Snap (NYSE:SNAP) Sets New 52-Week Low – Here’s Why

Snap Inc. (NYSE:SNAP)’s share price hit a new 52-week low on Thursday . The company traded as low as $4.52 and last traded at $4.5550, with a volume of 4906601 shares trading hands. The stock had previously closed at $4.62.

Analyst Ratings Changes

Several brokerages have recently issued reports on SNAP. Weiss Ratings reiterated a “sell (e+)” rating on shares of Snap in a report on Wednesday, January 21st. TD Cowen cut their price objective on Snap from $9.00 to $8.00 and set a “hold” rating on the stock in a report on Thursday, February 5th. JPMorgan Chase & Co. reduced their price objective on Snap from $8.00 to $7.00 and set an “underweight” rating on the stock in a research report on Thursday, February 5th. Loop Capital set a $8.00 target price on Snap in a report on Monday, February 23rd. Finally, The Goldman Sachs Group dropped their target price on Snap from $9.50 to $8.50 and set a “neutral” rating for the company in a research report on Tuesday, January 13th. One investment analyst has rated the stock with a Strong Buy rating, five have given a Buy rating, twenty have issued a Hold rating and three have assigned a Sell rating to the company’s stock. According to MarketBeat, Snap currently has an average rating of “Hold” and a consensus price target of $8.17.

Snap Price Performance

The stock has a market cap of $7.57 billion, a P/E ratio of -16.61 and a beta of 0.83. The company’s 50 day moving average price is $5.83 and its 200-day moving average price is $7.18. The company has a quick ratio of 3.56, a current ratio of 3.56 and a debt-to-equity ratio of 1.53.

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). The business had revenue of $1.72 billion during the quarter, compared to the consensus estimate of $1.70 billion. Snap had a negative return on equity of 20.72% and a negative net margin of 7.76%.The business’s revenue for the quarter was up 10.2% compared to the same quarter last year. During the same period in the prior year, the firm earned $0.01 EPS. As a group, sell-side analysts expect that Snap Inc. will post -0.3 earnings per share for the current year.

Insider Buying and Selling

In other Snap news, CTO Robert C. Murphy sold 1,000,000 shares of the company’s stock in a transaction dated Tuesday, February 10th. The stock was sold at an average price of $5.36, for a total value of $5,360,000.00. Following the sale, the chief technology officer owned 49,313,775 shares in the company, valued at approximately $264,321,834. The trade was a 1.99% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through this link. Also, insider Ajit Mohan sold 119,339 shares of the stock in a transaction dated Tuesday, February 17th. The shares were sold at an average price of $4.70, for a total value of $560,893.30. Following the completion of the sale, the insider directly owned 5,158,477 shares of the company’s stock, valued at approximately $24,244,841.90. The trade was a 2.26% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 2,570,641 shares of company stock valued at $13,436,343 over the last 90 days. 22.68% of the stock is owned by corporate insiders.

Institutional Trading of Snap

A number of institutional investors and hedge funds have recently added to or reduced their stakes in SNAP. Allworth Financial LP raised its holdings in Snap by 92.3% during the 3rd quarter. Allworth Financial LP now owns 3,293 shares of the company’s stock worth $25,000 after purchasing an additional 1,581 shares during the last quarter. Arax Advisory Partners boosted its stake in shares of Snap by 220.0% in the 4th quarter. Arax Advisory Partners now owns 3,309 shares of the company’s stock valued at $27,000 after purchasing an additional 2,275 shares during the last quarter. V Square Quantitative Management LLC acquired a new stake in shares of Snap during the fourth quarter worth $29,000. EverSource Wealth Advisors LLC raised its stake in Snap by 561.4% during the fourth quarter. EverSource Wealth Advisors LLC now owns 3,618 shares of the company’s stock worth $29,000 after buying an additional 3,071 shares during the last quarter. Finally, Mirae Asset Global Investments Co. Ltd. bought a new position in Snap during the third quarter worth $33,000. 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.