Snap-On (NYSE:SNA) Shares Gap Up – Still a Buy?

Shares of Snap-On Incorporated (NYSE:SNA) gapped up prior to trading on Thursday . The stock had previously closed at $382.38, but opened at $400.88. Snap-On shares last traded at $384.4060, with a volume of 61,926 shares trading hands.

Analysts Set New Price Targets

SNA has been the subject of a number of analyst reports. Roth Mkm reaffirmed a “buy” rating and issued a $409.00 price target (up from $385.00) on shares of Snap-On in a research note on Tuesday, February 10th. Wall Street Zen downgraded Snap-On from a “buy” rating to a “hold” rating in a research note on Saturday, February 7th. Weiss Ratings reaffirmed a “buy (b)” rating on shares of Snap-On in a research note on Monday. Robert W. Baird boosted their price target on Snap-On from $375.00 to $380.00 and gave the company a “neutral” rating in a research note on Tuesday. Finally, Tigress Financial boosted their price target on Snap-On from $405.00 to $445.00 and gave the company a “buy” rating in a research note on Friday, February 27th. Four research analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat, Snap-On has an average rating of “Moderate Buy” and an average price target of $373.80.

Snap-On Stock Performance

The company has a quick ratio of 3.68, a current ratio of 4.79 and a debt-to-equity ratio of 0.20. The stock has a 50 day moving average of $374.44 and a 200 day moving average of $358.25. The firm has a market cap of $20.11 billion, a price-to-earnings ratio of 20.13, a P/E/G ratio of 2.65 and a beta of 0.77.

Snap-On (NYSE:SNA) last released its earnings results on Thursday, April 23rd. The company reported $4.69 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $4.77 by ($0.08). Snap-On had a net margin of 21.44% and a return on equity of 17.34%. The business had revenue of $1.21 billion during the quarter, compared to the consensus estimate of $1.19 billion. During the same quarter in the prior year, the firm earned $4.51 EPS. The business’s revenue was up 5.8% on a year-over-year basis. As a group, analysts anticipate that Snap-On Incorporated will post 19.86 EPS for the current fiscal year.

Snap-On Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Tuesday, March 10th. Shareholders of record on Tuesday, February 24th were given a $2.44 dividend. This represents a $9.76 dividend on an annualized basis and a yield of 2.5%. The ex-dividend date was Tuesday, February 24th. Snap-On’s payout ratio is currently 50.86%.

Insiders Place Their Bets

In other Snap-On news, VP June C. Lemerand sold 1,378 shares of Snap-On stock in a transaction dated Wednesday, February 25th. The stock was sold at an average price of $387.57, for a total value of $534,071.46. Following the transaction, the vice president owned 2,913 shares in the company, valued at $1,128,991.41. The trade was a 32.11% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, CEO Nicholas T. Pinchuk sold 23,229 shares of Snap-On stock in a transaction dated Monday, February 23rd. The shares were sold at an average price of $383.36, for a total value of $8,905,069.44. Following the completion of the transaction, the chief executive officer owned 846,562 shares in the company, valued at approximately $324,538,008.32. This represents a 2.67% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last three months, insiders have sold 39,650 shares of company stock worth $15,210,959. Insiders own 3.80% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently bought and sold shares of the business. Thurston Springer Miller Herd & Titak Inc. bought a new position in Snap-On in the fourth quarter valued at about $25,000. DV Equities LLC bought a new stake in shares of Snap-On during the fourth quarter worth about $25,000. GoalVest Advisory LLC bought a new stake in shares of Snap-On during the fourth quarter worth about $28,000. Montag A & Associates Inc. grew its holdings in shares of Snap-On by 331.8% during the fourth quarter. Montag A & Associates Inc. now owns 95 shares of the company’s stock worth $33,000 after purchasing an additional 73 shares during the last quarter. Finally, SJS Investment Consulting Inc. grew its holdings in shares of Snap-On by 1,880.0% during the third quarter. SJS Investment Consulting Inc. now owns 99 shares of the company’s stock worth $34,000 after purchasing an additional 94 shares during the last quarter. Institutional investors own 84.88% of the company’s stock.

Snap-On Company Profile

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.