Snap Inc. (NYSE:SNAP) Receives $7.65 Consensus Price Target from Analysts

Snap Inc. (NYSE:SNAP) has been given a consensus recommendation of “Hold” by the thirty-six ratings firms that are presently covering the company, MarketBeat Ratings reports. Two equities research analysts have rated the stock with a sell recommendation, twenty-four have given a hold recommendation, nine have assigned a buy recommendation and one has assigned a strong buy recommendation to the company. The average 12-month target price among brokers that have issued ratings on the stock in the last year is $7.6483.

Several brokerages have recently commented on SNAP. Barclays increased their price target on shares of Snap from $15.00 to $16.00 and gave the stock an “overweight” rating in a research note on Tuesday, August 4th. Piper Sandler reissued a “neutral” rating on shares of Snap in a research report on Tuesday, August 4th. Sanford C. Bernstein restated a “market perform” rating and set a $5.00 target price on shares of Snap in a report on Tuesday, July 21st. DA Davidson upped their price target on Snap from $5.00 to $5.25 and gave the stock a “neutral” rating in a research note on Tuesday, August 4th. Finally, Weiss Ratings reissued a “sell (e+)” rating on shares of Snap in a report on Friday, July 17th.

Snap Price Performance

SNAP opened at $5.62 on Friday. The stock has a fifty day moving average price of $5.24 and a 200 day moving average price of $5.20. The company has a current ratio of 2.94, a quick ratio of 2.94 and a debt-to-equity ratio of 1.75. Snap has a 1 year low of $3.81 and a 1 year high of $9.13. The stock has a market cap of $9.50 billion, a price-to-earnings ratio of -31.20 and a beta of 1.05.

Snap (NYSE:SNAP) last announced its quarterly earnings results on Monday, August 3rd. The company reported ($0.10) earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.12) by $0.02. Snap had a negative return on equity of 14.61% and a negative net margin of 4.90%.The business had revenue of $1.60 billion during the quarter, compared to analyst estimates of $1.54 billion. During the same period in the previous year, the company earned ($0.16) EPS. The firm’s revenue was up 18.9% on a year-over-year basis. Analysts forecast that Snap will post -0.02 EPS for the current fiscal year.

Insider Activity

In other Snap news, CTO Robert Murphy sold 2,000,000 shares of the company’s stock in a transaction that occurred on Wednesday, August 5th. The stock was 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 owned 41,809,791 shares of the company’s stock, valued at $232,044,340.05. This represents a 4.57% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, CFO Douglas Hott sold 131,884 shares of Snap 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 completion of the transaction, the chief financial officer directly owned 2,324,563 shares in the company, valued at approximately $12,087,727.60. This represents a 5.37% decrease in their position. The disclosure for this sale is available in the SEC filing. 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 valued at $13,426,930.

Institutional Investors Weigh In On Snap

Several hedge funds and other institutional investors have recently made changes to their positions in the business. Empyrean Capital Partners LP acquired a new stake in Snap in the first quarter worth about $25,300,000. Assenagon Asset Management S.A. lifted its position in Snap by 1,191.8% during the 2nd quarter. Assenagon Asset Management S.A. now owns 3,903,141 shares of the company’s stock valued at $17,330,000 after purchasing an additional 3,601,002 shares during the period. Saba Capital Management L.P. boosted its stake in shares of Snap by 232.5% in 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 purchasing an additional 3,306,024 shares during the last quarter. SG Americas Securities LLC boosted its stake in shares of Snap by 44.7% in the 1st quarter. SG Americas Securities LLC now owns 4,535,783 shares of the company’s stock valued at $20,865,000 after purchasing an additional 1,401,178 shares during the last quarter. Finally, Riposte Capital LLC acquired a new stake in shares of Snap during the 1st quarter worth approximately $5,520,000. 47.52% of the stock is owned by institutional investors and hedge funds.

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, text messages and augmented reality experiences, including Lenses and filters. The platform also offers Stories, Spotlight for short-form video, Snap Map and other tools for discovering and sharing content.

Snap generates most of its business through digital advertising, including advertising displayed across Snapchat’s content and communication features.