Snap (NYSE:SNAP) Hits New 1-Year Low - Here's What Happened

Key Points

• Snap Inc. shares reached a new 52-week low of $6.91 during trading, closing slightly higher at $7.02.
• Several brokerages have updated their ratings on Snap, with Wells Fargo raising its price target from $8.00 to $11.00, while Piper Sandler lowered their target from $10.00 to $9.00.
• Insider selling has been notable, with a director selling 7,900 shares at an average price of $7.07, indicating a decrease in their position.

Snap Inc. (NYSE:SNAP - Get Free Report) shares reached a new 52-week low during mid-day trading on Tuesday . The company traded as low as $6.91 and last traded at $7.02, with a volume of 3019724 shares changing hands. The stock had previously closed at $7.14.

Analyst Ratings Changes

Several brokerages have recently weighed in on SNAP. Wells Fargo & Company lifted their price objective on Snap from $8.00 to $11.00 and gave the stock an "equal weight" rating in a report on Tuesday, July 1st. Citizens Jmp restated a "market perform" rating on shares of Snap in a research report on Wednesday, August 6th. JMP Securities restated a "market perform" rating on shares of Snap in a research report on Wednesday, August 6th. Piper Sandler cut their price objective on Snap from $10.00 to $9.00 and set a "neutral" rating for the company in a research report on Wednesday, August 6th. Finally, TD Cowen lifted their price objective on Snap from $9.00 to $10.00 and gave the company a "hold" rating in a research report on Tuesday, July 15th. Five research analysts have rated the stock with a Buy rating, twenty-three have given a Hold rating and two have assigned a Sell rating to the company. According to data from MarketBeat, Snap has a consensus rating of "Hold" and an average target price of $34.16.

Snap Stock Down 2.5%

The firm has a market cap of $11.77 billion, a price-to-earnings ratio of -21.70 and a beta of 0.62. The company has a debt-to-equity ratio of 1.73, a current ratio of 3.88 and a quick ratio of 3.88. The stock has a 50-day moving average of $8.53 and a 200-day moving average of $8.66.

Snap (NYSE:SNAP - Get Free Report) last issued its earnings results on Tuesday, August 5th. The company reported ($0.16) earnings per share for the quarter, meeting analysts' consensus estimates of ($0.16). Snap had a negative return on equity of 23.32% and a negative net margin of 9.69%.The firm had revenue of $1.34 billion for the quarter, compared to the consensus estimate of $1.34 billion. During the same quarter last year, the business posted ($0.15) EPS. The company's revenue was up 8.7% compared to the same quarter last year. Snap has set its Q3 2025 guidance at EPS. Sell-side analysts predict that Snap Inc. will post -0.3 EPS for the current fiscal year.

Insider Buying and Selling

In related news, Director Elizabeth Jenkins sold 7,900 shares of Snap stock in a transaction that occurred on Thursday, August 28th. The shares were sold at an average price of $7.07, for a total value of $55,853.00. Following the sale, the director owned 65,663 shares of the company's stock, valued at approximately $464,237.41. The trade was a 10.74% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, CAO Rebecca Morrow sold 10,216 shares of the business's stock in a transaction on Monday, August 18th. The shares were sold at an average price of $7.17, for a total transaction of $73,248.72. Following the sale, the chief accounting officer directly owned 436,087 shares in the company, valued at $3,126,743.79. The trade was a 2.29% decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 1,510,644 shares of company stock worth $11,688,447 in the last three months.

Institutional Trading of Snap

A number of institutional investors have recently modified their holdings of the company. Centaurus Financial Inc. purchased a new stake in Snap in the second quarter worth about $208,000. Orion Porfolio Solutions LLC lifted its holdings in Snap by 8.3% in the second quarter. Orion Porfolio Solutions LLC now owns 18,913 shares of the company's stock worth $164,000 after buying an additional 1,451 shares during the period. State of Wyoming lifted its holdings in Snap by 36.7% in the second quarter. State of Wyoming now owns 45,582 shares of the company's stock worth $396,000 after buying an additional 12,239 shares during the period. Nikko Asset Management Americas Inc. increased its stake in shares of Snap by 94.1% during the second quarter. Nikko Asset Management Americas Inc. now owns 2,107,288 shares of the company's stock valued at $18,312,000 after purchasing an additional 1,021,677 shares in the last quarter. Finally, FORA Capital LLC bought a new position in shares of Snap during the second quarter valued at approximately $129,000. 47.52% of the stock is currently owned by hedge funds and other institutional investors.

Snap Company Profile

Snap Inc operates as a technology company in North America, Europe, and internationally. The company offers Snapchat, a visual messaging application with various tabs, such as camera, visual messaging, snap map, stories, and spotlight that enable people to communicate visually through short videos and images.

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