Snap (NYSE:SNAP) Upgraded at Freedom Capital

Freedom Capital upgraded shares of Snap (NYSE:SNAP) from a hold rating to a strong-buy rating in a research report report published on Tuesday morning,Zacks.com reports.

Several other equities analysts also recently commented on SNAP. Sanford C. Bernstein reiterated a “market perform” rating and issued a $5.00 target price on shares of Snap in a research report on Tuesday, July 21st. Zacks Research downgraded Snap from a “hold” rating to a “strong sell” rating in a research note on Monday. DA Davidson raised their price objective on shares of Snap from $5.00 to $5.25 and gave the company a “neutral” rating in a report on Tuesday. HSBC downgraded shares of Snap from a “hold” rating to a “hold” rating in a research report on Monday, April 27th. Finally, Mizuho raised their price target on shares of Snap from $5.00 to $6.00 and gave the company a “neutral” rating in a research note on Tuesday. Two research analysts have rated the stock with a Strong Buy rating, eight have given a Buy rating, twenty-three have issued a Hold rating and three have assigned a Sell rating to the company. Based on data from MarketBeat, the company has a consensus rating of “Hold” and an average price target of $7.65.

Snap Stock Down 2.2%

Shares of NYSE:SNAP opened at $5.21 on Tuesday. Snap has a 52-week low of $3.81 and a 52-week high of $9.28. The company has a market capitalization of $8.81 billion, a PE ratio of -28.97 and a beta of 1.03. The company has a debt-to-equity ratio of 1.75, a quick ratio of 3.53 and a current ratio of 2.94. The company has a fifty day moving average of $4.93 and a 200-day moving average of $5.29.

Snap (NYSE:SNAP) last released its quarterly earnings data on Monday, August 3rd. The company reported ($0.10) earnings per share for the quarter, beating the consensus estimate of ($0.12) by $0.02. The company had revenue of $1.60 billion for the quarter, compared to the consensus estimate of $1.54 billion. Snap had a negative return on equity of 14.61% and a negative net margin of 4.90%.Snap’s revenue for the quarter was up 18.9% on a year-over-year basis. During the same quarter last year, the business posted ($0.16) EPS. On average, equities analysts predict that Snap will post -0.07 EPS for the current fiscal year.

Insider Buying and Selling at Snap

In other Snap news, CTO Robert C. Murphy sold 2,000,000 shares of the firm’s stock in a transaction on Wednesday, May 13th. The shares were sold at an average price of $5.44, for a total value of $10,880,000.00. Following the transaction, the chief technology officer directly owned 47,012,324 shares of the company’s stock, valued at approximately $255,747,042.56. This trade represents a 4.08% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CFO Douglas Hott sold 124,209 shares of Snap stock in a transaction dated Monday, May 18th. The shares were sold at an average price of $5.60, for a total transaction of $695,570.40. Following the transaction, the chief financial officer owned 2,571,149 shares of the company’s stock, valued at $14,398,434.40. This represents a 4.61% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold 2,868,059 shares of company stock worth $15,855,631 in the last quarter. Company insiders own 22.68% of the company’s stock.

Hedge Funds Weigh In On Snap

Large investors have recently added to or reduced their stakes in the business. Handelsbanken Fonder AB boosted its stake in Snap by 21.2% during the 2nd quarter. Handelsbanken Fonder AB now owns 352,900 shares of the company’s stock valued at $1,567,000 after purchasing an additional 61,700 shares during the last quarter. Gradient Investments LLC raised its stake in shares of Snap by 7.1% in the second quarter. Gradient Investments LLC now owns 188,827 shares of the company’s stock worth $838,000 after purchasing an additional 12,492 shares during the last quarter. Assenagon Asset Management S.A. raised its stake in shares of Snap by 1,191.8% in the second quarter. Assenagon Asset Management S.A. now owns 3,903,141 shares of the company’s stock worth $17,330,000 after purchasing an additional 3,601,002 shares during the last quarter. Fermata Advisors LLC bought a new position in shares of Snap in the second quarter valued at approximately $75,000. Finally, Dynamic Advisor Solutions LLC bought a new position in shares of Snap in the second quarter valued at approximately $47,000. Institutional investors own 47.52% of the company’s stock.

Key Snap News

Here are the key news stories impacting Snap this week:

• Positive Sentiment: Better-than-expected Q2 results support turnaround hopes. Snap reported adjusted EPS of $(0.10), ahead of the $(0.12) consensus estimate, while revenue of $1.60 billion exceeded forecasts and increased 18.9% year over year. The results have strengthened the case that advertising and user-growth improvements could support a recovery. Snap: Strong Q2 Earnings Bolster Hopes Of A Turnaround
• Positive Sentiment: Several analysts see upside. Cantor Fitzgerald issued a bullish forecast, Wells Fargo said the stock is expected to rise, and Citigroup raised its price target to $6.75. Heavy trading in Snap call options also indicates increased speculative interest following the earnings report. Cantor Fitzgerald Forecasts Strong Price Appreciation Wells Fargo Analyst Forecast Citigroup Raises Price Target
• Neutral Sentiment: Analyst views remain divided. Citizens JMP reiterated a Market Perform rating, suggesting the earnings improvement may already be reflected in the stock. A speculative article about a possible future acquisition of Snap offers no confirmed transaction or takeover discussions. Citizens JMP Reiterates Market Perform Who Might Buy Snap If Its Founders Ever Decide to Sell
• Negative Sentiment: Bearish ratings are limiting enthusiasm. Rosenblatt Securities issued a pessimistic forecast, while Zacks Research downgraded Snap to “Strong Sell.” Snap also remains unprofitable, with analysts expecting a loss for the full year, and its shares are near the 200-day moving average after retreating from the post-earnings surge. Rosenblatt Pessimistic Forecast Zacks Downgrade

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.