Snap-On (NYSE:SNA) Shares Gap Up Following Better-Than-Expected Earnings

Shares of Snap-On Incorporated (NYSE:SNA) gapped up before the market opened on Thursday following a better than expected earnings announcement. The stock had previously closed at $313.01, but opened at $329.85. Snap-On shares last traded at $328.83, with a volume of 233,624 shares traded.

The company reported $4.72 earnings per share for the quarter, beating the consensus estimate of $4.61 by $0.11. Snap-On had a return on equity of 18.60% and a net margin of 21.42%. The company had revenue of $1.18 billion for the quarter, compared to analyst estimates of $1.16 billion. During the same period in the previous year, the company posted $5.07 earnings per share. The firm’s revenue was up .0% on a year-over-year basis.

Snap-On Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Tuesday, June 10th. Shareholders of record on Tuesday, May 20th were given a $2.14 dividend. This represents a $8.56 dividend on an annualized basis and a yield of 2.54%. The ex-dividend date was Tuesday, May 20th. Snap-On’s payout ratio is 44.82%.

Analyst Upgrades and Downgrades

Several analysts recently issued reports on SNA shares. Robert W. Baird cut their target price on Snap-On from $349.00 to $320.00 and set a “neutral” rating for the company in a research report on Monday, April 21st. Longbow Research upgraded Snap-On from a “neutral” rating to a “buy” rating and set a $400.00 price target on the stock in a report on Monday, March 31st. Wall Street Zen upgraded Snap-On from a “hold” rating to a “buy” rating in a report on Friday, May 16th. Finally, Barrington Research reaffirmed an “outperform” rating and set a $350.00 target price on shares of Snap-On in a research report on Tuesday. One investment analyst has rated the stock with a sell rating, one has given a hold rating and five have assigned a buy rating to the stock. According to data from MarketBeat, Snap-On presently has a consensus rating of “Moderate Buy” and an average target price of $350.83.

Insider Activity at Snap-On

In other news, CFO Aldo John Pagliari sold 5,553 shares of the firm’s stock in a transaction that occurred on Thursday, May 15th. The shares were sold at an average price of $326.84, for a total transaction of $1,814,942.52. Following the completion of the transaction, the chief financial officer directly owned 109,560 shares of the company’s stock, valued at $35,808,590.40. This trade represents a 4.82% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, Director Karen L. Daniel sold 1,090 shares of Snap-On stock in a transaction that occurred on Thursday, June 5th. The stock was sold at an average price of $319.92, for a total transaction of $348,712.80. Following the completion of the sale, the director directly owned 8,030 shares of the company’s stock, valued at $2,568,957.60. The trade was a 11.95% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 29,815 shares of company stock valued at $9,482,532 over the last quarter. 3.90% of the stock is owned by insiders.

Institutional Investors Weigh In On Snap-On

Institutional investors have recently modified their holdings of the stock. Alpine Bank Wealth Management bought a new position in Snap-On in the 1st quarter worth about $25,000. Golden State Wealth Management LLC boosted its stake in Snap-On by 421.1% in the 1st quarter. Golden State Wealth Management LLC now owns 99 shares of the company’s stock worth $33,000 after purchasing an additional 80 shares during the period. Cullen Frost Bankers Inc. grew its holdings in shares of Snap-On by 248.3% during the 1st quarter. Cullen Frost Bankers Inc. now owns 101 shares of the company’s stock valued at $34,000 after acquiring an additional 72 shares in the last quarter. Ransom Advisory Ltd purchased a new position in shares of Snap-On during the 1st quarter valued at $34,000. Finally, Thurston Springer Miller Herd & Titak Inc. grew its holdings in shares of Snap-On by 52.8% during the 2nd quarter. Thurston Springer Miller Herd & Titak Inc. now owns 110 shares of the company’s stock valued at $34,000 after acquiring an additional 38 shares in the last quarter. Institutional investors and hedge funds own 84.88% of the company’s stock.

Snap-On Stock Performance

The firm’s fifty day moving average price is $318.47 and its 200 day moving average price is $327.84. The company has a current ratio of 4.14, a quick ratio of 3.18 and a debt-to-equity ratio of 0.21. The firm has a market capitalization of $17.65 billion, a PE ratio of 17.68, a PEG ratio of 2.23 and a beta of 0.76.

About Snap-On

Snap-on Incorporated manufactures and markets tools, equipment, diagnostics, and repair information and systems solutions for professional users worldwide. It operates through Commercial & Industrial Group, Snap-on Tools Group, Repair Systems & Information Group, and Financial Services segments.