Snap Inc. (NYSE:SNAP) Receives Average Recommendation of “Hold” from Analysts

Snap Inc. (NYSE:SNAP) has been assigned an average recommendation of “Hold” from the thirty-five ratings firms that are presently covering the stock, MarketBeat Ratings reports. Two analysts have rated the stock with a sell rating, twenty-two have given a hold rating, ten have issued a buy rating and one has assigned a strong buy rating to the company. The average 12 month target price among brokers that have updated their coverage on the stock in the last year is $7.9056.

A number of analysts have weighed in on the company. Rosenblatt Securities reiterated a “neutral” rating and set a $6.40 price target on shares of Snap in a report on Thursday, April 16th. Piper Sandler reaffirmed a “neutral” rating on shares of Snap in a research note on Thursday, February 5th. TD Cowen assumed coverage on Snap in a research note on Monday, April 27th. They issued a “buy” rating on the stock. Barclays upgraded shares of Snap from an “overweight” rating to an “overweight” rating in a research note on Monday, April 27th. Finally, Wells Fargo & Company boosted their target price on shares of Snap from $6.00 to $7.00 and gave the company an “equal weight” rating in a research report on Thursday, May 7th.

Insider Activity

In related news, CFO Douglas Hott sold 124,209 shares of the company’s stock in a transaction that occurred on Monday, May 18th. The stock was sold at an average price of $5.60, for a total transaction of $695,570.40. Following the transaction, the chief financial officer directly owned 2,571,149 shares of the company’s stock, valued at approximately $14,398,434.40. This represents a 4.61% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CFO Derek Andersen sold 92,956 shares of the firm’s stock in a transaction that occurred on Monday, March 16th. The shares were sold at an average price of $4.59, for a total value of $426,668.04. Following the completion of the sale, the chief financial officer directly owned 3,799,661 shares of the company’s stock, valued at $17,440,443.99. This trade represents a 2.39% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last ninety days, insiders have sold 2,665,427 shares of company stock valued at $14,514,853. Corporate insiders own 22.68% of the company’s stock.

Hedge Funds Weigh In On Snap

A number of large investors have recently modified their holdings of the company. Mackenzie Financial Corp raised its holdings in Snap by 5.1% during the third quarter. Mackenzie Financial Corp now owns 27,638 shares of the company’s stock worth $213,000 after buying an additional 1,349 shares during the last quarter. WealthCollab LLC grew its holdings in shares of Snap by 1.2% during the fourth quarter. WealthCollab LLC now owns 115,390 shares of the company’s stock valued at $931,000 after buying an additional 1,369 shares during the last quarter. Alliancebernstein L.P. increased its position in shares of Snap by 0.3% during the third quarter. Alliancebernstein L.P. now owns 414,416 shares of the company’s stock worth $3,195,000 after acquiring an additional 1,396 shares in the last quarter. Orion Porfolio Solutions LLC increased its position in shares of Snap by 8.3% during the second quarter. Orion Porfolio Solutions LLC now owns 18,913 shares of the company’s stock worth $164,000 after acquiring an additional 1,451 shares in the last quarter. Finally, Newbridge Financial Services Group Inc. raised its holdings in shares of Snap by 37.5% in the 4th quarter. Newbridge Financial Services Group Inc. now owns 5,500 shares of the company’s stock worth $44,000 after acquiring an additional 1,500 shares during the last quarter. 47.52% of the stock is currently owned by institutional investors.

Snap Stock Performance

Shares of SNAP stock opened at $5.62 on Friday. The stock has a market capitalization of $9.49 billion, a PE ratio of -23.40 and a beta of 1.05. The business’s 50 day simple moving average is $5.21 and its 200 day simple moving average is $6.44. The company has a debt-to-equity ratio of 1.67, a current ratio of 3.53 and a quick ratio of 3.53. Snap has a one year low of $3.81 and a one year high of $10.41.

Snap (NYSE:SNAP) last released its quarterly earnings results on Wednesday, May 6th. The company reported ($0.05) earnings per share (EPS) for the quarter, missing the consensus estimate of $0.09 by ($0.14). Snap had a negative return on equity of 18.92% and a negative net margin of 6.72%.The firm had revenue of $1.53 billion for the quarter, compared to the consensus estimate of $1.53 billion. During the same quarter in the previous year, the business posted ($0.08) EPS. The firm’s revenue for the quarter was up 12.2% compared to the same quarter last year. As a group, research analysts forecast that Snap will post -0.07 earnings per share for the current year.

Snap News Summary

Here are the key news stories impacting Snap this week:

• Positive Sentiment: Snap appointed Luke Wood, former President of Beats by Dr. Dre and a former Apple executive, to its board of directors. Investors may view the move as a credibility boost for Snap’s leadership and product strategy, especially given Wood’s experience at the intersection of technology and consumer brands. Luke Wood Joins Snap Inc. Board of Directors
• Neutral Sentiment: Several executive and director-level share sales were reported, but each filing said the transactions were made to cover tax withholding obligations tied to vesting equity awards. That makes the sales more routine than a clear signal of reduced confidence, though the volume may still weigh on investor sentiment. SEC filing for CFO Douglas Hott
• Neutral Sentiment: CFO Douglas Hott sold shares at about $5.60-$5.67, General Counsel Zachary M. Briers sold shares in two transactions, and CAO Rebecca Morrow also sold shares. Because these were insider transactions clustered around the same period, traders may interpret them cautiously even though the stated reason was tax-related. SEC filing for Zachary M. Briers
• Negative Sentiment: The size and timing of the insider sales could create near-term pressure on Snap Inc. (NYSE: SNAP) shares, even if they were routine. Investors often see multiple executive sales close together as a cautionary signal, especially ahead of any fresh operating updates. SEC filing for Rebecca Morrow

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.