Snap-on Incorporated (NYSE:SNA) Increases Dividend to $2.14 Per Share

Snap-on Incorporated (NYSE:SNA) announced a quarterly dividend on Friday, November 8th,RTT News reports. Shareholders of record on Thursday, November 21st will be paid a dividend of 2.14 per share on Tuesday, December 10th. This represents a $8.56 annualized dividend and a yield of 2.41%. The ex-dividend date of this dividend is Thursday, November 21st. This is a positive change from Snap-on’s previous quarterly dividend of $1.86.

Snap-on has raised its dividend payment by an average of 14.6% per year over the last three years and has raised its dividend annually for the last 15 consecutive years. Snap-on has a dividend payout ratio of 42.5% indicating that its dividend is sufficiently covered by earnings. Equities research analysts expect Snap-on to earn $20.02 per share next year, which means the company should continue to be able to cover its $8.56 annual dividend with an expected future payout ratio of 42.8%.

Snap-on Stock Down 0.7 %

Snap-on stock opened at $354.74 on Wednesday. The company has a fifty day simple moving average of $312.62 and a 200 day simple moving average of $286.42. The company has a current ratio of 4.18, a quick ratio of 3.14 and a debt-to-equity ratio of 0.22. Snap-on has a 1-year low of $252.98 and a 1-year high of $365.35. The company has a market cap of $18.63 billion, a P/E ratio of 18.26, a price-to-earnings-growth ratio of 2.36 and a beta of 0.96.

Snap-on (NYSE:SNA) last posted its earnings results on Thursday, October 17th. The company reported $4.70 earnings per share for the quarter, topping analysts’ consensus estimates of $4.58 by $0.12. Snap-on had a return on equity of 19.44% and a net margin of 22.13%. The company had revenue of $1.15 billion during the quarter, compared to the consensus estimate of $1.16 billion. Research analysts anticipate that Snap-on will post 19.05 earnings per share for the current fiscal year.

Snap-on announced that its board has initiated a share buyback plan on Thursday, August 8th that allows the company to repurchase $500.00 million in shares. This repurchase authorization allows the company to buy up to 3.5% of its shares through open market purchases. Shares repurchase plans are generally a sign that the company’s leadership believes its stock is undervalued.

Analyst Upgrades and Downgrades

A number of equities research analysts have recently weighed in on SNA shares. Robert W. Baird lifted their price target on shares of Snap-on from $290.00 to $347.00 and gave the company a “neutral” rating in a research report on Friday, October 18th. Roth Mkm upped their target price on Snap-on from $324.00 to $365.00 and gave the company a “buy” rating in a research report on Tuesday, October 22nd. Barrington Research raised their price target on Snap-on from $325.00 to $350.00 and gave the stock an “outperform” rating in a research report on Thursday, October 17th. Tigress Financial upped their price objective on shares of Snap-on from $336.00 to $385.00 and gave the stock a “buy” rating in a research report on Friday, October 25th. Finally, Bank of America raised their target price on shares of Snap-on from $255.00 to $280.00 and gave the company an “underperform” rating in a report on Friday, October 18th. One research analyst has rated the stock with a sell rating, one has assigned a hold rating and three have assigned a buy rating to the stock. According to data from MarketBeat.com, the stock has an average rating of “Hold” and a consensus price target of $345.40.

Insiders Place Their Bets

In other news, VP Iain Boyd sold 6,044 shares of the business’s stock in a transaction dated Tuesday, October 15th. The stock was sold at an average price of $298.99, for a total transaction of $1,807,095.56. Following the sale, the vice president now owns 10,493 shares in the company, valued at approximately $3,137,302.07. The trade was a 36.55 % decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, SVP Thomas J. Ward sold 12,737 shares of the stock in a transaction that occurred on Monday, October 28th. The stock was sold at an average price of $333.21, for a total transaction of $4,244,095.77. Following the completion of the transaction, the senior vice president now owns 55,401 shares in the company, valued at approximately $18,460,167.21. This trade represents a 18.69 % decrease in their position. The disclosure for this sale can be found here. Insiders sold a total of 26,190 shares of company stock worth $8,212,284 over the last three months. 4.10% of the stock is currently owned by company insiders.

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 & Industrial Group, Snap-on Tools Group, Repair Systems & Information Group, and Financial Services segments.