Snap (NYSE:SNAP) Cut to "Hold" at Freedom Capital

Key Points

• Freedom Capital downgraded Snap from “strong-buy” to “hold,” adding to a broader analyst stance that is already cautious on the stock.
• Wall Street consensus is now “Hold”, with 22 analysts rating Snap a hold and the average price target sitting at $7.91.
• Snap’s latest quarter showed mixed results: revenue matched expectations at $1.53 billion and grew 12.2% year over year, but EPS came in at -$0.05 versus the expected $0.09 profit.

Snap (NYSE:SNAP - Get Free Report) was downgraded by equities research analysts at Freedom Capital from a "strong-buy" rating to a "hold" rating in a research report issued on Tuesday,Zacks.com reports.

Several other analysts have also issued reports on SNAP. Benchmark started coverage on shares of Snap in a research report on Monday, April 27th. They set a "buy" rating for the company. The Goldman Sachs Group cut their price target on shares of Snap from $8.00 to $7.00 and set a "neutral" rating for the company in a research report on Thursday, May 7th. Rosenblatt Securities restated a "neutral" rating and set a $6.40 price target on shares of Snap in a research report on Thursday, April 16th. Canaccord Genuity Group cut their price target on shares of Snap from $7.00 to $6.00 and set a "hold" rating for the company in a research report on Tuesday, April 14th. Finally, HSBC lowered shares of Snap from a "hold" rating to a "hold" rating in a research report on Monday, April 27th. One analyst has rated the stock with a Strong Buy rating, eleven have assigned a Buy rating, twenty-two have given a Hold rating and two have issued a Sell rating to the company's stock. According to data from MarketBeat.com, the company currently has a consensus rating of "Hold" and a consensus price target of $7.91.

Snap Stock Performance

NYSE SNAP opened at $5.61 on Tuesday. The company has a 50-day simple moving average of $5.18 and a two-hundred day simple moving average of $6.52. The company has a quick ratio of 3.56, a current ratio of 3.53 and a debt-to-equity ratio of 1.67. Snap has a 12-month low of $3.81 and a 12-month high of $10.41. The firm has a market cap of $9.47 billion, a price-to-earnings ratio of -23.35 and a beta of 1.05.

Snap (NYSE:SNAP - Get Free Report) last posted its quarterly 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). Snap had a negative net margin of 6.72% and a negative return on equity of 18.92%. The business had revenue of $1.53 billion for the quarter, compared to analysts' expectations of $1.53 billion. During the same quarter in the previous year, the company earned ($0.08) earnings per share. The business's quarterly revenue was up 12.2% on a year-over-year basis. On average, equities analysts forecast that Snap will post -0.12 EPS for the current year.

Insider Activity

In other news, General Counsel Zachary M. Briers sold 11,437 shares of the stock in a transaction dated Wednesday, April 15th. The shares were sold at an average price of $6.04, for a total transaction of $69,079.48. Following the completion of the sale, the general counsel directly owned 2,774,031 shares in the company, valued at approximately $16,755,147.24. This represents a 0.41% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, CFO Derek Andersen sold 92,956 shares of the stock in a transaction dated Monday, March 16th. The stock was sold at an average price of $4.59, for a total transaction of $426,668.04. Following the sale, the chief financial officer owned 3,799,661 shares of the company's stock, valued at approximately $17,440,443.99. This represents a 2.39% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last ninety days, insiders have sold 565,573 shares of company stock valued at $2,699,781. Company insiders own 22.68% of the company's stock.

Institutional Trading of Snap

Several institutional investors and hedge funds have recently bought and sold shares of the stock. Vanguard Group Inc. lifted its holdings in Snap by 0.6% in the fourth quarter. Vanguard Group Inc. now owns 101,251,557 shares of the company's stock worth $817,100,000 after buying an additional 641,271 shares during the period. Capital World Investors lifted its holdings in Snap by 1.4% in the fourth quarter. Capital World Investors now owns 88,452,006 shares of the company's stock worth $713,808,000 after buying an additional 1,179,543 shares during the period. Capital International Investors lifted its holdings in Snap by 0.3% in the third quarter. Capital International Investors now owns 37,780,205 shares of the company's stock worth $291,285,000 after buying an additional 95,989 shares during the period. Alyeska Investment Group L.P. purchased a new stake in Snap in the third quarter worth about $176,697,000. Finally, Geode Capital Management LLC lifted its holdings in Snap by 3.6% in the fourth quarter. Geode Capital Management LLC now owns 13,525,119 shares of the company's stock worth $108,711,000 after buying an additional 469,795 shares during the period. 47.52% of the stock is currently owned by hedge funds and other 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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