Snap (NYSE:SNAP) Stock Falls 4.2% – Here’s What Happened

Snap Inc. (NYSE:SNAP)’s stock price fell 4.2% on Tuesday. The company traded as low as $6.12 and last traded at $6.0750. Approximately 3,641,857 shares traded hands during mid-day trading, a decline of 92% from the average daily volume of 45,226,848 shares. The stock had previously closed at $6.34.

Analyst Upgrades and Downgrades

Several equities analysts have issued reports on SNAP shares. Cantor Fitzgerald upped their target price on shares of Snap from $5.00 to $6.00 and gave the company a “neutral” rating in a research note on Tuesday, August 4th. Benchmark reiterated a “hold” rating on shares of Snap in a research note on Tuesday, August 4th. Wells Fargo & Company boosted their price objective on shares of Snap from $5.00 to $6.00 and gave the company an “equal weight” rating in a report on Tuesday, August 4th. The Goldman Sachs Group restated a “neutral” rating and set a $6.50 price objective on shares of Snap in a research report on Tuesday, August 4th. Finally, Barclays increased their price objective on shares of Snap from $15.00 to $16.00 and gave the company an “overweight” rating in a research report on Tuesday, August 4th. One analyst has rated the stock with a Strong Buy rating, ten have given a Buy rating, twenty-three have given a Hold rating and two have assigned a Sell rating to the company. According to data from MarketBeat, the stock has an average rating of “Hold” and a consensus target price of $7.68.

Snap Stock Performance

The business has a fifty day simple moving average of $5.71 and a two-hundred day simple moving average of $5.51. The company has a quick ratio of 2.94, a current ratio of 2.94 and a debt-to-equity ratio of 1.75. The company has a market cap of $10.36 billion, a P/E ratio of -34.03 and a beta of 1.07.

Snap (NYSE:SNAP) last released its quarterly earnings results on Monday, August 3rd. The company reported ($0.10) earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of ($0.12) by $0.02. The business had revenue of $1.60 billion during 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%. The business’s quarterly revenue was up 18.9% compared to the same quarter last year. During the same period in the previous year, the company posted ($0.16) EPS. On average, sell-side analysts anticipate that Snap Inc. will post -0.03 EPS for the current year.

Insider Transactions at Snap

In related news, CTO Robert Murphy sold 2,000,000 shares of the business’s stock in a transaction that occurred on Wednesday, August 5th. The shares were sold at an average price of $5.55, for a total transaction of $11,100,000.00. Following the completion of the sale, the chief technology officer directly owned 41,809,791 shares in the company, valued at approximately $232,044,340.05. The trade was a 4.57% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, CFO Douglas Hott sold 131,884 shares of the company’s stock in a transaction that occurred on Monday, August 17th. The shares were sold at an average price of $5.20, for a total transaction of $685,796.80. Following the sale, the chief financial officer directly owned 2,324,563 shares of the company’s stock, valued at approximately $12,087,727.60. This represents a 5.37% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last ninety days, insiders have sold 2,445,926 shares of company stock worth $13,426,930.

Institutional Inflows and Outflows

Several institutional investors have recently added to or reduced their stakes in the business. Assenagon Asset Management S.A. boosted its stake in shares of Snap by 278.5% during the 3rd quarter. Assenagon Asset Management S.A. now owns 14,771,533 shares of the company’s stock worth $79,766,000 after acquiring an additional 10,868,392 shares during the last quarter. Empyrean Capital Partners LP bought a new stake in shares of Snap during the 1st quarter valued at $25,300,000. Saba Capital Management L.P. grew its position in shares of Snap by 232.5% during 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 acquiring an additional 3,306,024 shares during the period. Riposte Capital LLC purchased a new stake in shares of Snap in the 1st quarter worth $5,520,000. Finally, Curated Wealth Partners LLC increased its stake in shares of Snap by 540.0% in the 3rd quarter. Curated Wealth Partners LLC now owns 544,828 shares of the company’s stock worth $2,942,000 after purchasing an additional 459,704 shares in the last quarter. 47.52% of the stock is currently owned by institutional investors.

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.