high currency fluctuation risks pose as major concerns. This apart, stiff competition, volatility in price of raw materials and ongoing sluggishness in Tools Storage products add to the company’s woes.”
Several other research analysts have also recently weighed in on SNA. Robert W. Baird restated an outperform rating and issued a $197.00 price objective on shares of Snap-On in a research report on Wednesday, August 2nd. BidaskClub upgraded shares of Snap-On from a strong sell rating to a sell rating in a research report on Monday, July 31st. FBR & Co restated an outperform rating and issued a $205.00 price objective on shares of Snap-On in a research report on Tuesday, July 11th. Jefferies Group LLC restated a hold rating and issued a $175.00 price objective on shares of Snap-On in a research report on Thursday, July 6th. Finally, Longbow Research cut shares of Snap-On from a buy rating to a neutral rating in a research report on Monday, August 21st. One analyst has rated the stock with a sell rating, three have assigned a hold rating and five have issued a buy rating to the company’s stock. The stock presently has an average rating of Hold and an average price target of $197.00.
Shares of Snap-On (NYSE SNA) opened at 151.61 on Monday. The company has a market capitalization of $8.73 billion, a price-to-earnings ratio of 15.69 and a beta of 1.05. The company’s 50 day moving average is $147.94 and its 200 day moving average is $156.89. Snap-On has a one year low of $140.83 and a one year high of $181.73.
Snap-On (NYSE:SNA) last posted its quarterly earnings data on Thursday, July 20th. The company reported $2.60 earnings per share for the quarter, topping the Thomson Reuters’ consensus estimate of $2.55 by $0.05. The company had revenue of $921.40 million for the quarter, compared to analysts’ expectations of $920.87 million. Snap-On had a net margin of 16.22% and a return on equity of 20.90%. Snap-On’s revenue for the quarter was up 5.6% compared to the same quarter last year. During the same period in the prior year, the business earned $2.36 earnings per share. Equities research analysts predict that Snap-On will post $10.09 earnings per share for the current year.
Snap-On declared that its Board of Directors has approved a share 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 purchase shares of its stock through open market purchases. Stock buyback plans are typically a sign that the company’s board of directors believes its shares are undervalued.
In other Snap-On news, Director Ruth Ann M. Gillis purchased 265 shares of Snap-On stock in a transaction on Friday, August 4th. The shares were acquired at an average cost of $152.58 per share, for a total transaction of $40,433.70. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Also, VP Iain Boyd sold 18,418 shares of the stock in a transaction that occurred on Monday, July 24th. The shares were sold at an average price of $147.54, for a total transaction of $2,717,391.72. The disclosure for this sale can be found here. 3.70% of the stock is owned by company insiders.
A number of hedge funds and other institutional investors have recently modified their holdings of the business. Eqis Capital Management Inc. grew its position in Snap-On by 8.8% during the third quarter. Eqis Capital Management Inc. now owns 11,083 shares of the company’s stock valued at $1,651,000 after acquiring an additional 900 shares during the last quarter. Park National Corp OH grew its position in Snap-On by 93.3% during the third quarter. Park National Corp OH now owns 6,496 shares of the company’s stock valued at $968,000 after acquiring an additional 3,135 shares during the last quarter. Toronto Dominion Bank grew its position in Snap-On by 25.3% during the second quarter. Toronto Dominion Bank now owns 19,631 shares of the company’s stock valued at $3,100,000 after acquiring an additional 3,968 shares during the last quarter. Cetera Investment Advisers bought a new position in Snap-On during the second quarter valued at approximately $461,000. Finally, Colony Group LLC bought a new position in Snap-On during the second quarter valued at approximately $1,387,000. Institutional investors and hedge funds own 93.14% 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. 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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