Snap-On (NYSE:SNA) Sets New 1-Year High – Still a Buy?

Snap-On Incorporated (NYSE:SNA)’s share price hit a new 52-week high during mid-day trading on Wednesday . The company traded as high as $421.16 and last traded at $420.11, with a volume of 30260 shares. The stock had previously closed at $418.34.

Analyst Ratings Changes

A number of equities research analysts have weighed in on the company. Robert W. Baird set a $415.00 price objective on Snap-On in a report on Friday, July 24th. Weiss Ratings reissued a “buy (b)” rating on shares of Snap-On in a report on Friday, July 17th. Barclays assumed coverage on Snap-On in a report on Thursday, May 28th. They set an “overweight” rating and a $420.00 price objective on the stock. Roth Capital reiterated a “buy” rating and issued a $461.00 price objective (up from $409.00) on shares of Snap-On in a research report on Friday, July 24th. Finally, Tigress Financial raised their target price on Snap-On from $445.00 to $485.00 and gave the company a “buy” rating in a report on Friday. Five investment analysts have rated the stock with a Buy rating and one has given a Hold rating to the company. According to data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and a consensus target price of $426.20.

Snap-On Stock Performance

The stock’s 50-day moving average price is $396.28 and its 200-day moving average price is $381.22. The company has a market capitalization of $21.66 billion, a price-to-earnings ratio of 21.35, a P/E/G ratio of 2.88 and a beta of 0.73. The company has a debt-to-equity ratio of 0.15, a quick ratio of 2.64 and a current ratio of 3.43.

Snap-On (NYSE:SNA) last released its quarterly earnings results on Thursday, July 23rd. The company reported $4.96 earnings per share for the quarter, topping analysts’ consensus estimates of $4.95 by $0.01. Snap-On had a return on equity of 17.07% and a net margin of 21.25%.The business had revenue of $1.24 billion for the quarter, compared to analysts’ expectations of $1.22 billion. During the same quarter in the prior year, the firm posted $4.72 EPS. The company’s revenue was up 4.7% compared to the same quarter last year. As a group, equities research analysts expect that Snap-On Incorporated will post 19.7 earnings per share for the current year.

Snap-On announced that its board has approved a share buyback program on Thursday, April 30th that permits the company to buyback $500.00 million in outstanding shares. This buyback authorization permits the company to purchase up to 2.5% of its stock through open market purchases. Stock buyback programs are usually an indication that the company’s board believes its shares are undervalued.

Insider Transactions at Snap-On

In related news, SVP Timothy L. Chambers sold 9,111 shares of the business’s stock in a transaction dated Tuesday, July 28th. The shares were sold at an average price of $419.36, for a total value of $3,820,788.96. Following the sale, the senior vice president directly owned 21,223 shares in the company, valued at $8,900,077.28. The trade was a 30.04% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, VP Richard Thomas Miller sold 2,000 shares of the stock in a transaction dated Wednesday, July 1st. The shares were sold at an average price of $405.92, for a total transaction of $811,840.00. Following the completion of the sale, the vice president directly owned 4,529 shares in the company, valued at approximately $1,838,411.68. The trade was a 30.63% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 23,221 shares of company stock worth $9,196,355 over the last ninety days. 3.80% of the stock is currently owned by company insiders.

Institutional Trading of Snap-On

Institutional investors and hedge funds have recently modified their holdings of the business. Thurston Springer Miller Herd & Titak Inc. acquired a new stake in shares of Snap-On in the fourth quarter valued at approximately $25,000. DV Equities LLC purchased a new stake in Snap-On in the 4th quarter valued at approximately $25,000. Western Wealth Management LLC purchased a new stake in Snap-On in the 1st quarter valued at approximately $29,000. Montag A & Associates Inc. grew its holdings in Snap-On by 331.8% during the 4th quarter. Montag A & Associates Inc. now owns 95 shares of the company’s stock valued at $33,000 after buying an additional 73 shares during the last quarter. Finally, Quattro Advisors LLC acquired a new stake in Snap-On during the 4th quarter valued at $35,000. Hedge funds and other institutional investors own 84.88% of the company’s stock.

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.