Snap (NYSE:SNAP) Reaches New 1-Year Low – Here’s What Happened

Snap Inc. (NYSE:SNAP) shares reached a new 52-week low during trading on Monday . The stock traded as low as $5.09 and last traded at $5.1750, with a volume of 3480460 shares. The stock had previously closed at $5.22.

Wall Street Analysts Forecast Growth

A number of equities research analysts have issued reports on the company. BMO Capital Markets increased their price target on Snap from $12.00 to $13.00 and gave the company an “outperform” rating in a research report on Thursday, November 6th. Mizuho cut their target price on shares of Snap from $9.00 to $7.00 and set a “neutral” rating on the stock in a research note on Thursday. Citigroup raised their target price on shares of Snap from $8.50 to $10.00 and gave the company a “neutral” rating in a report on Wednesday, November 12th. Morgan Stanley boosted their price target on shares of Snap from $8.50 to $9.50 and gave the stock an “equal weight” rating in a report on Tuesday, January 13th. Finally, The Goldman Sachs Group dropped their price objective on shares of Snap from $9.50 to $8.50 and set a “neutral” rating on the stock in a research report on Tuesday, January 13th. One research analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating, twenty-three have given a Hold rating and three have assigned a Sell rating to the company. Based on data from MarketBeat, the stock has an average rating of “Hold” and an average price target of $8.66.

Snap Price Performance

The stock has a market capitalization of $8.86 billion, a price-to-earnings ratio of -19.17 and a beta of 0.83. The company has a quick ratio of 3.56, a current ratio of 3.56 and a debt-to-equity ratio of 1.53. The stock has a fifty day moving average of $7.58 and a 200-day moving average of $7.80.

Snap (NYSE:SNAP) last issued its quarterly earnings data on Wednesday, February 4th. The company reported $0.03 earnings per share for the quarter, missing the consensus estimate of $0.15 by ($0.12). Snap had a negative return on equity of 20.72% and a negative net margin of 7.76%.The company had revenue of $1.72 billion for the quarter, compared to analysts’ expectations of $1.70 billion. During the same quarter in the prior year, the firm posted $0.01 EPS. The firm’s quarterly revenue was up 10.2% compared to the same quarter last year. On average, equities research analysts predict that Snap Inc. will post -0.3 EPS for the current fiscal year.

Insider Activity at Snap

In other Snap news, insider Ajit Mohan sold 20,848 shares of the company’s stock in a transaction on Friday, January 16th. The shares were sold at an average price of $7.62, for a total value of $158,861.76. Following the completion of the transaction, the insider owned 5,277,816 shares in the company, valued at $40,216,957.92. This represents a 0.39% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, CFO Derek Andersen sold 23,715 shares of Snap stock in a transaction dated Wednesday, January 14th. The stock was sold at an average price of $7.83, for a total value of $185,688.45. Following the sale, the chief financial officer owned 2,972,051 shares in the company, valued at $23,271,159.33. This trade represents a 0.79% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 393,341 shares of company stock valued at $3,169,210 in the last ninety days. 22.68% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Several institutional investors have recently added to or reduced their stakes in the company. Allworth Financial LP boosted its holdings in shares of Snap by 92.3% in the third quarter. Allworth Financial LP now owns 3,293 shares of the company’s stock valued at $25,000 after acquiring an additional 1,581 shares during the period. V Square Quantitative Management LLC purchased a new stake in Snap in the 4th quarter valued at $29,000. EverSource Wealth Advisors LLC boosted its stake in Snap by 561.4% during the 4th quarter. EverSource Wealth Advisors LLC now owns 3,618 shares of the company’s stock worth $29,000 after purchasing an additional 3,071 shares during the period. Mirae Asset Global Investments Co. Ltd. acquired a new stake in Snap during the 3rd quarter worth $33,000. Finally, Banque Cantonale Vaudoise purchased a new position in Snap during the 3rd quarter worth $39,000. Institutional investors and hedge funds own 47.52% of the company’s stock.

Snap Company Profile

Snap Inc is a camera and social media company best known for developing and operating Snapchat, a multimedia messaging application that allows users to send photos, videos and messages that disappear after being viewed. In addition to its core messaging service, Snap offers a suite of augmented reality (AR) tools, including custom Lenses and Filters, that enable users and third-party developers to create interactive and immersive experiences. The company also provides advertising solutions that allow brands to engage audiences through Snap Ads, Sponsored Lenses and Discover content on the platform.

Founded in 2011 by Evan Spiegel and Bobby Murphy, Snap has continually focused on innovation in camera technology and AR.