Empyrean Capital Partners LP Acquires Shares of 5,500,000 Snap Inc. $SNAP

Key Points

• Empyrean Capital Partners acquired 5.5 million Snap shares worth approximately $25.3 million, representing about 0.33% of the company. Institutional investors collectively own 47.52% of Snap.
• Analysts maintain a generally cautious outlook, with Snap carrying an average “Hold” rating and a $7.23 price target. Recent target changes ranged from $5 to $15.
• Snap shares opened at $4.53, near the lower end of their 52-week range, after the company missed quarterly EPS expectations despite 12.2% year-over-year revenue growth. Insiders sold 2.87 million shares worth $15.9 million over the last quarter, primarily to cover tax obligations.

Empyrean Capital Partners LP bought a new stake in Snap Inc. (NYSE:SNAP - Free Report) in the first quarter, according to its most recent disclosure with the Securities & Exchange Commission. The institutional investor bought 5,500,000 shares of the company's stock, valued at approximately $25,300,000. Empyrean Capital Partners LP owned about 0.33% of Snap as of its most recent filing with the Securities & Exchange Commission.

Several other hedge funds have also made changes to their positions in the business. Allworth Financial LP raised its stake in Snap by 92.3% during the 3rd quarter. Allworth Financial LP now owns 3,293 shares of the company's stock valued at $25,000 after acquiring an additional 1,581 shares during the last quarter. Oak Harvest Investment Services purchased a new position in shares of Snap in the 4th quarter valued at approximately $26,000. Arax Advisory Partners grew its stake in shares of Snap by 220.0% in the 4th quarter. Arax Advisory Partners now owns 3,309 shares of the company's stock valued at $27,000 after purchasing an additional 2,275 shares during the last quarter. V Square Quantitative Management LLC acquired a new position in shares of Snap in the fourth quarter valued at approximately $29,000. Finally, EverSource Wealth Advisors LLC increased its holdings in shares of Snap by 561.4% in the fourth quarter. EverSource Wealth Advisors LLC now owns 3,618 shares of the company's stock valued at $29,000 after purchasing an additional 3,071 shares during the period. Institutional investors and hedge funds own 47.52% of the company's stock.

Analyst Ratings Changes

Several equities research analysts recently weighed in on the company. BMO Capital Markets increased their price target on Snap from $13.00 to $15.00 and gave the stock an "outperform" rating in a report on Wednesday, April 15th. Mizuho dropped their price objective on shares of Snap from $6.00 to $5.00 and set a "neutral" rating on the stock in a research note on Wednesday, July 22nd. DA Davidson assumed coverage on shares of Snap in a research report on Wednesday, July 8th. They set a "neutral" rating and a $5.00 price objective for the company. Barclays upgraded shares of Snap from an "overweight" rating to an "overweight" rating in a research note on Monday, April 27th. Finally, Canaccord Genuity Group lowered their target price on shares of Snap from $7.00 to $6.00 and set a "hold" rating on the stock in a report on Tuesday, April 14th. One equities research analyst has rated the stock with a Strong Buy rating, eight have given a Buy rating, twenty-five have given a Hold rating and two have assigned a Sell rating to the stock. Based on data from MarketBeat.com, Snap presently has an average rating of "Hold" and an average target price of $7.23.

Insiders Place Their Bets

In related news, insider Ajit Mohan sold 44,785 shares of the stock in a transaction dated Monday, May 18th. The shares were sold at an average price of $5.60, for a total value of $250,796.00. Following the sale, the insider directly owned 5,057,891 shares of the company's stock, valued at approximately $28,324,189.60. This represents a 0.88% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CAO Rebecca Morrow sold 16,729 shares of the firm's stock in a transaction dated Monday, May 18th. The shares were sold at an average price of $5.60, for a total transaction of $93,682.40. Following the transaction, the chief accounting officer owned 512,811 shares of the company's stock, valued at $2,871,741.60. This trade represents a 3.16% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last quarter, insiders have sold 2,868,059 shares of company stock valued at $15,855,631. Company insiders own 22.68% of the company's stock.

Snap Stock Performance

SNAP opened at $4.53 on Tuesday. The stock has a market cap of $7.64 billion, a P/E ratio of -18.85 and a beta of 1.05. The company has a debt-to-equity ratio of 1.67, a current ratio of 3.53 and a quick ratio of 3.53. The stock's 50 day simple moving average is $5.04 and its 200 day simple moving average is $5.47. Snap Inc. has a 1-year low of $3.81 and a 1-year high of $9.90.

Snap (NYSE:SNAP - Get Free Report) last issued its quarterly earnings data on Wednesday, May 6th. The company reported ($0.05) earnings per share (EPS) for the quarter, missing the consensus estimate of $0.09 by ($0.14). The firm had revenue of $1.53 billion for the quarter, compared to analyst estimates of $1.53 billion. Snap had a negative return on equity of 18.92% and a negative net margin of 6.72%.The business's revenue for the quarter was up 12.2% compared to the same quarter last year. During the same period in the prior year, the firm posted ($0.08) earnings per share. As a group, equities analysts anticipate that Snap Inc. will post -0.07 EPS for the current fiscal year.

About Snap

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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