Snap (NYSE:SNAP) Stock Breaks Below Fifty Day Moving Average - Time to Sell?

Key Points

• Snap shares fell below their 50-day moving average, trading as low as $5.61 versus the $5.75 average, with about 45 million shares changing hands.
• Analysts remain cautious: Snap has an overall “Hold” consensus rating and a $7.68 average price target, despite recent quarterly revenue of $1.60 billion exceeding estimates and an adjusted loss that was narrower than expected.
• Insiders sold approximately 2.45 million shares worth $13.4 million over the past three months, while institutional investors and hedge funds own 47.52% of the company.

Snap Inc. (NYSE:SNAP - Get Free Report) shares crossed below its 50-day moving average during trading on Thursday. The stock has a 50-day moving average of $5.75 and traded as low as $5.61. Snap shares last traded at $5.6550, with a volume of 45,007,387 shares changing hands.

Analyst Ratings Changes

SNAP has been the topic of several recent analyst reports. Guggenheim reissued a "neutral" rating on shares of Snap in a research note on Wednesday, September 2nd. Benchmark restated a "hold" rating on shares of Snap in a research note on Tuesday, August 4th. Wall Street Zen lowered Snap from a "buy" rating to a "hold" rating in a research note on Saturday, September 12th. Wells Fargo & Company lifted their target price on shares of Snap from $5.00 to $6.00 and gave the company an "equal weight" rating in a research report on Tuesday, August 4th. Finally, Citizens Jmp reaffirmed a "market perform" rating on shares of Snap in a research note on Tuesday, August 4th. One research analyst has rated the stock with a Strong Buy rating, ten have issued a Buy rating, twenty-two have issued a Hold rating and two have given a Sell rating to the company. According to MarketBeat, the company currently has an average rating of "Hold" and a consensus target price of $7.68.

Snap Stock Performance

The company has a market cap of $9.56 billion, a price-to-earnings ratio of -31.41 and a beta of 1.07. The firm has a 50 day simple moving average of $5.75 and a 200-day simple moving average of $5.47. The company has a debt-to-equity ratio of 1.75, a current ratio of 2.94 and a quick ratio of 2.94.

Snap (NYSE:SNAP - Get Free Report) last announced its earnings results on Monday, August 3rd. The company reported ($0.10) earnings per share for the quarter, topping the consensus estimate of ($0.12) by $0.02. The company had revenue of $1.60 billion during the quarter, compared to analyst estimates of $1.54 billion. Snap had a negative net margin of 4.90% and a negative return on equity of 14.61%. Snap's revenue was up 18.9% compared to the same quarter last year. During the same quarter last year, the firm posted ($0.16) earnings per share. As a group, analysts predict that Snap Inc. will post -0.03 EPS for the current fiscal year.

Insider Transactions at Snap

In related news, CTO Robert Murphy sold 2,000,000 shares of Snap stock in a transaction that occurred on Wednesday, August 5th. The shares were sold at an average price of $5.55, for a total value of $11,100,000.00. Following the completion of the sale, the chief technology officer owned 41,809,791 shares in the company, valued at approximately $232,044,340.05. This trade represents a 4.57% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, insider Ajit Mohan sold 6,797 shares of the business's stock in a transaction that occurred on Wednesday, September 16th. The shares were sold at an average price of $5.82, for a total value of $39,558.54. Following the completion of the sale, the insider directly owned 4,965,300 shares in the company, valued at approximately $28,898,046. The trade was a 0.14% 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. Insiders have sold 2,445,926 shares of company stock worth $13,426,930 in the last three months. Company insiders own 22.68% of the company's stock.

Hedge Funds Weigh In On Snap

Several hedge funds have recently bought and sold shares of the company. Mirae Asset Global Investments Co. Ltd. acquired a new position in shares of Snap in the third quarter valued at approximately $355,000. Asset Management One Co. Ltd. purchased a new stake in Snap during the 3rd quarter worth approximately $2,104,000. Oppenheimer & Co. Inc. increased its stake in Snap by 74.0% during the 3rd quarter. Oppenheimer & Co. Inc. now owns 25,008 shares of the company's stock worth $135,000 after buying an additional 10,635 shares during the period. Davidson Kahn Capital Management LLC lifted its holdings in Snap by 31.7% during the 3rd quarter. Davidson Kahn Capital Management LLC now owns 17,261 shares of the company's stock worth $93,000 after buying an additional 4,159 shares in the last quarter. Finally, Signaturefd LLC lifted its holdings in Snap by 68.9% during the 3rd quarter. Signaturefd LLC now owns 5,211 shares of the company's stock worth $28,000 after buying an additional 2,126 shares in the last quarter. Institutional investors and hedge funds own 47.52% of the company's stock.

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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