Cantor Fitzgerald Has Lowered Expectations for Snap (NYSE:SNAP) Stock Price

Key Points

• Cantor Fitzgerald cut its Snap price target from $6 to $5 while maintaining a neutral rating; the new target implies 15.47% downside from the prior close.
• Analyst sentiment is broadly cautious: Snap has a consensus “Hold” rating and an average price target of $7.68, with 22 analysts rating the stock Hold.
• Snap’s third-quarter revenue increased 14.3% year over year to $1.72 billion but fell short of the roughly $1.73 billion estimate.

Snap (NYSE:SNAP - Get Free Report) had its price target decreased by research analysts at Cantor Fitzgerald from $6.00 to $5.00 in a report released on Thursday, Benzinga reports. The brokerage presently has a "neutral" rating on the stock. Cantor Fitzgerald's price target indicates a potential downside of 15.47% from the company's previous close.

Other equities analysts have also issued research reports about the stock. Susquehanna restated a "neutral" rating on shares of Snap in a research report on Tuesday, August 4th. Truist Financial reduced their price target on shares of Snap from $8.00 to $7.00 and set a "hold" rating on the stock in a report on Tuesday, August 4th. Wells Fargo & Company boosted their price target on shares of Snap from $5.00 to $6.00 and gave the stock an "equal weight" rating in a research note on Tuesday, August 4th. Benchmark reissued a "hold" rating on shares of Snap in a report on Tuesday, August 4th. Finally, Royal Bank Of Canada restated a "sector perform" rating and set a $8.00 price objective on shares of Snap in a research report on Thursday, September 17th. One analyst has rated the stock with a Strong Buy rating, eleven have assigned a Buy rating, twenty-two have given a Hold rating and two have issued a Sell rating to the company. According to data from MarketBeat.com, Snap presently has a consensus rating of "Hold" and an average target price of $7.68.

Snap Stock Up 5.8%

Snap stock opened at $5.92 on Thursday. The company has a debt-to-equity ratio of 1.75, a quick ratio of 2.94 and a current ratio of 2.94. Snap has a one year low of $3.81 and a one year high of $9.13. The stock has a market cap of $10.00 billion, a PE ratio of -32.86 and a beta of 1.23. The stock has a fifty day moving average of $5.76 and a 200 day moving average of $5.42.

Snap (NYSE:SNAP - Get Free Report) last released its earnings results on Thursday, November 5th. The company reported $0.03 earnings per share (EPS) for the quarter. Snap had a negative net margin of 4.90% and a negative return on equity of 14.61%. The company had revenue of $1.72 billion during the quarter, compared to analyst estimates of $1.73 billion. During the same period in the prior year, the firm posted ($0.06) EPS. The firm's quarterly revenue was up 14.3% compared to the same quarter last year. As a group, sell-side analysts predict that Snap will post -0.03 EPS for the current year.

Insider Buying and Selling at Snap

In related news, insider Ajit Mohan sold 6,797 shares of Snap stock in a transaction dated Wednesday, September 16th. The stock was sold at an average price of $5.82, for a total value of $39,558.54. Following the completion of the transaction, the insider owned 4,965,300 shares in the company, valued at approximately $28,898,046. This trade represents a 0.14% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, General Counsel Zachary M. Briers sold 11,257 shares of the business's stock in a transaction that occurred on Thursday, September 3rd. The stock was sold at an average price of $6.00, for a total value of $67,542.00. Following the sale, the general counsel directly owned 2,345,534 shares in the company, valued at $14,073,204. The trade was a 0.48% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last three months, insiders have sold 445,926 shares of company stock worth $2,326,930. Company insiders own 22.68% of the company's stock.

Hedge Funds Weigh In On Snap

Several large investors have recently modified their holdings of SNAP. Assenagon Asset Management S.A. lifted 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 purchased a new position in Snap during the 1st quarter valued at $25,300,000. Saba Capital Management L.P. boosted its holdings in 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 bought a new position in Snap in the 1st quarter valued at $5,520,000. Finally, CenterBook Partners LP grew its position in Snap by 175.4% in the 3rd quarter. CenterBook Partners LP now owns 1,197,958 shares of the company's stock valued at $6,469,000 after acquiring an additional 762,979 shares during the last quarter. Institutional investors own 47.52% of the company's stock.

Snap News Summary

Here are the key news stories impacting Snap this week:

• Positive Sentiment: Snapchat+ surpassed 30 million paid subscribers, up 5 million since February, adding to the company’s subscription monetization opportunity. Snapchat surpasses 30M paid subscribers
• Positive Sentiment: Third-quarter revenue rose 14.3% year over year to $1.72 billion, while earnings improved from the year-ago period, indicating continued growth despite the quarterly miss. Snap quarterly earnings results
• Neutral Sentiment: Snap forecast fourth-quarter revenue of $1.95 billion to $1.99 billion. Investors will look for evidence that growth can improve as the company works to monetize its audience. Snap shares fall over 10% on third-quarter earnings miss
• Neutral Sentiment: Trading in Snap call options was unusually active, but the increase in call buying alone does not establish a clear outlook for the shares.
• Negative Sentiment: Snap missed analysts’ revenue estimate, reporting $1.72 billion versus about $1.73 billion expected, and daily active users also came in below expectations. Adjusted earnings were reported at $0.15 per share versus a $0.16 consensus estimate. Shares declined following the results. Snap lags Q3 earnings and revenue estimates
• Negative Sentiment: Commentary on the quarter highlighted continued weakness in advertising and concerns that stock-based compensation dilutes the quality of reported profitability, tempering optimism about subscriber growth. Snap Q3: The Potential Is There - The Conviction Isn't

About Snap

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.

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