Snap (NYSE:SNAP) Given New $5.00 Price Target at JPMorgan Chase & Co.

Key Points

• JPMorgan cut its Snap price target from $6 to $5 and maintained an “underweight” rating, implying 1.44% downside from the prior close.
• Snap shares fell 14.3% on Thursday to $5.07. Analysts overall remained more mixed, with a consensus “Hold” rating and a $7.36 average price target.
• Quarterly revenue increased 14.3% year over year to $1.72 billion but missed analysts’ $1.73 billion estimate.

Snap (NYSE:SNAP - Get Free Report) had its target price decreased by JPMorgan Chase & Co. from $6.00 to $5.00 in a research report issued to clients and investors on Thursday, Benzinga reports. The brokerage currently has an "underweight" rating on the stock. JPMorgan Chase & Co.'s price target points to a potential downside of 1.44% from the stock's previous close.

Several other research analysts also recently weighed in on SNAP. Citizens Jmp reiterated a "market perform" rating on shares of Snap in a research report on Tuesday, August 4th. Zacks Research raised shares of Snap from a "strong sell" rating to a "hold" rating in a research report on Tuesday, September 1st. Benchmark reissued a "hold" rating on shares of Snap in a research report on Tuesday, August 4th. DA Davidson upped their price objective on Snap from $5.00 to $5.25 and gave the stock a "neutral" rating in a research note on Tuesday, August 4th. Finally, Wells Fargo & Company raised their target price on Snap from $5.00 to $6.00 and gave the stock an "equal weight" rating in a report on Tuesday, August 4th. One research analyst has rated the stock with a Strong Buy rating, twelve have issued a Buy rating, twenty-two have issued a Hold rating and two have issued a Sell rating to the company's stock. According to data from MarketBeat.com, Snap presently has a consensus rating of "Hold" and a consensus target price of $7.36.

Snap Stock Down 14.3%

Shares of NYSE SNAP traded down $0.85 on Thursday, reaching $5.07. 81,385,602 shares of the company's stock traded hands, compared to its average volume of 45,608,992. The business's 50 day simple moving average is $5.76 and its two-hundred day simple moving average is $5.42. Snap has a 12 month low of $3.81 and a 12 month high of $9.13. The company has a market cap of $8.58 billion, a price-to-earnings ratio of -28.18 and a beta of 1.23. The company has a quick ratio of 2.94, a current ratio of 2.94 and a debt-to-equity ratio of 1.75.

Snap (NYSE:SNAP - Get Free Report) last announced its quarterly 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 for the quarter, compared to analysts' expectations of $1.73 billion. During the same quarter in the previous year, the business posted ($0.06) EPS. Snap's revenue was up 14.3% compared to the same quarter last year. As a group, equities research analysts forecast that Snap will post -0.03 EPS for the current fiscal year.

Insider Activity

In related news, General Counsel Zachary Briers sold 136,504 shares of the firm's stock in a transaction that occurred on Monday, August 17th. The stock was sold at an average price of $5.20, for a total transaction of $709,820.80. Following the completion of the sale, the general counsel directly owned 2,424,331 shares of the company's stock, valued at approximately $12,606,521.20. This trade represents a 5.33% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CAO Rebecca Morrow sold 20,000 shares of the stock in a transaction on Wednesday, September 9th. The stock was sold at an average price of $5.35, for a total value of $107,000.00. Following the completion of the sale, the chief accounting officer owned 578,105 shares in the company, valued at approximately $3,092,861.75. The trade was a 3.34% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 445,926 shares of company stock valued at $2,326,930 in the last quarter. 22.68% of the stock is currently owned by company insiders.

Institutional Trading of Snap

A number of hedge funds have recently added to or reduced their stakes in SNAP. Assenagon Asset Management S.A. grew its holdings in Snap by 278.5% in the third quarter. Assenagon Asset Management S.A. now owns 14,771,533 shares of the company's stock worth $79,766,000 after purchasing an additional 10,868,392 shares during the last quarter. Empyrean Capital Partners LP acquired a new stake in shares of Snap in the 1st quarter worth $25,300,000. Saba Capital Management L.P. boosted its holdings in Snap by 232.5% in the first quarter. Saba Capital Management L.P. now owns 4,727,808 shares of the company's stock worth $21,748,000 after acquiring an additional 3,306,024 shares in the last quarter. Swiss National Bank grew its position in Snap by 7.1% during the 1st quarter. Swiss National Bank now owns 3,160,100 shares of the company's stock worth $14,536,000 after purchasing an additional 209,900 shares during the last quarter. Finally, CenterBook Partners LP grew its holdings in shares of Snap by 175.4% during the third quarter. CenterBook Partners LP now owns 1,197,958 shares of the company's stock valued at $6,469,000 after buying an additional 762,979 shares during the last quarter. 47.52% of the stock is owned by hedge funds and other institutional investors.

Key Stories Impacting Snap

Here are the key news stories impacting Snap this week:

• Positive Sentiment: Snapchat+ subscriptions reached 30 million, up 5 million since February, adding to the company’s potential to grow revenue beyond advertising. Snapchat surpasses 30M paid subscribers
• Positive Sentiment: The company returned to net profitability, and adjusted earnings exceeded expectations in some reports, although earnings measures differed across coverage. Snap earnings and user growth report
• Neutral Sentiment: Snap forecast fourth-quarter revenue of $1.95 billion to $1.99 billion; the outlook may provide a near-term benchmark, but the supplied reports do not establish how it compares with consensus. Snap shares fall over 10% on third-quarter earnings miss
• Neutral Sentiment: Barclays cut its price target from $16 to $8 but maintained an Overweight rating, while Cantor Fitzgerald lowered its target from $6 to $5 and kept a Neutral rating—signaling sharply reduced expectations but mixed analyst views. Barclays recommendations Cantor Fitzgerald recommendations
• Negative Sentiment: Third-quarter revenue rose 14% year over year to $1.72 billion but fell short of the $1.73 billion consensus. Daily active users also missed expectations, and reports cited sluggish ad sales, intensifying concerns about Snap’s core advertising recovery. Revenue and daily users miss estimates

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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