Capital World Investors Has $672.90 Million Stake in Snap Inc. $SNAP

Key Points

• Capital World Investors increased its stake in Snap to 87,272,463 shares — a 5.16% stake valued at about $672.9 million after buying an additional 1.32 million shares in Q3.
• Company insiders have been selling: Ajit Mohan and CFO Derek Andersen sold shares on Feb 17, and insiders disposed of 2,526,487 shares worth roughly $13.44 million over the past 90 days.
• Analysts' consensus is a Hold with an average price target of $8.17; Snap missed EPS expectations ($0.03 vs. $0.15) while revenue rose 10.2% to $1.72 billion, and the stock is trading near its 52‑week low (~$4.65–$4.91).

Capital World Investors raised its position in Snap Inc. (NYSE:SNAP - Free Report) by 1.5% in the 3rd quarter, according to the company in its most recent 13F filing with the SEC. The fund owned 87,272,463 shares of the company's stock after buying an additional 1,316,448 shares during the period. Capital World Investors owned 5.16% of Snap worth $672,896,000 as of its most recent filing with the SEC.

Several other large investors have also recently made changes to their positions in SNAP. SG Americas Securities LLC raised its holdings in shares of Snap by 4,603.7% during the 2nd quarter. SG Americas Securities LLC now owns 3,006,711 shares of the company's stock worth $26,128,000 after acquiring an additional 2,942,789 shares in the last quarter. Dimensional Fund Advisors LP lifted its stake in shares of Snap by 27.9% during the 3rd quarter. Dimensional Fund Advisors LP now owns 6,117,858 shares of the company's stock worth $47,224,000 after acquiring an additional 1,335,830 shares during the last quarter. Contrarius Group Holdings Ltd bought a new stake in shares of Snap during the third quarter worth $10,256,000. Jump Financial LLC purchased a new stake in Snap in the second quarter worth about $10,330,000. Finally, Readystate Asset Management LP purchased a new stake in shares of Snap in the 3rd quarter worth approximately $8,873,000. 47.52% of the stock is owned by hedge funds and other institutional investors.

Analyst Ratings Changes

A number of analysts have recently weighed in on the stock. Guggenheim restated a "neutral" rating and issued a $6.50 price target on shares of Snap in a report on Thursday, February 5th. Cantor Fitzgerald dropped their price objective on shares of Snap from $9.00 to $7.00 and set a "neutral" rating on the stock in a report on Thursday, February 5th. Stifel Nicolaus set a $5.50 target price on Snap and gave the stock a "hold" rating in a report on Thursday, February 5th. Arete Research set a $7.30 price target on shares of Snap and gave the company a "buy" rating in a research report on Tuesday, February 10th. Finally, Weiss Ratings reiterated a "sell (e+)" rating on shares of Snap in a research report on Wednesday, January 21st. One investment analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating, twenty have given a Hold rating and three have issued a Sell rating to the company's stock. According to data from MarketBeat, the stock currently has an average rating of "Hold" and an average price target of $8.17.

Insider Activity at Snap

In related news, insider Ajit Mohan sold 119,339 shares of Snap stock in a transaction that occurred on Tuesday, February 17th. The shares were sold at an average price of $4.70, for a total value of $560,893.30. Following the completion of the transaction, the insider owned 5,158,477 shares in the company, valued at approximately $24,244,841.90. The trade was a 2.26% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, CFO Derek Andersen sold 63,041 shares of the company's stock in a transaction dated Tuesday, February 17th. The stock was sold at an average price of $4.70, for a total value of $296,292.70. Following the sale, the chief financial officer owned 3,892,617 shares in the company, valued at approximately $18,295,299.90. This trade represents a 1.59% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last ninety days, insiders sold 2,526,487 shares of company stock worth $13,435,587.

Snap Stock Down 4.4%

NYSE SNAP opened at $4.91 on Wednesday. The business's fifty day simple moving average is $6.42 and its 200-day simple moving average is $7.32. The company has a quick ratio of 3.56, a current ratio of 3.56 and a debt-to-equity ratio of 1.53. The firm has a market cap of $8.28 billion, a PE ratio of -18.17 and a beta of 0.83. Snap Inc. has a 52 week low of $4.65 and a 52 week high of $10.41.

Snap (NYSE:SNAP - Get Free Report) last released its quarterly earnings data on Wednesday, February 4th. The company reported $0.03 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.15 by ($0.12). The firm had revenue of $1.72 billion for the quarter, compared to analyst estimates of $1.70 billion. Snap had a negative return on equity of 20.72% and a negative net margin of 7.76%.Snap's revenue for the quarter was up 10.2% on a year-over-year basis. During the same quarter in the previous year, the business posted $0.01 earnings per share. As a group, equities analysts anticipate that Snap Inc. will post -0.3 earnings per share for the current year.

Snap Company Profile

Snap Inc is a camera and social media company best known for developing and operating Snapchat, a multimedia messaging application that allows users to send photos, videos and messages that disappear after being viewed. In addition to its core messaging service, Snap offers a suite of augmented reality (AR) tools, including custom Lenses and Filters, that enable users and third-party developers to create interactive and immersive experiences. The company also provides advertising solutions that allow brands to engage audiences through Snap Ads, Sponsored Lenses and Discover content on the platform.

Founded in 2011 by Evan Spiegel and Bobby Murphy, Snap has continually focused on innovation in camera technology and AR.

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