Rosenblatt Securities Reiterates "Neutral" Rating for Snap (NYSE:SNAP)

Key Points

• Rosenblatt Securities reissued a "neutral" rating on Snap with a $6.40 price target, implying roughly a 6.1% upside from the stock's current level.
• Snap missed quarterly EPS (reported $0.03 vs. $0.15 expected) while revenue rose to $1.72B (+10.2% YoY); the stock carries a MarketBeat consensus of "Hold" with an average price target of $8.17.
• Management announced ~1,000 layoffs targeting about $500M in annual savings but expects $95–$130M in one‑time charges, amid notable insider selling and an investor investigation that create near‑term legal and financial uncertainty.

Snap (NYSE:SNAP - Get Free Report)'s stock had its "neutral" rating reissued by research analysts at Rosenblatt Securities in a note issued to investors on Thursday,Benzinga reports. They currently have a $6.40 target price on the stock. Rosenblatt Securities' price objective points to a potential upside of 6.05% from the stock's current price.

A number of other equities analysts have also recently issued reports on the company. B. Riley Financial upgraded Snap from a "neutral" rating to a "buy" rating and set a $10.00 target price for the company in a report on Thursday, February 5th. Mizuho lowered their target price on Snap from $9.00 to $7.00 and set a "neutral" rating for the company in a report on Thursday, February 5th. Morgan Stanley lowered their target price on Snap from $9.50 to $6.50 and set an "equal weight" rating for the company in a report on Sunday, February 22nd. Stifel Nicolaus set a $5.50 target price on Snap and gave the stock a "hold" rating in a report on Thursday, February 5th. Finally, Roth Mkm set a $7.00 target price on Snap in a report on Thursday, February 5th. One equities research 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 given a Sell rating to the company. Based on data from MarketBeat, the stock currently has a consensus rating of "Hold" and an average price target of $8.17.

Snap Price Performance

SNAP opened at $6.04 on Thursday. The company has a fifty day simple moving average of $4.88 and a 200 day simple moving average of $6.80. The stock has a market cap of $10.19 billion, a P/E ratio of -22.35 and a beta of 0.91. The company has a quick ratio of 3.56, a current ratio of 3.56 and a debt-to-equity ratio of 1.53. Snap has a 12 month low of $3.81 and a 12 month high of $10.41.

Snap (NYSE:SNAP - Get Free Report) last released its earnings results on Wednesday, February 4th. The company reported $0.03 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.15 by ($0.12). The firm had revenue of $1.72 billion for the quarter, compared to the consensus estimate 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 last year, the company posted $0.01 EPS. On average, research analysts expect that Snap will post -0.3 EPS for the current year.

Insider Buying and Selling

In other news, insider Ajit Mohan sold 119,339 shares of the firm'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 $560,893.30. Following the completion of the transaction, the insider owned 5,158,477 shares in the company, valued at $24,244,841.90. This trade represents a 2.26% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, General Counsel Zachary M. Briers sold 134,705 shares of the firm's stock in a transaction dated Tuesday, February 17th. The shares were sold at an average price of $4.70, for a total value of $633,113.50. Following the completion of the transaction, the general counsel owned 2,854,088 shares of the company's stock, valued at $13,414,213.60. The trade was a 4.51% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold 2,546,926 shares of company stock worth $13,250,655 over the last three months. Company insiders own 22.68% of the company's stock.

Institutional Investors Weigh In On Snap

Several hedge funds have recently bought and sold shares of the company. Corient Private Wealth LLC lifted its stake in Snap by 14.2% in the 4th quarter. Corient Private Wealth LLC now owns 56,092 shares of the company's stock valued at $453,000 after purchasing an additional 6,956 shares during the last quarter. Tobam lifted its stake in Snap by 953.3% in the 4th quarter. Tobam now owns 47,305 shares of the company's stock valued at $382,000 after purchasing an additional 42,814 shares during the last quarter. Alpine Global Management LLC acquired a new stake in Snap in the 4th quarter valued at about $185,000. SB Capital Management Inc acquired a new stake in Snap in the 4th quarter valued at about $596,000. Finally, Alberta Investment Management Corp acquired a new stake in Snap in the 4th quarter valued at about $1,434,000. 47.52% of the stock is currently owned by institutional investors and hedge funds.

Snap News Summary

Here are the key news stories impacting Snap this week:

• Positive Sentiment: Snap announced layoffs of about 1,000 employees (≈16% of workforce) and plans to close >300 open roles, targeting roughly $500M in annual cost savings — investors interpreted this as a decisive path to profitability, sending shares higher. Snap Jumps 7%: Slashing 1,000 Jobs and $500M in Costs
• Positive Sentiment: Roth Capital flagged SNAP as a positive tactical trade and outlets highlighted Snap’s AI/AR positioning and ~946M monthly users, which supports a narrative of durable upside if ad recovery and AI monetization accelerate. Is Snap Inc. Really Worth It After Roth Capital Names It A Positive Tactical Trade?
• Positive Sentiment: Unusually large call-option buying was reported (big increase versus typical volume), suggesting speculative bullish positioning that can amplify short-term upside. Options volume note
• Neutral Sentiment: Some outlets (Zacks) noted the recent surge on volume but warned that the trend in earnings estimate revisions doesn’t guarantee continued price gains; momentum may be short-lived absent revenue/earnings beats. Snap (SNAP) Surges 7.9%
• Neutral Sentiment: Regulatory filings show local WARN notices (95 jobs in Washington) and an updated Q1 revenue guide that was reported ambiguously; guidance impact is unclear until management clarifies figures. Snap cuts 95 jobs in Washington
• Negative Sentiment: Layoffs will incur $95M–$130M in severance and related charges; those one-time costs weigh on near-term results even if they improve long-term margins. Snapchat owner cuts 16% of global staff
• Negative Sentiment: Pomerantz law firm opened an investor investigation — any shareholder litigation or regulatory scrutiny could create legal/financial uncertainty. Investor alert: Pomerantz investigates Snap

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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