Invenomic Capital Management LP Has $6.75 Million Holdings in Snap Inc. $SNAP

Key Points

• Invenomic Capital Management cut its Snap stake by 46.9% in the fourth quarter, leaving it with 836,693 shares valued at about $6.75 million.
• Snap’s latest quarterly results showed EPS of -$0.05, missing estimates, while revenue came in at $1.53 billion and rose 12.2% year over year.
• Wall Street remains cautious on SNAP: analysts have a consensus Hold rating and a $7.79 average price target, even as the stock traded at $4.71 and insiders continued selling shares.

Invenomic Capital Management LP cut its holdings in Snap Inc. (NYSE:SNAP - Free Report) by 46.9% during the 4th quarter, according to its most recent disclosure with the SEC. The institutional investor owned 836,693 shares of the company's stock after selling 738,940 shares during the period. Invenomic Capital Management LP's holdings in Snap were worth $6,752,000 as of its most recent filing with the SEC.

Other institutional investors and hedge funds have also modified their holdings of the company. Allworth Financial LP grew its stake in shares of Snap by 92.3% in the third 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 in the last quarter. Oak Harvest Investment Services acquired a new position in shares of Snap in the fourth quarter valued at about $26,000. Arax Advisory Partners grew its stake in shares of Snap by 220.0% in the fourth quarter. Arax Advisory Partners now owns 3,309 shares of the company's stock valued at $27,000 after acquiring an additional 2,275 shares in the last quarter. V Square Quantitative Management LLC acquired a new position in shares of Snap in the fourth quarter valued at about $29,000. Finally, EverSource Wealth Advisors LLC grew its stake 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 acquiring an additional 3,071 shares in the last quarter. 47.52% of the stock is currently owned by institutional investors and hedge funds.

Wall Street Analysts Forecast Growth

SNAP has been the topic of several research reports. Truist Financial set a $8.00 price target on shares of Snap in a research note on Wednesday. TD Cowen initiated coverage on shares of Snap in a research report on Monday, April 27th. They set a "buy" rating for the company. Morgan Stanley cut their price objective on shares of Snap from $9.50 to $6.50 and set an "equal weight" rating for the company in a research report on Sunday, February 22nd. BMO Capital Markets upped their price objective on shares of Snap from $13.00 to $15.00 and gave the stock an "outperform" rating in a research report on Wednesday, April 15th. Finally, Piper Sandler reaffirmed a "neutral" rating on shares of Snap in a report on Wednesday. One investment analyst has rated the stock with a Strong Buy rating, nine have given a Buy rating, twenty-three have given a Hold rating and two have assigned a Sell rating to the company. According to data from MarketBeat, the company has a consensus rating of "Hold" and a consensus target price of $7.79.

Snap Stock Performance

NYSE SNAP opened at $4.71 on Thursday. The company has a current ratio of 3.53, a quick ratio of 3.53 and a debt-to-equity ratio of 1.67. The firm has a market capitalization of $7.96 billion, a price-to-earnings ratio of -19.63 and a beta of 1.03. The firm's 50 day simple moving average is $5.64 and its 200 day simple moving average is $6.10. Snap Inc. has a 1 year low of $3.81 and a 1 year high of $10.41.

Snap (NYSE:SNAP - Get Free Report) last posted its quarterly earnings results 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 was up 12.2% on a year-over-year basis. During the same quarter in the prior year, the business posted ($0.08) EPS. As a group, research analysts expect that Snap Inc. will post -0.06 earnings per share for the current fiscal year.

Insider Transactions at Snap

In other 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 completion of the transaction, the insider 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 ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, General Counsel Zachary M. Briers sold 129,493 shares of the stock in a transaction dated Monday, May 18th. The stock was sold at an average price of $5.60, for a total transaction of $725,160.80. Following the completion of the transaction, the general counsel directly owned 2,644,538 shares of the company's stock, valued at $14,809,412.80. This trade represents a 4.67% decrease in their position. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last three months, insiders have sold 2,900,631 shares of company stock valued at $16,054,989. 22.68% of the stock is owned by company insiders.

Key Snap News

Here are the key news stories impacting Snap this week:

• Negative Sentiment: Snap’s debut of Specs sparked selling as investors balked at the $2,195 price and questioned whether consumers will pay up for the company’s first standalone AR glasses. After unveiling ridiculously expensive AR glasses, Snap's stock takes a dive
• Neutral Sentiment: Management is framing Specs as a long-term bet on life beyond smartphones, which could support the stock over time if the product gains traction, but near-term investor reaction has been cautious. Snap CEO Spiegel defends Specs as long-term bet, pushes back against activist pressure
• Positive Sentiment: Snap has been making other strategic moves in AR and finance, including an Illumix acquisition and a debt upgrade, which may improve the company’s longer-term risk profile. Snap’s AR Push And Debt Upgrade Reframe Valuation And Risk Profile
• Neutral Sentiment: Separately, Snap has introduced new safeguards for younger users, a policy update that may help with platform trust but is unlikely to be a major immediate stock catalyst. SNAP Introduces New Safeguards for Younger Users

Snap 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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