Snap-on (NYSE:SNA) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research note issued on Friday.
According to Zacks, “Snap-On has registered an excellent earnings surprise history over the trailing four quarters, beating estimates all through. The company is committed to its RCI program, which has been instrumental in fuelling sales, margins and savings in the recent quarters. Going forward, the company plans to boost growth by focusing on franchise network, expanding footprint in vehicle repair garage & vital industries, and penetrating emerging markets. Also, strategic acquisitions are expected to boost inorganic growth. Despite these positives, over the past year, Snap-on’s shares have underperformed the industry average. Sluggish oil market activities, volatility in the prices and high currency fluctuation risks pose as major concerns. This apart, stiff competition, volatility in price of raw materials and ongoing sluggishness in Tools line of products add to the company’s woes.”
A number of other brokerages have also issued reports on SNA. FBR & Co reissued a “buy” rating and issued a $205.00 price objective on shares of Snap-on in a report on Thursday, October 19th. B. Riley reissued a “buy” rating and issued a $205.00 price objective on shares of Snap-on in a report on Thursday, January 4th. Jefferies Group reissued a “hold” rating and issued a $175.00 price objective on shares of Snap-on in a report on Friday, November 3rd. Oppenheimer reissued a “buy” rating and issued a $177.00 price objective on shares of Snap-on in a report on Thursday, October 19th. Finally, Barrington Research raised Snap-on from a “market perform” rating to an “outperform” rating and set a $185.00 price objective for the company in a report on Monday, October 23rd. One investment analyst has rated the stock with a sell rating, three have given a hold rating and seven have issued a buy rating to the company. The company has a consensus rating of “Buy” and a consensus target price of $193.56.
Snap-on (NYSE:SNA) last issued its quarterly earnings data on Thursday, October 19th. The company reported $2.45 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $2.43 by $0.02. Snap-on had a return on equity of 20.82% and a net margin of 15.95%. The business had revenue of $903.80 million during the quarter, compared to analyst estimates of $889.22 million. During the same period in the prior year, the company posted $2.22 EPS. The business’s revenue for the quarter was up 8.4% compared to the same quarter last year. analysts anticipate that Snap-on will post 10.09 earnings per share for the current fiscal year.
In other Snap-on news, Chairman Nicholas T. Pinchuk sold 20,680 shares of the stock in a transaction on Thursday, December 28th. The stock was sold at an average price of $174.55, for a total transaction of $3,609,694.00. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Company insiders own 3.70% of the company’s stock.
A number of hedge funds and other institutional investors have recently modified their holdings of SNA. Pacer Advisors Inc. boosted its stake in Snap-on by 7.3% during the 2nd quarter. Pacer Advisors Inc. now owns 1,272 shares of the company’s stock valued at $201,000 after purchasing an additional 87 shares in the last quarter. Commonwealth Bank of Australia boosted its stake in Snap-on by 4.4% during the 2nd quarter. Commonwealth Bank of Australia now owns 1,085 shares of the company’s stock valued at $171,000 after purchasing an additional 46 shares in the last quarter. CIBC World Markets Inc. bought a new position in Snap-on during the 2nd quarter valued at $218,000. Eaton Vance Management boosted its stake in Snap-on by 0.3% during the 2nd quarter. Eaton Vance Management now owns 29,472 shares of the company’s stock valued at $4,657,000 after purchasing an additional 100 shares in the last quarter. Finally, Riverhead Capital Management LLC boosted its stake in Snap-on by 2.3% during the 2nd quarter. Riverhead Capital Management LLC now owns 6,950 shares of the company’s stock valued at $1,098,000 after purchasing an additional 154 shares in the last quarter. 99.40% of the stock is owned by hedge funds and other institutional investors.
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Snap-on Company Profile
Snap-on Incorporated is a manufacturer and marketer of tools, equipment, diagnostics, repair information and systems solutions. The Company’s segments include the Commercial & Industrial Group, the Snap-on Tools Group, the Repair Systems & Information Group, and Financial Services. The Commercial & Industrial Group consists of business operations serving a range of industrial and commercial customers, including customers in the aerospace, natural resources, government, power generation, transportation and technical education markets.
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