Snap (NYSE:SNAP) Coverage Initiated by Analysts at DA Davidson

Key Points

• DA Davidson initiated coverage on Snap with a neutral rating and a $5.00 price target, implying about 7.64% upside from the prior close.
• Other analysts are mixed but mostly cautious: Snap’s overall consensus rating is Hold, with an average price target of $7.48.
• Snap recently reported quarterly earnings of -$0.05 per share, missing estimates, while revenue came in at $1.53 billion, matching expectations and rising 12.2% year over year.

Analysts at DA Davidson initiated coverage on shares of Snap (NYSE:SNAP - Get Free Report) in a report released on Wednesday,Benzinga reports. The brokerage set a "neutral" rating and a $5.00 price target on the stock. DA Davidson's target price points to a potential upside of 7.64% from the stock's previous close.

Several other brokerages have also recently commented on SNAP. The Goldman Sachs Group lowered their price target on shares of Snap from $7.00 to $6.00 and set a "neutral" rating for the company in a research report on Wednesday. BNP Paribas Exane cut shares of Snap to a "neutral" rating in a research note on Monday, April 27th. Canaccord Genuity Group lowered their target price on shares of Snap from $7.00 to $6.00 and set a "hold" rating for the company in a report on Tuesday, April 14th. BMO Capital Markets upped their target price on shares of Snap from $13.00 to $15.00 and gave the company an "outperform" rating in a research report on Wednesday, April 15th. Finally, Rosenblatt Securities reissued a "neutral" rating and issued a $6.40 price target on shares of Snap in a research note on Thursday, April 16th. One analyst has rated the stock with a Strong Buy rating, nine have assigned a Buy rating, twenty-four have given a Hold rating and two have issued a Sell rating to the stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of "Hold" and an average price target of $7.48.

Snap Price Performance

Snap stock opened at $4.64 on Wednesday. The business's 50-day simple moving average is $5.39 and its 200 day simple moving average is $5.80. The company has a quick ratio of 3.53, a current ratio of 3.53 and a debt-to-equity ratio of 1.67. The stock has a market cap of $7.85 billion, a price-to-earnings ratio of -19.35 and a beta of 1.05. Snap has a 12-month low of $3.81 and a 12-month high of $10.41.

Snap (NYSE:SNAP - Get Free Report) last announced its quarterly earnings data on Wednesday, May 6th. The company reported ($0.05) earnings per share for the quarter, missing the consensus estimate of $0.09 by ($0.14). Snap had a negative return on equity of 18.92% and a negative net margin of 6.72%.The firm had revenue of $1.53 billion for the quarter, compared to the consensus estimate of $1.53 billion. During the same period in the prior year, the firm posted ($0.08) earnings per share. The business's revenue for the quarter was up 12.2% compared to the same quarter last year. As a group, research analysts anticipate that Snap will post -0.07 earnings per share for the current year.

Insider Buying and Selling at Snap

In other Snap news, insider Ajit Mohan sold 6,923 shares of Snap stock in a transaction dated Tuesday, June 16th. The stock was sold at an average price of $5.58, for a total transaction of $38,630.34. Following the transaction, the insider directly owned 5,050,968 shares in the company, valued at approximately $28,184,401.44. The trade was a 0.14% decrease in their ownership of the stock. The transaction 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, CFO Douglas Hott sold 114,702 shares of the business's stock in a transaction dated Tuesday, May 19th. The shares were sold at an average price of $5.67, for a total value of $650,360.34. Following the completion of the transaction, the chief financial officer directly owned 2,456,447 shares of the company's stock, valued at approximately $13,928,054.49. The trade was a 4.46% 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 a total of 2,907,554 shares of company stock worth $16,093,619 in the last three months.

Institutional Trading of Snap

A number of large investors have recently bought and sold shares of the business. Allworth Financial LP boosted its holdings in shares of Snap by 92.3% in the third quarter. Allworth Financial LP now owns 3,293 shares of the company's stock valued at $25,000 after buying an additional 1,581 shares during the period. Oak Harvest Investment Services acquired a new stake in shares of Snap during the fourth quarter worth $26,000. Arax Advisory Partners lifted its position in Snap by 220.0% in the 4th quarter. Arax Advisory Partners now owns 3,309 shares of the company's stock valued at $27,000 after acquiring an additional 2,275 shares in the last quarter. V Square Quantitative Management LLC bought a new stake in Snap in the 4th quarter valued at $29,000. Finally, EverSource Wealth Advisors LLC boosted its stake in Snap by 561.4% in the 4th quarter. EverSource Wealth Advisors LLC now owns 3,618 shares of the company's stock worth $29,000 after purchasing an additional 3,071 shares during the period. 47.52% of the stock is owned by institutional investors.

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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