Snap Inc. (NYSE:SNAP) Given Consensus Recommendation of "Hold" by Analysts

Key Points

• Analysts maintain a consensus “Hold” rating on Snap, with 25 holds, eight buys, two sells and one strong buy. The average 12-month price target is $7.23, above the stock’s reported $4.74 opening price.
• Snap’s shares have declined 0.6% and remain below their 50-day and 200-day moving averages, with a 52-week range of $3.81 to $9.77 and an $8.01 billion market capitalization.
• The company reported quarterly revenue of $1.53 billion, up 12.2% year over year and in line with estimates, but its $0.05 loss per share missed the expected $0.09 profit. Insiders sold approximately 2.87 million shares worth $15.9 million over the past 90 days.

Snap Inc. (NYSE:SNAP - Get Free Report) has been assigned an average rating of "Hold" from the thirty-six analysts that are covering the firm, Marketbeat Ratings reports. Two research analysts have rated the stock with a sell recommendation, twenty-five have assigned a hold recommendation, eight have issued a buy recommendation and one has given a strong buy recommendation to the company. The average 1 year target price among brokerages that have updated their coverage on the stock in the last year is $7.2304.

A number of brokerages have issued reports on SNAP. Rothschild & Co Redburn raised Snap from a "neutral" rating to a "buy" rating and set a $10.00 target price for the company in a report on Monday, April 27th. Wells Fargo & Company cut their price target on Snap from $7.00 to $5.00 and set an "equal weight" rating on the stock in a research note on Tuesday, July 7th. Truist Financial set a $8.00 price target on Snap in a report on Wednesday, June 17th. Tigress Financial assumed coverage on Snap in a research note on Monday, April 27th. They issued a "buy" rating for the company. Finally, The Goldman Sachs Group dropped their price objective on shares of Snap from $7.00 to $6.00 and set a "neutral" rating for the company in a report on Wednesday, July 8th.

Snap Stock Down 0.6%

Shares of NYSE:SNAP opened at $4.74 on Thursday. The company has a fifty day moving average of $5.01 and a 200-day moving average of $5.41. The company has a market capitalization of $8.01 billion, a PE ratio of -19.75 and a beta of 1.05. The company has a debt-to-equity ratio of 1.67, a quick ratio of 3.53 and a current ratio of 3.53. Snap has a 52-week low of $3.81 and a 52-week high of $9.77.

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

Insider Transactions at Snap

In other news, General Counsel Zachary M. Briers sold 129,493 shares of the firm's stock in a transaction on Monday, May 18th. The shares were 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 owned 2,644,538 shares of the company's stock, valued at approximately $14,809,412.80. This trade represents a 4.67% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. 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 firm's stock in a transaction on Wednesday, May 13th. The shares were sold at an average price of $5.44, for a total transaction of $10,880,000.00. Following the transaction, the chief technology officer directly 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 position. Additional details regarding this sale are available in the official SEC disclosure. In the last 90 days, insiders sold 2,868,059 shares of company stock worth $15,855,631. 22.68% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of the stock. Handelsbanken Fonder AB raised its position in Snap by 21.2% during the 2nd quarter. Handelsbanken Fonder AB now owns 352,900 shares of the company's stock worth $1,567,000 after purchasing an additional 61,700 shares during the last quarter. Gradient Investments LLC grew its position in shares of Snap by 7.1% in the 2nd quarter. Gradient Investments LLC now owns 188,827 shares of the company's stock valued at $838,000 after buying an additional 12,492 shares during the last quarter. Assenagon Asset Management S.A. increased its stake in shares of Snap by 1,191.8% in the second quarter. Assenagon Asset Management S.A. now owns 3,903,141 shares of the company's stock valued at $17,330,000 after buying an additional 3,601,002 shares during the period. Fermata Advisors LLC acquired a new stake in shares of Snap in the second quarter valued at about $75,000. Finally, Dynamic Advisor Solutions LLC bought a new position in shares of Snap during the second quarter worth about $47,000. 47.52% of the stock is owned by institutional investors.

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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