Snap-On (NYSE:SNA) Sets New 52-Week High – Still a Buy?

Snap-On Incorporated (NYSE:SNA)’s stock price hit a new 52-week high during trading on Wednesday . The stock traded as high as $404.46 and last traded at $402.4080, with a volume of 279913 shares trading hands. The stock had previously closed at $398.36.

Analysts Set New Price Targets

A number of equities analysts have weighed in on SNA shares. Weiss Ratings restated a “buy (b)” rating on shares of Snap-On in a report on Monday, April 20th. Barclays started coverage on shares of Snap-On in a research note on Thursday, May 28th. They set an “overweight” rating and a $420.00 price objective on the stock. Robert W. Baird boosted 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. Finally, Roth Mkm restated a “buy” rating and issued a $431.00 target price on shares of Snap-On in a research note on Friday, April 24th. Five research analysts have rated the stock with a Buy rating, one has given a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, the company has a consensus rating of “Moderate Buy” and a consensus price target of $387.67.

Snap-On Price Performance

The business has a fifty day moving average of $379.19 and a 200 day moving average of $371.45. The company has a debt-to-equity ratio of 0.15, a current ratio of 3.53 and a quick ratio of 2.74. The stock has a market cap of $20.84 billion, a PE ratio of 20.77, a P/E/G ratio of 2.80 and a beta of 0.73.

Snap-On (NYSE:SNA) last posted its quarterly earnings data on Thursday, April 23rd. The company reported $4.69 earnings per share (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 business had revenue of $1.21 billion for the quarter, compared to analysts’ expectations of $1.19 billion. During the same quarter in the prior year, the firm earned $4.51 earnings per share. Snap-On’s revenue for the quarter was up 5.8% compared to the same quarter last year. Sell-side analysts anticipate that Snap-On Incorporated will post 19.7 earnings per share for the current year.

Snap-On Dividend Announcement

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

Snap-On announced that its Board of Directors has initiated a share repurchase program on Thursday, April 30th that authorizes the company to repurchase $500.00 million in shares. This repurchase authorization authorizes the company to buy up to 2.5% of its stock through open market purchases. Stock repurchase programs are typically an indication that the company’s management believes its shares are undervalued.

Insider Activity at Snap-On

In other Snap-On news, VP Richard Thomas Miller sold 427 shares of the firm’s stock in a transaction on Wednesday, June 10th. The shares were sold at an average price of $389.55, for a total transaction of $166,337.85. Following the completion of the transaction, the vice president directly owned 4,527 shares of the company’s stock, valued at $1,763,492.85. This trade represents a 8.62% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Aldo John Pagliari sold 1,330 shares of the business’s stock in a transaction dated Thursday, June 4th. The stock was sold at an average price of $379.27, for a total transaction of $504,429.10. Following the completion of the sale, the chief financial officer directly owned 118,158 shares of the company’s stock, valued at $44,813,784.66. The trade was a 1.11% decrease in their position. The SEC filing for this sale provides additional information. Over the last three months, insiders sold 35,117 shares of company stock valued at $13,192,082. Insiders own 3.80% of the company’s stock.

Hedge Funds Weigh In On Snap-On

A number of hedge funds have recently bought and sold shares of the company. DV Trading LLC bought a new stake in shares of Snap-On in the 1st quarter valued at approximately $247,000. Parallel Advisors LLC lifted its stake in Snap-On by 13.6% during the first quarter. Parallel Advisors LLC now owns 753 shares of the company’s stock worth $274,000 after purchasing an additional 90 shares during the last quarter. Cozad Asset Management Inc. boosted its holdings in Snap-On by 3.6% in the first quarter. Cozad Asset Management Inc. now owns 7,675 shares of the company’s stock worth $2,788,000 after purchasing an additional 264 shares during the period. Axiom Investment Management LLC acquired a new position in Snap-On in the first quarter worth $118,000. Finally, Western Wealth Management LLC bought a new stake in Snap-On during the first quarter valued at $29,000. 84.88% of the stock is currently owned by institutional investors and hedge funds.

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.