Snap Inc. (NYSE:SNAP) Given Average Recommendation of "Hold" by Brokerages

Key Points

• Snap currently has a consensus analyst rating of "Hold" from 35 research firms, with an average 12-month price target of about $7.91. The analyst breakdown includes 2 sells, 22 holds, 10 buys, and 1 strong buy.
• Recent broker updates were mixed: JPMorgan and Goldman Sachs both cut price targets and maintained cautious ratings, while Rothschild & Co Redburn upgraded the stock to buy and Benchmark initiated coverage with a buy rating.
• Snap reported quarterly earnings of -$0.05 per share, missing estimates, though revenue of $1.53 billion matched expectations and grew 12.2% year over year. Insiders have also been selling shares, including large sales by the general counsel and CTO.

Shares of Snap Inc. (NYSE:SNAP - Get Free Report) have received a consensus rating of "Hold" from the thirty-five research firms that are currently covering the stock, Marketbeat reports. Two research analysts have rated the stock with a sell rating, twenty-two have given a hold rating, ten have issued a buy rating and one has assigned a strong buy rating to the company. The average 12-month price target among analysts that have issued a report on the stock in the last year is $7.9056.

Several brokerages recently weighed in on SNAP. JPMorgan Chase & Co. lowered their price objective on Snap from $7.00 to $6.00 and set an "underweight" rating for the company in a research report on Thursday, May 7th. Rothschild & Co Redburn upgraded Snap from a "neutral" rating to a "buy" rating and set a $10.00 price objective for the company in a research report on Monday, April 27th. The Goldman Sachs Group lowered their price objective on Snap from $8.00 to $7.00 and set a "neutral" rating for the company in a research report on Thursday, May 7th. BNP Paribas Exane lowered Snap to a "neutral" rating in a research report on Monday, April 27th. Finally, Benchmark began coverage on Snap in a research report on Monday, April 27th. They issued a "buy" rating for the company.

Insider Buying and Selling

In related news, General Counsel Zachary M. Briers sold 129,493 shares of the stock in a transaction that occurred on Monday, May 18th. The stock was sold at an average price of $5.60, for a total value of $725,160.80. Following the completion of the transaction, the general counsel directly owned 2,644,538 shares in the company, valued at approximately $14,809,412.80. This represents a 4.67% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CTO Robert C. Murphy sold 2,000,000 shares of the stock in a transaction that occurred on Wednesday, May 13th. The stock was sold at an average price of $5.44, for a total value of $10,880,000.00. Following the completion of the transaction, the chief technology officer owned 47,012,324 shares of the company's stock, valued at $255,747,042.56. The trade was a 4.08% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 3,021,330 shares of company stock valued at $16,608,998 in the last ninety days.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently modified their holdings of SNAP. Empowered Funds LLC boosted its position in shares of Snap by 13.3% during the first quarter. Empowered Funds LLC now owns 40,393 shares of the company's stock worth $352,000 after buying an additional 4,754 shares during the period. Prudential Financial Inc. purchased a new position in shares of Snap during the second quarter worth $136,000. Investment Management Corp of Ontario boosted its position in shares of Snap by 104.0% during the second quarter. Investment Management Corp of Ontario now owns 61,513 shares of the company's stock worth $535,000 after buying an additional 31,357 shares during the period. Nebula Research & Development LLC purchased a new position in shares of Snap during the second quarter worth $1,675,000. Finally, The Manufacturers Life Insurance Company boosted its position in shares of Snap by 52.0% during the second quarter. The Manufacturers Life Insurance Company now owns 89,337 shares of the company's stock worth $776,000 after buying an additional 30,561 shares during the period. 47.52% of the stock is currently owned by hedge funds and other institutional investors.

Snap Price Performance

NYSE:SNAP opened at $5.58 on Wednesday. Snap has a one year low of $3.81 and a one year high of $10.41. The company has a debt-to-equity ratio of 1.67, a quick ratio of 3.53 and a current ratio of 3.53. The stock has a market cap of $9.42 billion, a PE ratio of -23.23 and a beta of 1.03. The stock has a 50 day moving average price of $5.56 and a 200 day moving average price of $6.20.

Snap (NYSE:SNAP - Get Free Report) last posted its quarterly earnings results on Wednesday, May 6th. The company reported ($0.05) EPS for the quarter, missing the consensus estimate of $0.09 by ($0.14). The company had revenue of $1.53 billion during the quarter, compared to analyst estimates of $1.53 billion. Snap had a negative net margin of 6.72% and a negative return on equity of 18.92%. Snap'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 business posted ($0.08) EPS. Equities research analysts expect that Snap will post -0.06 EPS for the current fiscal 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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