Snap (NYSE:SNAP) Shares Gap Up – Should You Buy?

Snap Inc. (NYSE:SNAP)’s stock price gapped up before the market opened on Thursday . The stock had previously closed at $7.37, but opened at $7.73. Snap shares last traded at $7.7350, with a volume of 11,433,508 shares traded.

Wall Street Analysts Forecast Growth

SNAP has been the subject of several recent analyst reports. BNP Paribas Exane started coverage on Snap in a research note on Wednesday, January 14th. They issued a “strong sell” rating for the company. Cantor Fitzgerald upped their target price on shares of Snap from $7.00 to $9.00 and gave the stock a “neutral” rating in a research report on Thursday, November 6th. Morgan Stanley raised their target price on shares of Snap from $8.50 to $9.50 and gave the company an “equal weight” rating in a research note on Tuesday, January 13th. Arete Research upgraded shares of Snap from a “sell” rating to a “neutral” rating in a report on Tuesday, November 18th. Finally, Rosenblatt Securities increased their price objective on shares of Snap from $8.70 to $9.50 and gave the company a “neutral” rating in a report on Thursday, November 6th. Three analysts have rated the stock with a Buy rating, twenty-four have given a Hold rating and five have assigned a Sell rating to the company. According to data from MarketBeat, the company has an average rating of “Reduce” and a consensus target price of $9.82.

Snap Stock Up 3.6%

The company has a market cap of $13.13 billion, a PE ratio of -26.29 and a beta of 0.81. The company has a fifty day moving average of $7.86 and a two-hundred day moving average of $8.05. The company has a debt-to-equity ratio of 1.57, a quick ratio of 3.67 and a current ratio of 3.67.

Snap (NYSE:SNAP) last posted its quarterly earnings data on Thursday, November 6th. The company reported ($0.06) earnings per share for the quarter, missing analysts’ consensus estimates of $0.06 by ($0.12). The firm had revenue of $1.51 billion for the quarter, compared to the consensus estimate of $1.49 billion. Snap had a negative net margin of 8.60% and a negative return on equity of 21.61%. The company’s revenue was up 9.8% on a year-over-year basis. During the same quarter last year, the firm earned ($0.09) EPS. As a group, analysts anticipate that Snap Inc. will post -0.3 earnings per share for the current fiscal year.

Insider Activity

In other news, CFO Derek Andersen sold 23,715 shares of the company’s stock in a transaction that occurred on Wednesday, January 14th. The stock was sold at an average price of $7.83, for a total transaction of $185,688.45. Following the transaction, the chief financial officer owned 2,972,051 shares of the company’s stock, valued at approximately $23,271,159.33. This represents a 0.79% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. Also, General Counsel Michael J. O’sullivan sold 70,882 shares of the stock in a transaction that occurred on Monday, November 17th. The stock was sold at an average price of $8.34, for a total value of $591,155.88. Following the completion of the sale, the general counsel owned 1,854,982 shares in the company, valued at approximately $15,470,549.88. The trade was a 3.68% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 1,417,341 shares of company stock worth $11,354,730 in the last ninety days. 22.68% of the stock is currently owned by company insiders.

Institutional Trading of Snap

A number of large investors have recently made changes to their positions in the stock. Sumitomo Mitsui Trust Group Inc. grew its stake in Snap by 31.7% in the second quarter. Sumitomo Mitsui Trust Group Inc. now owns 4,208,697 shares of the company’s stock worth $36,574,000 after purchasing an additional 1,013,757 shares in the last quarter. Nikko Asset Management Americas Inc. lifted its holdings in shares of Snap by 94.1% in the 2nd quarter. Nikko Asset Management Americas Inc. now owns 2,107,288 shares of the company’s stock worth $18,312,000 after buying an additional 1,021,677 shares during the period. Y Intercept Hong Kong Ltd purchased a new stake in shares of Snap in the 2nd quarter worth $2,723,000. Arkadios Wealth Advisors bought a new position in shares of Snap during the 2nd quarter worth $1,256,000. Finally, CWM LLC increased its stake in shares of Snap by 50.5% during the third quarter. CWM LLC now owns 387,935 shares of the company’s stock valued at $2,991,000 after buying an additional 130,172 shares during the period. 47.52% of the stock is owned by hedge funds and other institutional investors.

About Snap

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.