Snap-on (SNA) Lifted to Buy at Zacks Investment Research

Snap-on (NYSE:SNA) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a report released on Wednesday. The brokerage presently has a $206.00 price objective on the stock. Zacks Investment Research‘s price target would suggest a potential upside of 14.60% from the company’s previous close.

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. Diversified portfolio and impressive traction of new products add to its strength. Also, the company has been witnessing encouraging prospects in most of its business lines that will likely unlock new growth avenues going forward. 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.”

Several other brokerages have also issued reports on SNA. B. Riley reaffirmed a “buy” rating and set a $205.00 price target on shares of Snap-on in a research note on Thursday, January 4th. Barrington Research raised Snap-on from a “market perform” rating to an “outperform” rating and set a $185.00 price target for the company in a research note on Monday, October 23rd. Jefferies Group reaffirmed a “hold” rating and set a $175.00 price target on shares of Snap-on in a research note on Friday, November 3rd. Oppenheimer reiterated a “buy” rating and issued a $177.00 price objective on shares of Snap-on in a report on Thursday, October 19th. Finally, FBR & Co reiterated a “buy” rating and issued a $205.00 price objective on shares of Snap-on in a report on Thursday, October 19th. One equities research analyst has rated the stock with a sell rating, two have issued a hold rating and eight have issued a buy rating to the company’s stock. Snap-on has a consensus rating of “Buy” and an average target price of $195.00.

Shares of Snap-on (NYSE:SNA) opened at $179.76 on Wednesday. The company has a debt-to-equity ratio of 0.26, a quick ratio of 1.22 and a current ratio of 1.75. Snap-on has a 52 week low of $140.83 and a 52 week high of $185.47. The stock has a market capitalization of $10,250.00, a PE ratio of 18.47, a price-to-earnings-growth ratio of 1.38 and a beta of 1.14.

Snap-on (NYSE:SNA) last issued its quarterly earnings results on Thursday, October 19th. The company reported $2.45 earnings per share (EPS) for the quarter, topping the Thomson Reuters’ consensus estimate of $2.43 by $0.02. Snap-on had a return on equity of 20.82% and a net margin of 15.95%. The firm had revenue of $903.80 million during the quarter, compared to analyst estimates of $889.22 million. During the same quarter in the previous year, the company posted $2.22 earnings per share. The company’s revenue was up 8.4% compared to the same quarter last year. sell-side analysts forecast that Snap-on will post 10.09 EPS for the current year.

In other news, Chairman Nicholas T. Pinchuk sold 20,680 shares of Snap-on stock in a transaction dated Thursday, December 28th. The stock was sold at an average price of $174.55, for a total value of $3,609,694.00. The transaction was disclosed in a filing with the SEC, which is available at this link. 3.70% of the stock is currently owned by insiders.

Several institutional investors and hedge funds have recently added to or reduced their stakes in the company. Ameritas Investment Partners Inc. increased its holdings in shares of Snap-on by 1.7% in the second quarter. Ameritas Investment Partners Inc. now owns 1,411 shares of the company’s stock worth $222,000 after buying an additional 23 shares during the period. Cubist Systematic Strategies LLC increased its holdings in Snap-on by 11.5% during the 2nd quarter. Cubist Systematic Strategies LLC now owns 1,597 shares of the company’s stock valued at $252,000 after purchasing an additional 165 shares during the period. Norinchukin Bank The increased its holdings in Snap-on by 6.7% during the 2nd quarter. Norinchukin Bank The now owns 4,022 shares of the company’s stock valued at $635,000 after purchasing an additional 254 shares during the period. Suntrust Banks Inc. increased its holdings in Snap-on by 3.0% during the 2nd quarter. Suntrust Banks Inc. now owns 10,753 shares of the company’s stock valued at $1,698,000 after purchasing an additional 315 shares during the period. Finally, Rowland & Co. Investment Counsel ADV increased its holdings in Snap-on by 40.4% during the 2nd quarter. Rowland & Co. Investment Counsel ADV now owns 1,095 shares of the company’s stock valued at $174,000 after purchasing an additional 315 shares during the period. Hedge funds and other institutional investors own 99.40% of the company’s stock.

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About Snap-on

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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