Snap-on (NYSE:SNA) Shares Gap Down Following Weak Earnings

Shares of Snap-on Incorporated (NYSE:SNA - Get Free Report) gapped down prior to trading on Thursday following a weaker than expected earnings announcement. The stock had previously closed at $332.00, but opened at $315.64. Snap-on shares last traded at $309.66, with a volume of 98,849 shares changing hands.

The company reported $4.51 earnings per share for the quarter, missing the consensus estimate of $4.81 by ($0.30). The company had revenue of $1.14 billion during the quarter, compared to the consensus estimate of $1.20 billion. Snap-on had a net margin of 21.71% and a return on equity of 19.20%. During the same quarter in the prior year, the firm earned $4.91 EPS.

Snap-on Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Monday, March 10th. Investors of record on Monday, February 24th were paid a dividend of $2.14 per share. This represents a $8.56 dividend on an annualized basis and a yield of 2.81%. The ex-dividend date of this dividend was Monday, February 24th. Snap-on's dividend payout ratio (DPR) is currently 43.90%.

Analyst Upgrades and Downgrades

A number of equities analysts have recently weighed in on the company. StockNews.com lowered Snap-on from a "buy" rating to a "hold" rating in a research report on Friday. Robert W. Baird reduced their price objective on shares of Snap-on from $358.00 to $349.00 and set a "neutral" rating for the company in a report on Tuesday. Longbow Research raised shares of Snap-on from a "neutral" rating to a "buy" rating and set a $400.00 price target on the stock in a research report on Monday, March 31st. Tigress Financial increased their price objective on Snap-on from $385.00 to $390.00 and gave the stock a "buy" rating in a research note on Tuesday, March 4th. Finally, Barrington Research reiterated an "outperform" rating and set a $350.00 price target on shares of Snap-on in a report on Thursday. One research analyst has rated the stock with a sell rating, two have issued a hold rating and four have given a buy rating to the stock. According to data from MarketBeat.com, Snap-on presently has an average rating of "Hold" and a consensus target price of $355.67.

Insiders Place Their Bets

In other news, SVP Jesus Arregui sold 6,451 shares of Snap-on stock in a transaction on Monday, February 10th. The stock was sold at an average price of $337.81, for a total transaction of $2,179,212.31. Following the sale, the senior vice president now directly owns 257 shares in the company, valued at $86,817.17. The trade was a 96.17 % decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, CEO Nicholas T. Pinchuk sold 22,700 shares of the stock in a transaction dated Thursday, March 27th. The shares were sold at an average price of $335.32, for a total transaction of $7,611,764.00. Following the transaction, the chief executive officer now owns 793,932 shares of the company's stock, valued at approximately $266,221,278.24. The trade was a 2.78 % decrease in their position. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 36,011 shares of company stock valued at $12,116,859. Insiders own 3.90% of the company's stock.

Institutional Trading of Snap-on

Several hedge funds have recently made changes to their positions in the company. GAMMA Investing LLC grew its position in shares of Snap-on by 65,113.6% in the first quarter. GAMMA Investing LLC now owns 703,003 shares of the company's stock valued at $236,919,000 after purchasing an additional 701,925 shares in the last quarter. Raymond James Financial Inc. bought a new stake in shares of Snap-on during the fourth quarter valued at about $148,839,000. Norges Bank purchased a new stake in shares of Snap-on in the fourth quarter worth about $145,342,000. First Trust Advisors LP grew its stake in Snap-on by 29.2% during the fourth quarter. First Trust Advisors LP now owns 1,819,403 shares of the company's stock valued at $617,651,000 after acquiring an additional 411,317 shares in the last quarter. Finally, Proficio Capital Partners LLC bought a new stake in Snap-on during the 4th quarter worth approximately $57,738,000. 84.88% of the stock is currently owned by institutional investors.

Snap-on Stock Performance

The stock has a market capitalization of $16.00 billion, a P/E ratio of 15.65, a P/E/G ratio of 2.21 and a beta of 0.84. The company's fifty day simple moving average is $331.66 and its 200 day simple moving average is $338.00. The company has a current ratio of 4.15, a quick ratio of 3.17 and a debt-to-equity ratio of 0.22.

About Snap-on

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