Snap-On (NYSE:SNA) Shares Gap Down on Disappointing Earnings

Snap-On Incorporated (NYSE:SNA)’s share price gapped down before the market opened on Thursday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $368.91, but opened at $329.90. Snap-On shares last traded at $347.0630, with a volume of 106,335 shares trading hands.

The company reported $4.64 earnings per share (EPS) for the quarter, missing the consensus estimate of $4.93 by ($0.29). Snap-On had a net margin of 21.25% and a return on equity of 17.07%. Snap-On’s revenue was down .6% compared to the same quarter last year. During the same period in the prior year, the business earned $4.71 EPS.

Snap-On Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Thursday, September 10th. Stockholders of record on Wednesday, August 19th were issued a dividend of $2.44 per share. This represents a $9.76 annualized dividend and a dividend yield of 2.8%. The ex-dividend date of this dividend was Wednesday, August 19th. Snap-On’s dividend payout ratio (DPR) is presently 49.77%.

Wall Street Analyst Weigh In

SNA has been the subject of several research reports. Robert W. Baird set a $415.00 target price on Snap-On in a research report on Friday, July 24th. Barclays lowered their price target on shares of Snap-On from $450.00 to $435.00 and set an “overweight” rating on the stock in a report on Tuesday, October 6th. Roth Capital restated a “buy” rating and issued a $461.00 price objective (up from $409.00) on shares of Snap-On in a research note on Friday, July 24th. Weiss Ratings reaffirmed a “buy (b)” rating on shares of Snap-On in a report on Thursday, October 15th. Finally, Tigress Financial lifted their target price on shares of Snap-On from $445.00 to $485.00 and gave the company a “buy” rating in a research report on Friday, July 31st. Four investment analysts have rated the stock with a Buy rating and one has issued a Hold rating to the company’s stock. Based on data from MarketBeat.com, Snap-On currently has a consensus rating of “Moderate Buy” and a consensus target price of $449.00.

Insider Buying and Selling

In related news, CEO Nicholas Pinchuk sold 22,889 shares of the firm’s stock in a transaction that occurred on Tuesday, August 18th. The stock was sold at an average price of $399.69, for a total transaction of $9,148,504.41. Following the completion of the transaction, the chief executive officer owned 867,779 shares in the company, valued at $346,842,588.51. This trade represents a 2.57% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, SVP Timothy Chambers sold 9,111 shares of the firm’s stock in a transaction that occurred on Tuesday, July 28th. The stock was sold at an average price of $419.36, for a total value of $3,820,788.96. Following the transaction, the senior vice president owned 21,223 shares of the company’s stock, valued at $8,900,077.28. This trade represents a 30.04% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last quarter, insiders sold 38,331 shares of company stock valued at $15,525,200. 3.80% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Several hedge funds have recently bought and sold shares of SNA. Ritholtz Wealth Management boosted its stake in shares of Snap-On by 2.4% in the 1st quarter. Ritholtz Wealth Management now owns 1,435 shares of the company’s stock valued at $521,000 after purchasing an additional 34 shares in the last quarter. CX Institutional grew its holdings in shares of Snap-On by 10.6% in the 2nd quarter. CX Institutional now owns 447 shares of the company’s stock worth $180,000 after purchasing an additional 43 shares during the last quarter. IFM Investors Pty Ltd increased its position in shares of Snap-On by 0.4% during the 1st quarter. IFM Investors Pty Ltd now owns 11,301 shares of the company’s stock worth $4,105,000 after purchasing an additional 45 shares in the last quarter. Ascentis Independent Advisors increased its position in shares of Snap-On by 2.5% during the 1st quarter. Ascentis Independent Advisors now owns 1,859 shares of the company’s stock worth $675,000 after purchasing an additional 46 shares in the last quarter. Finally, Sovran Advisors LLC lifted its holdings in Snap-On by 6.7% during the 1st quarter. Sovran Advisors LLC now owns 752 shares of the company’s stock valued at $288,000 after purchasing an additional 47 shares during the last quarter. 84.88% of the stock is currently owned by institutional investors and hedge funds.

Snap-On Stock Down 4.6%

The stock has a market capitalization of $18.21 billion, a P/E ratio of 17.81, a P/E/G ratio of 2.43 and a beta of 0.71. The firm’s fifty day moving average is $377.17 and its 200-day moving average is $384.62. The company has a current ratio of 3.43, a quick ratio of 2.64 and a debt-to-equity ratio of 0.15.

About Snap-On

Snap-on Incorporated is a manufacturer and distributor of professional tools, equipment, diagnostics, and related services. Its offerings include hand and power tools, tool storage, vehicle repair equipment, diagnostic systems, and repair information and management software. The company serves professional users who work in automotive repair, heavy-duty transportation, aviation, agriculture, construction, industrial production, government, and other technical fields.

Snap-on markets products under the Snap-on brand and other brands, including Blue-Point, Bahco, and Williams.