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

Shares of Snap Inc. (NYSE:SNAP) hit a new 52-week low on Tuesday . The stock traded as low as $4.71 and last traded at $4.6750, with a volume of 8442541 shares changing hands. The stock had previously closed at $4.83.

Analyst Upgrades and Downgrades

Several brokerages have recently commented on SNAP. JPMorgan Chase & Co. lowered their price objective on shares of Snap from $8.00 to $7.00 and set an “underweight” rating for the company in a research note on Thursday, February 5th. Mizuho cut their price objective on Snap from $9.00 to $7.00 and set a “neutral” rating on the stock in a research report on Thursday, February 5th. Wells Fargo & Company decreased their target price on Snap from $10.00 to $8.00 and set an “equal weight” rating for the company in a report on Thursday, February 5th. Morgan Stanley raised their price target on Snap from $8.50 to $9.50 and gave the stock an “equal weight” rating in a research note on Tuesday, January 13th. Finally, B. Riley Financial raised shares of Snap from a “neutral” rating to a “buy” rating and set a $10.00 target price for the company in a research report on Thursday, February 5th. One equities research analyst has rated the stock with a Strong Buy rating, four have given a Buy rating, twenty-two have assigned a Hold rating and three have issued a Sell rating to the stock. Based on data from MarketBeat.com, Snap presently has a consensus rating of “Hold” and an average price target of $8.43.

Snap Price Performance

The firm has a market cap of $8.01 billion, a P/E ratio of -17.54 and a beta of 0.83. The company has a debt-to-equity ratio of 1.53, a current ratio of 3.56 and a quick ratio of 3.56. The firm’s 50 day moving average is $7.25 and its 200 day moving average is $7.61.

Snap (NYSE:SNAP) last released its earnings results on Wednesday, February 4th. The company reported $0.03 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.15 by ($0.12). The business had revenue of $1.72 billion for the quarter, compared to analysts’ expectations of $1.70 billion. Snap had a negative net margin of 7.76% and a negative return on equity of 20.72%. Snap’s revenue for the quarter was up 10.2% on a year-over-year basis. During the same quarter in the previous year, the business posted $0.01 earnings per share. As a group, analysts anticipate that Snap Inc. will post -0.3 earnings per share for the current year.

Insider Buying and Selling

In other news, insider Ajit Mohan sold 28,137 shares of Snap stock in a transaction dated Tuesday, December 16th. The stock was sold at an average price of $7.21, for a total value of $202,867.77. Following the completion of the transaction, the insider owned 5,298,664 shares of the company’s stock, valued at $38,203,367.44. The trade was a 0.53% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, CFO Derek Andersen sold 34,535 shares of the stock in a transaction dated Tuesday, December 16th. The shares were sold at an average price of $7.21, for a total transaction of $248,997.35. Following the sale, the chief financial officer directly owned 2,995,766 shares in the company, valued at $21,599,472.86. This trade represents a 1.14% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 2,121,108 shares of company stock worth $11,527,802 in the last 90 days.

Hedge Funds Weigh In On Snap

Hedge funds and other institutional investors have recently modified their holdings of the company. Allworth Financial LP lifted its holdings in 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. Arax Advisory Partners grew its position in Snap by 220.0% during the fourth quarter. Arax Advisory Partners now owns 3,309 shares of the company’s stock valued at $27,000 after buying an additional 2,275 shares during the period. V Square Quantitative Management LLC purchased a new stake in Snap during the fourth quarter valued at approximately $29,000. EverSource Wealth Advisors LLC raised its position in Snap by 561.4% in the fourth quarter. EverSource Wealth Advisors LLC now owns 3,618 shares of the company’s stock worth $29,000 after acquiring an additional 3,071 shares during the period. Finally, Mirae Asset Global Investments Co. Ltd. bought a new position in Snap in the third quarter worth approximately $33,000. 47.52% of the stock is owned by institutional investors.

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.