Snap-on (SNA) Downgraded to “Sell” at Zacks Investment Research

Zacks Investment Research downgraded shares of Snap-on (NYSE:SNA) from a hold rating to a sell rating in a report issued on Monday morning.

According to Zacks, “Sluggish oil market activities, volatility in the prices and high currency fluctuation risks remain major concerns for Snap-on. The company faces stiff competition across all its market segments. Volatility in price of raw materials and ongoing sluggishness in Tools line of products further add to the company’s woes. Moreover, inability to maintain cordial relationship with franchisees can negatively impact the company’s delivery of products and collection of receivables, thus hurting its performance. Snap-on’s business lines are also suffering on account of difficult macroeconomic conditions. Nevertheless, the stock has outperformed the industry in the past three months. Also, it has an excellent earnings surprise history over the trailing four quarters, beating estimates all through. The company is also committed to its RCI program, which has been instrumental in fueling sales, margins and savings in the recent quarters.”

Several other equities analysts have also recently issued reports on the stock. Barrington Research reiterated a buy rating on shares of Snap-on in a research report on Thursday, March 8th. ValuEngine cut shares of Snap-on from a hold rating to a sell rating in a research report on Wednesday, May 2nd. Robert W. Baird reiterated a buy rating and set a $210.00 price objective on shares of Snap-on in a research report on Friday, April 20th. B. Riley set a $205.00 price objective on shares of Snap-on and gave the stock a buy rating in a research report on Monday, March 12th. Finally, Northcoast Research set a $178.00 price objective on shares of Snap-on and gave the stock a buy rating in a research report on Monday, April 23rd. Two analysts have rated the stock with a sell rating, three have given a hold rating and six have given a buy rating to the stock. The stock has an average rating of Hold and a consensus target price of $189.13.

Shares of NYSE SNA opened at $160.35 on Monday. The company has a quick ratio of 1.57, a current ratio of 2.28 and a debt-to-equity ratio of 0.31. Snap-on has a 52-week low of $140.83 and a 52-week high of $185.47. The company has a market capitalization of $9.10 billion, a price-to-earnings ratio of 15.26, a price-to-earnings-growth ratio of 1.34 and a beta of 1.14.

Snap-on (NYSE:SNA) last announced its quarterly earnings results on Thursday, April 19th. The company reported $2.79 earnings per share (EPS) for the quarter, beating the Thomson Reuters’ consensus estimate of $2.73 by $0.06. Snap-on had a net margin of 15.50% and a return on equity of 20.63%. The firm had revenue of $935.50 million during the quarter, compared to analysts’ expectations of $926.52 million. During the same period in the prior year, the company posted $2.39 EPS. The company’s revenue was up 5.5% on a year-over-year basis. research analysts expect that Snap-on will post 11.63 earnings per share for the current year.

The company also recently disclosed a quarterly dividend, which was paid on Friday, June 8th. Stockholders of record on Monday, May 21st were given a dividend of $0.82 per share. This represents a $3.28 annualized dividend and a dividend yield of 2.05%. The ex-dividend date of this dividend was Friday, May 18th. Snap-on’s dividend payout ratio (DPR) is presently 32.41%.

In related news, VP Irwin M. Shur sold 14,000 shares of the stock in a transaction on Thursday, June 7th. The shares were sold at an average price of $156.34, for a total transaction of $2,188,760.00. Following the transaction, the vice president now directly owns 23,385 shares of the company’s stock, valued at $3,656,010.90. The sale was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, SVP Thomas J. Ward sold 42,000 shares of the stock in a transaction on Tuesday, June 5th. The stock was sold at an average price of $153.36, for a total transaction of $6,441,120.00. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 77,921 shares of company stock valued at $12,090,767. 4.00% of the stock is currently owned by corporate insiders.

Hedge funds and other institutional investors have recently modified their holdings of the stock. MetLife Investment Advisors LLC bought a new position in Snap-on during the fourth quarter worth $3,074,000. D.B. Root & Company LLC bought a new position in Snap-on during the fourth quarter worth $229,000. Brandywine Global Investment Management LLC boosted its stake in Snap-on by 2.8% during the fourth quarter. Brandywine Global Investment Management LLC now owns 52,130 shares of the company’s stock worth $9,087,000 after acquiring an additional 1,440 shares in the last quarter. Sterling Capital Management LLC bought a new position in Snap-on during the fourth quarter worth $21,130,000. Finally, Franklin Resources Inc. bought a new position in Snap-on during the fourth quarter worth $11,980,000. 99.40% of the stock is currently owned by institutional investors and hedge funds.

Snap-on Company Profile

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

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