Snap (NYSE:SNAP) Stock Gets Price Target Cut from Barclays

Snap (NYSE:SNAP) had its price objective reduced by equities research analysts at Barclays from $16.00 to $8.00 in a research note issued to investors on Thursday, Benzinga reports. The firm presently has an “overweight” rating on the stock. Barclays‘s target price would suggest a potential upside of 57.85% from the stock’s previous close.

Several other analysts have also recently commented on the stock. Susquehanna reissued a “neutral” rating on shares of Snap in a research note on Tuesday, August 4th. Wall Street Zen downgraded Snap from a “buy” rating to a “hold” rating in a research report on Saturday, September 12th. Benchmark reiterated a “hold” rating on shares of Snap in a report on Tuesday, August 4th. Guggenheim reiterated a “neutral” rating on shares of Snap in a research report on Wednesday, September 2nd. Finally, Sanford C. Bernstein restated a “market perform” rating and set a $5.00 target price on shares of Snap in a research report on Tuesday, July 21st. One analyst has rated the stock with a Strong Buy rating, twelve have assigned a Buy rating, twenty-two have given a Hold rating and two have assigned a Sell rating to the stock. Based on data from MarketBeat, Snap has an average rating of “Hold” and an average target price of $7.40.

Snap Trading Down 14.4%

SNAP traded down $0.85 during trading on Thursday, reaching $5.07. The company had a trading volume of 50,703,874 shares, compared to its average volume of 45,458,965. The firm’s 50-day simple moving average is $5.76 and its 200 day simple moving average is $5.42. The company has a market cap of $8.57 billion, a price-to-earnings ratio of -27.97 and a beta of 1.23. The company has a debt-to-equity ratio of 1.75, a quick ratio of 2.94 and a current ratio of 2.94. Snap has a 12-month low of $3.81 and a 12-month high of $9.13.

Snap (NYSE:SNAP) last posted its earnings results on Thursday, November 5th. The company reported $0.03 earnings per share (EPS) for the quarter. The firm had revenue of $1.72 billion during the quarter, compared to analysts’ expectations of $1.73 billion. Snap had a negative net margin of 4.90% and a negative return on equity of 14.61%. The company’s revenue was up 14.3% compared to the same quarter last year. During the same period in the previous year, the company earned ($0.06) earnings per share. Equities research analysts anticipate that Snap will post -0.03 earnings per share for the current year.

Insider Transactions at Snap

In related news, insider Ajit Mohan sold 6,797 shares of the business’s stock in a transaction on Wednesday, September 16th. The shares were sold at an average price of $5.82, for a total transaction of $39,558.54. Following the transaction, the insider directly owned 4,965,300 shares in the company, valued at approximately $28,898,046. The trade was a 0.14% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, General Counsel Zachary M. Briers sold 11,257 shares of the firm’s stock in a transaction that occurred on Thursday, September 3rd. The shares were sold at an average price of $6.00, for a total value of $67,542.00. Following the completion of the sale, the general counsel directly owned 2,345,534 shares of the company’s stock, valued at approximately $14,073,204. The trade was a 0.48% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 445,926 shares of company stock worth $2,326,930 in the last 90 days. 22.68% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Several hedge funds have recently made changes to their positions in the business. Assenagon Asset Management S.A. increased its stake in Snap by 278.5% in the third quarter. Assenagon Asset Management S.A. now owns 14,771,533 shares of the company’s stock valued at $79,766,000 after acquiring an additional 10,868,392 shares during the last quarter. Empyrean Capital Partners LP acquired a new stake in shares of Snap in the 1st quarter valued at $25,300,000. Saba Capital Management L.P. increased its stake in shares of Snap by 232.5% in the 1st quarter. Saba Capital Management L.P. now owns 4,727,808 shares of the company’s stock valued at $21,748,000 after purchasing an additional 3,306,024 shares during the last quarter. Riposte Capital LLC bought a new position in shares of Snap in the 1st quarter valued at $5,520,000. Finally, CenterBook Partners LP grew its position in Snap by 175.4% in the third quarter. CenterBook Partners LP now owns 1,197,958 shares of the company’s stock valued at $6,469,000 after acquiring an additional 762,979 shares during the last quarter. 47.52% of the stock is owned by institutional investors.

Trending Headlines about Snap

Here are the key news stories impacting Snap this week:

• Positive Sentiment: Snap reported revenue growth of 14% year over year and better-than-expected adjusted earnings. The company also returned to profitability on the measure cited in earnings coverage. Snap shares fall as revenue and daily users miss estimates
• Positive Sentiment: Snapchat+ surpassed 30 million paid subscribers, adding 5 million since February and offering a growing source of revenue beyond advertising. Snapchat surpasses 30M paid subscribers
• Neutral Sentiment: Snap forecast fourth-quarter revenue of $1.95 billion to $1.99 billion. The company also announced a change to how it measures user engagement, which may complicate comparisons with prior periods. Snap shares fall over 10% on third-quarter earnings miss
• Negative Sentiment: Third-quarter revenue of $1.72 billion came in below the $1.73 billion consensus, while daily active users also missed expectations. Sluggish advertising growth raised concerns about the pace of Snap’s ad recovery and drove the negative market reaction. Snap stock falls as revenue and user growth miss estimates
• Negative Sentiment: Cantor Fitzgerald lowered its price target from $6 to $5 and maintained a neutral rating, adding to pressure on the shares. Cantor Fitzgerald stock recommendations

Snap Company Profile

Snap Inc is a technology and social media company best known for Snapchat, a visual messaging and social networking application. Snapchat enables users to communicate through photos, videos, messages and Stories, while offering creative tools such as augmented reality (AR) Lenses and filters. The platform also includes features such as Snap Map, Spotlight and content from publishers and creators.

Snap generates most of its revenue from digital advertising, including video, augmented reality and other advertising formats delivered across Snapchat.