Snap-On Inc. (NYSE:SNA) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a report released on Tuesday.
According to Zacks, “Snap-On’s growth remains vulnerable to weakness in certain geographic segments, including the Middle East and Asia-Pacific regions. Also, sustained macro concerns like oil and gas volatility and soft industrial markets are impacting client spending, which is adding to the company’s woes, primarily impacting its industrial business. In recent times, the company has suffered high currency fluctuation risks, which have hampered top line growth and might continue to impact the company’s financials in the coming quarters. Factors like stiff competition and raw materials price volatility add to Snap-On’s woes. However, on the positive side, Snap-On has an excellent earnings surprise history over the trailing four quarters, beating estimates all through. For the last reported quarter, bottom-line performance benefitted from higher operating earnings before financial services and operating expenses.”
Other equities research analysts also recently issued research reports about the company. Robert W. Baird restated a “buy” rating on shares of Snap-On in a report on Tuesday, June 28th. CL King started coverage on Snap-On in a report on Monday, June 27th. They set a “buy” rating and a $174.00 price objective for the company. One investment analyst has rated the stock with a sell rating, one has issued a hold rating, three have assigned a buy rating and one has issued a strong buy rating to the company’s stock. The stock presently has a consensus rating of “Buy” and a consensus target price of $176.56.
Shares of Snap-On (NYSE:SNA) opened at 150.89 on Tuesday. The company has a 50-day moving average price of $152.05 and a 200-day moving average price of $156.73. Snap-On has a 1-year low of $133.09 and a 1-year high of $174.52. The company has a market cap of $8.76 billion, a PE ratio of 17.30 and a beta of 1.32.
Snap-On (NYSE:SNA) last issued its earnings results on Thursday, July 21st. The company reported $2.36 earnings per share for the quarter, topping the Zacks’ consensus estimate of $2.23 by $0.13. The business earned $872.30 million during the quarter, compared to the consensus estimate of $876.70 million. Snap-On had a return on equity of 20.78% and a net margin of 15.28%. The firm’s revenue for the quarter was up 2.4% on a year-over-year basis. During the same period in the previous year, the company posted $2.03 earnings per share. Equities research analysts expect that Snap-On will post $9.09 earnings per share for the current fiscal year.
The business also recently announced a quarterly dividend, which was paid on Friday, September 9th. Investors of record on Friday, August 19th were given a dividend of $0.61 per share. The ex-dividend date was Wednesday, August 17th. This represents a $2.44 annualized dividend and a dividend yield of 1.62%. Snap-On’s payout ratio is 27.98%.
In related news, SVP Thomas J. Ward sold 42,000 shares of Snap-On stock in a transaction that occurred on Thursday, September 8th. The stock was sold at an average price of $151.60, for a total transaction of $6,367,200.00. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, VP Iain Boyd sold 3,500 shares of Snap-On stock in a transaction that occurred on Tuesday, July 26th. The shares were sold at an average price of $157.97, for a total value of $552,895.00. The disclosure for this sale can be found here. Corporate insiders own 3.40% of the company’s stock.
Several hedge funds and other institutional investors have recently made changes to their positions in the stock. Hahn Capital Management LLC boosted its position in Snap-On by 201.4% in the first quarter. Hahn Capital Management LLC now owns 184,448 shares of the company’s stock valued at $28,956,000 after buying an additional 123,259 shares in the last quarter. Canandaigua National Bank & Trust Co. boosted its position in Snap-On by 0.7% in the second quarter. Canandaigua National Bank & Trust Co. now owns 77,096 shares of the company’s stock valued at $12,167,000 after buying an additional 500 shares in the last quarter. Renaissance Technologies LLC acquired a new position in Snap-On during the first quarter valued at $28,855,000. Adage Capital Partners GP L.L.C. acquired a new position in Snap-On during the first quarter valued at $29,753,000. Finally, Geode Capital Management LLC boosted its position in Snap-On by 6.1% in the first quarter. Geode Capital Management LLC now owns 490,765 shares of the company’s stock valued at $76,896,000 after buying an additional 28,409 shares in the last quarter. 84.72% of the stock is currently owned by institutional investors.
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.
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