Zacks Investment Research lowered shares of Snap-On Inc. (NYSE:SNA) from a buy rating to a hold rating in a research note published on Monday.
According to Zacks, “Snap-On has registered an excellent earnings surprise history over the trailing four quarters, beating estimates all through. Over the past few quarters, the company’s solid organic top-line growth and lower operating and corporate expenses have been driving earnings growth. We believe that Snap-On’s robust “Value Creation Processes” are likely to accelerate its growth momentum. Solid prospects across business segments, diversified portfolio and impressive traction of the newly launched products, continue to add to its strength. However, on the flip side, weakness in certain geographic segments continues to pose a threat to the company’s financials. Also, volatile oil markets, along with weak military sales volumes, will likely hinder the company’s growth. This apart, factors like stiff competition, volatility in price of raw materials and high currency fluctuation add to the company’s woes.”
Shares of Snap-On (NYSE:SNA) opened at 169.18 on Monday. The company has a market capitalization of $9.82 billion, a price-to-earnings ratio of 18.88 and a beta of 1.08. The company’s 50 day moving average price is $157.28 and its 200-day moving average price is $156.23. Snap-On has a 1-year low of $133.09 and a 1-year high of $174.52.
Snap-On (NYSE:SNA) last posted its quarterly earnings data on Thursday, October 20th. The company reported $2.22 earnings per share for the quarter, beating the Zacks’ consensus estimate of $2.15 by $0.07. Snap-On had a return on equity of 20.73% and a net margin of 15.67%. The company earned $834.10 million during the quarter, compared to analyst estimates of $709.70 million. During the same quarter last year, the company earned $1.98 EPS. The firm’s revenue for the quarter was up 1.5% on a year-over-year basis. On average, equities analysts forecast that Snap-On will post $9.15 earnings per share for the current year.
The business also recently disclosed a quarterly dividend, which will be paid on Friday, December 9th. Investors of record on Friday, November 18th will be given a dividend of $0.71 per share. This represents a $2.84 dividend on an annualized basis and a yield of 1.68%. The ex-dividend date of this dividend is Wednesday, November 16th. This is a positive change from Snap-On’s previous quarterly dividend of $0.61. Snap-On’s dividend payout ratio (DPR) is 31.70%.
In other Snap-On news, VP Jeanne M. Moreno sold 500 shares of the stock in a transaction on Monday, October 24th. The stock was sold at an average price of $160.30, for a total transaction of $80,150.00. Following the sale, the vice president now directly owns 7,027 shares in the company, valued at approximately $1,126,428.10. The sale was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, VP Constance Johnsen sold 4,833 shares of the stock in a transaction on Thursday, November 10th. The shares were sold at an average price of $163.54, for a total value of $790,388.82. Following the sale, the vice president now owns 2,698 shares in the company, valued at $441,230.92. The disclosure for this sale can be found here. Corporate insiders own 3.40% of the company’s stock.
A number of hedge funds have recently modified their holdings of the stock. JPMorgan Chase & Co. increased its stake in shares of Snap-On by 39.1% in the third quarter. JPMorgan Chase & Co. now owns 4,149,833 shares of the company’s stock valued at $630,609,000 after buying an additional 1,166,037 shares in the last quarter. Bank of Montreal Can acquired a new stake in shares of Snap-On during the second quarter valued at approximately $86,320,000. Bank of New York Mellon Corp increased its stake in shares of Snap-On by 51.7% in the second quarter. Bank of New York Mellon Corp now owns 1,100,392 shares of the company’s stock valued at $173,664,000 after buying an additional 375,027 shares in the last quarter. Nordea Investment Management AB increased its stake in shares of Snap-On by 4,219.1% in the second quarter. Nordea Investment Management AB now owns 370,363 shares of the company’s stock valued at $58,451,000 after buying an additional 361,788 shares in the last quarter. Finally, Adage Capital Partners GP L.L.C. increased its stake in shares of Snap-On by 66.7% in the third quarter. Adage Capital Partners GP L.L.C. now owns 795,662 shares of the company’s stock valued at $120,909,000 after buying an additional 318,427 shares in the last quarter. Institutional investors and hedge funds own 87.42% of the company’s stock.
Snap-On Incorporated is a manufacturer and marketer of tools, equipment, diagnostics, repair information and systems solutions for professional users. The Company’s segments include Commercial & Industrial Group, the Snap-on Tools Group, the Repair Systems & Information Group and Financial Services. Its Commercial & Industrial Group segment consists of business operations serving a range of industrial and commercial customers across the world.