Snap-on (NYSE:SNA) Rating Lowered to Sell at Zacks Investment Research

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Zacks Investment Research downgraded shares of Snap-on (NYSE:SNA) from a hold rating to a sell rating in a research note published on Tuesday morning, Zacks.com reports. They currently have $166.00 price objective on the stock.

According to Zacks, “Although shares of Snap-on underperformed the industry year to date, its robust earnings surprise trend remain encouraging. In first-quarter 2019, the company reported bottom-line beat, after delivering in-line earnings in the previous quarter. It is benefiting from robust business model and focus on value-creation processes. The company’s RCI program, designed to enhance organizational effectiveness and minimize costs, has been driving margins and profits. The company’s Tools Group segment reported sales growth backed by higher organic sales and robust U.S. franchise business. However, the segment continued witnessing decline in international operations sales, which partly affected its growth. This apart, the company’s soft sales trend continued for the fourth straight time in the first quarter, mainly due to currency headwinds.”

SNA has been the subject of several other research reports. Barrington Research upped their price target on shares of Lions Gate Entertainment to $18.00 and gave the stock an outperform rating in a research report on Wednesday, May 29th. Robert W. Baird upped their price target on shares of Cerner from $67.00 to $71.00 and gave the stock an outperform rating in a research report on Wednesday, April 10th. Northcoast Research reaffirmed a neutral rating on shares of Snap-on in a research report on Friday, May 17th. Longbow Research reaffirmed a hold rating on shares of Snap-on in a research report on Monday, July 1st. Finally, Bank of America lowered shares of Propetro from a buy rating to a neutral rating in a research report on Tuesday, April 16th. One equities research analyst has rated the stock with a sell rating, four have assigned a hold rating and one has assigned a buy rating to the company. The company has an average rating of Hold and an average price target of $169.75.

Shares of SNA stock opened at $151.33 on Tuesday. Snap-on has a one year low of $135.29 and a one year high of $189.46. The company has a quick ratio of 1.66, a current ratio of 2.42 and a debt-to-equity ratio of 0.29. The stock’s 50 day moving average is $161.26. The firm has a market capitalization of $8.55 billion, a price-to-earnings ratio of 12.81, a price-to-earnings-growth ratio of 1.48 and a beta of 1.24.

Snap-on (NYSE:SNA) last issued its quarterly earnings results on Thursday, July 18th. The company reported $3.22 EPS for the quarter, topping the consensus estimate of $3.21 by $0.01. Snap-on had a net margin of 18.64% and a return on equity of 21.66%. The firm had revenue of $951.30 million during the quarter, compared to analyst estimates of $959.33 million. During the same quarter in the prior year, the business posted $3.11 earnings per share. Snap-on’s revenue for the quarter was down .3% compared to the same quarter last year. Sell-side analysts anticipate that Snap-on will post 12.35 earnings per share for the current fiscal year.

In related news, Chairman Nicholas T. Pinchuk sold 19,403 shares of the company’s stock in a transaction that occurred on Wednesday, June 19th. The shares were sold at an average price of $164.60, for a total transaction of $3,193,733.80. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Corporate insiders own 3.90% of the company’s stock.

A number of institutional investors and hedge funds have recently added to or reduced their stakes in SNA. Livforsakringsbolaget Skandia Omsesidigt boosted its stake in shares of Snap-on by 42.1% in the second quarter. Livforsakringsbolaget Skandia Omsesidigt now owns 24,300 shares of the company’s stock valued at $4,025,000 after purchasing an additional 7,200 shares during the period. Fox Run Management L.L.C. acquired a new stake in Snap-on in the second quarter valued at $406,000. Foster & Motley Inc. raised its holdings in Snap-on by 0.9% in the second quarter. Foster & Motley Inc. now owns 15,227 shares of the company’s stock valued at $2,522,000 after acquiring an additional 131 shares in the last quarter. Fjarde AP Fonden Fourth Swedish National Pension Fund raised its holdings in Snap-on by 35.9% in the second quarter. Fjarde AP Fonden Fourth Swedish National Pension Fund now owns 32,159 shares of the company’s stock valued at $5,327,000 after acquiring an additional 8,500 shares in the last quarter. Finally, Fenimore Asset Management Inc. raised its holdings in Snap-on by 3.0% in the second quarter. Fenimore Asset Management Inc. now owns 329,650 shares of the company’s stock valued at $54,603,000 after acquiring an additional 9,655 shares in the last quarter.

Snap-on Company Profile

Snap-on Incorporated manufactures and markets tools, equipment, diagnostics, and repair information and systems solutions for professional users worldwide. It operates through Commercial and Industrial Group, Snap-on Tools Group, and Repair Systems & Information Group segments. The company offers hand tools, including wrenches, sockets, ratchet wrenches, pliers, screwdrivers, punches and chisels, saws and cutting tools, pruning tools, torque measuring instruments, and other products; power tools, such as cordless, pneumatic, hydraulic, and corded tools; and tool storage products comprising tool chests, roll cabinets, and other products.

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