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

Key Points

• Snap has a consensus analyst rating of "Hold" from 35 brokerages, with an average 12-month price target of about $7.79. The ratings are mixed, including two sell ratings, 23 holds, nine buys, and one strong buy.
• The company’s recent earnings were weak: Snap reported ($0.05) EPS, missing estimates, while revenue of $1.53 billion matched expectations. Revenue still rose 12.2% year over year, but profitability remains negative.
• Insider and institutional activity has been active, with executives recently selling shares and hedge funds increasing positions. Notably, large investors such as Alyeska and AQR added to Snap, and 47.52% of the stock is owned by institutional investors.

Shares of Snap Inc. (NYSE:SNAP - Get Free Report) have received a consensus rating of "Hold" from the thirty-five brokerages that are currently covering the company, MarketBeat Ratings reports. Two investment analysts have rated the stock with a sell rating, twenty-three have issued a hold rating, nine have assigned a buy rating and one has given a strong buy rating to the company. The average 12 month price objective among brokerages that have covered the stock in the last year is $7.7944.

A number of equities research analysts recently weighed in on the stock. Weiss Ratings reissued a "sell (e+)" rating on shares of Snap in a research report on Monday, April 20th. JPMorgan Chase & Co. cut their target price on Snap from $7.00 to $6.00 and set an "underweight" rating on the stock in a research report on Thursday, May 7th. Freedom Capital downgraded Snap from a "strong-buy" rating to a "hold" rating in a report on Tuesday, May 12th. Guggenheim reissued a "neutral" rating and issued a $6.50 target price on shares of Snap in a report on Thursday, April 16th. Finally, Sanford C. Bernstein downgraded Snap from a "market perform" rating to a "market perform" rating in a research note on Monday, April 27th.

Insider Buying and Selling

In other news, General Counsel Zachary M. Briers sold 11,958 shares of the stock in a transaction that occurred on Thursday, June 4th. The stock was sold at an average price of $6.00, for a total value of $71,748.00. Following the completion of the sale, the general counsel directly owned 2,560,835 shares of the company's stock, valued at approximately $15,365,010. This represents a 0.46% 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 this hyperlink. Also, CAO Rebecca Morrow sold 16,729 shares of the firm's stock in a transaction that occurred on Monday, May 18th. The stock was sold at an average price of $5.60, for a total transaction of $93,682.40. Following the transaction, the chief accounting officer owned 512,811 shares in the company, valued at approximately $2,871,741.60. This trade represents a 3.16% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold 2,907,554 shares of company stock valued at $16,093,619 in the last 90 days. Company insiders own 22.68% of the company's stock.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently bought and sold shares of SNAP. Alyeska Investment Group L.P. purchased a new position in Snap in the 3rd quarter valued at $176,697,000. AQR Capital Management LLC raised its position in Snap by 874.3% during the 4th quarter. AQR Capital Management LLC now owns 10,066,852 shares of the company's stock worth $81,239,000 after buying an additional 9,033,644 shares during the last quarter. Empyrean Capital Partners LP purchased a new position in Snap during the 1st quarter worth $25,300,000. Junto Capital Management LP acquired a new stake in shares of Snap in the 3rd quarter worth $29,071,000. Finally, Voloridge Investment Management LLC lifted its stake in shares of Snap by 53.3% in the 3rd quarter. Voloridge Investment Management LLC now owns 10,300,911 shares of the company's stock worth $79,420,000 after acquiring an additional 3,582,223 shares during the period. 47.52% of the stock is owned by hedge funds and other institutional investors.

Snap Stock Down 0.1%

SNAP stock opened at $4.83 on Friday. The stock has a market cap of $8.16 billion, a P/E ratio of -20.14 and a beta of 1.05. The company has a current ratio of 3.53, a quick ratio of 3.53 and a debt-to-equity ratio of 1.67. Snap has a twelve month low of $3.81 and a twelve month high of $10.41. The company's 50 day moving average is $5.43 and its two-hundred day moving average is $5.85.

Snap (NYSE:SNAP - Get Free Report) last issued its 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 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%. The company's quarterly revenue was up 12.2% on a year-over-year basis. During the same quarter in the previous year, the company posted ($0.08) EPS. Research analysts expect that Snap will post -0.07 earnings per share for the current fiscal year.

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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