Snap (NYSE:SNAP) Stock Price Target Lowered at Citigroup

Key Points

• Citigroup cut its Snap price target from $6.75 to $6.00, maintaining a neutral rating; the new target implies 20.7% upside from the prior close.
• Analyst sentiment is mostly cautious: Snap has an average “Hold” rating and a consensus price target of $7.31.
• Snap reported quarterly revenue of $1.72 billion, below the $1.73 billion estimate, though revenue grew 14.3% year over year; earnings were $0.03 per share.

Snap (NYSE:SNAP - Get Free Report) had its price target decreased by stock analysts at Citigroup from $6.75 to $6.00 in a report issued on Friday, Benzinga reports. The firm presently has a "neutral" rating on the stock. Citigroup's target price would suggest a potential upside of 20.70% from the company's previous close.

Other analysts have also recently issued reports about the company. Piper Sandler restated a "neutral" rating on shares of Snap in a research report on Tuesday, August 4th. The Goldman Sachs Group reiterated a "neutral" rating and set a $6.50 price target on shares of Snap in a research report on Tuesday, August 4th. Mizuho increased their price target on Snap from $5.00 to $6.00 and gave the stock a "neutral" rating in a research note on Tuesday, August 4th. Sanford C. Bernstein reissued a "market perform" rating and issued a $5.00 price target on shares of Snap in a research note on Tuesday, July 21st. Finally, UBS Group reissued a "buy" rating on shares of Snap in a report on Thursday. One equities research analyst has rated the stock with a Strong Buy rating, eleven have given a Buy rating, twenty-three have assigned a Hold rating and two have issued a Sell rating to the stock. According to data from MarketBeat, the stock presently has an average rating of "Hold" and a consensus target price of $7.31.

Snap Stock Performance

Snap stock traded down $0.12 during midday trading on Friday, reaching $4.97. 40,415,692 shares of the stock traded hands, compared to its average volume of 45,545,051. The company has a current ratio of 2.94, a quick ratio of 2.94 and a debt-to-equity ratio of 1.75. The firm has a fifty day moving average price of $5.75 and a two-hundred day moving average price of $5.41. The firm has a market cap of $8.41 billion, a price-to-earnings ratio of -55.23 and a beta of 1.23. Snap has a fifty-two week low of $3.81 and a fifty-two week high of $9.13.

Snap (NYSE:SNAP - Get Free Report) last announced its quarterly earnings results on Wednesday, November 4th. The company reported $0.03 EPS for the quarter. The company had revenue of $1.72 billion for the quarter, compared to analyst estimates of $1.73 billion. Snap had a negative net margin of 2.30% and a negative return on equity of 7.21%. Snap's revenue was up 14.3% compared to the same quarter last year. During the same quarter last year, the business earned ($0.06) earnings per share. On average, equities research analysts forecast that Snap will post -0.03 earnings per share for the current year.

Insider Transactions at Snap

In related news, insider Ajit Mohan sold 6,797 shares of the business's stock in a transaction that occurred on Wednesday, September 16th. The stock was sold at an average price of $5.82, for a total transaction of $39,558.54. Following the sale, the insider owned 4,965,300 shares of the company's stock, valued at $28,898,046. The trade was a 0.14% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CFO Douglas Hott sold 131,884 shares of the company'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 value of $685,796.80. Following the completion of the sale, the chief financial officer owned 2,324,563 shares of the company's stock, valued at $12,087,727.60. This trade represents a 5.37% decrease in their ownership of the stock. 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. Insiders sold 445,926 shares of company stock worth $2,326,930 in the last three months. 22.68% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of SNAP. Saba Capital Management L.P. boosted its holdings in shares of 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 buying an additional 3,306,024 shares during the period. Empyrean Capital Partners LP purchased a new position in shares of Snap in the first quarter worth approximately $25,300,000. Assenagon Asset Management S.A. increased its position 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 acquiring an additional 3,601,002 shares in the last quarter. Curated Wealth Partners LLC raised its holdings in shares of Snap by 540.0% during the third quarter. Curated Wealth Partners LLC now owns 544,828 shares of the company's stock valued at $2,942,000 after acquiring an additional 459,704 shares during the period. Finally, First Trust Advisors LP raised its holdings in shares of Snap by 302.9% during the first quarter. First Trust Advisors LP now owns 389,736 shares of the company's stock valued at $1,793,000 after acquiring an additional 293,003 shares during the period. 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, adding 5 million since February and providing a growing source of subscription revenue beyond advertising. Snapchat surpasses 30M paid subscribers
• Positive Sentiment: Snap reportedly beat adjusted earnings expectations, while revenue grew 14.3% year over year. That improvement was not enough to offset the top-line miss. Snap Shares Fall More Than 10% as Revenue and User Growth Miss Forecasts Despite Higher Earnings
• Neutral Sentiment: Unusually high call-option activity—105,767 contracts, about 51% above typical volume—may signal bullish positioning, but options trading can be speculative and does not establish a change in fundamentals. Traders Purchase High Volume of Call Options on Snap
• Negative Sentiment: Third-quarter revenue was $1.72 billion, below the $1.73 billion estimate, and daily active users also missed forecasts. The shortfalls raised concerns about user momentum and the pace of an advertising recovery. Snap shares fall as revenue and daily users miss estimates
• Negative Sentiment: Several firms cut price targets: JPMorgan lowered its target to $5 and assigned an underweight rating; Cantor Fitzgerald cut to $5 and kept a neutral rating; UBS reduced its target to $6 and stayed neutral. Barclays also halved its target to $8, though it retained an overweight rating. The cluster of reductions underscores lowered expectations. JPMorgan analyst recommendations

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.

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