Snap (NYSE:SNAP) Hits New 12-Month Low - What's Next?

Key Points

• Snap hit a new 52-week low of $4.65 on Thursday with about 42.6 million shares traded, leaving the stock well below its 50-day ($6.35) and 200-day ($7.30) moving averages and a market cap around $7.9 billion.
• Wall Street is largely cautious — the consensus rating is Hold with a $8.17 average price target after recent cuts (e.g., Goldman to $8.50, Cantor to $7.00) and BNP Paribas initiating at "strong sell"; Snap also missed quarterly EPS ($0.03 vs. $0.15 est.) despite modest revenue growth to $1.72B.
• Insiders have been selling (2.53 million shares sold in the last three months, insiders own ~22.7%), while the company shows strong liquidity (quick ratio 3.56) but negative profitability (ROE -20.72%, negative net margin).

Snap Inc. (NYSE:SNAP - Get Free Report) reached a new 52-week low during trading on Thursday . The company traded as low as $4.65 and last traded at $4.6550, with a volume of 42570078 shares trading hands. The stock had previously closed at $4.86.

Wall Street Analyst Weigh In

A number of equities analysts have recently issued reports on SNAP shares. The Goldman Sachs Group lowered their price objective on Snap from $9.50 to $8.50 and set a "neutral" rating for the company in a research report on Tuesday, January 13th. BNP Paribas Exane assumed coverage on shares of Snap in a research report on Wednesday, January 14th. They set a "strong sell" rating for the company. Cantor Fitzgerald lowered their price target on shares of Snap from $9.00 to $7.00 and set a "neutral" rating for the company in a report on Thursday, February 5th. Weiss Ratings reaffirmed a "sell (e+)" rating on shares of Snap in a research note on Wednesday, January 21st. Finally, Stifel Nicolaus set a $5.50 price objective on shares of Snap and gave the stock a "hold" rating in a research report on Thursday, February 5th. One research analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating, twenty have given a Hold rating and three have issued a Sell rating to the stock. According to MarketBeat.com, the stock has an average rating of "Hold" and a consensus price target of $8.17.

Snap Stock Performance

The company has a quick ratio of 3.56, a current ratio of 3.56 and a debt-to-equity ratio of 1.53. The company has a 50 day simple moving average of $6.35 and a 200-day simple moving average of $7.30. The stock has a market capitalization of $7.86 billion, a price-to-earnings ratio of -17.24 and a beta of 0.83.

Snap (NYSE:SNAP - Get Free Report) last announced its quarterly earnings data on Wednesday, February 4th. The company reported $0.03 EPS for the quarter, missing the consensus estimate of $0.15 by ($0.12). The company had revenue of $1.72 billion for the quarter, compared to analyst estimates of $1.70 billion. Snap had a negative return on equity of 20.72% and a negative net margin of 7.76%.The business's quarterly revenue was up 10.2% compared to the same quarter last year. During the same period last year, the business earned $0.01 EPS. As a group, equities research analysts expect that Snap Inc. will post -0.3 EPS for the current fiscal year.

Insiders Place Their Bets

In other news, insider Ajit Mohan sold 119,339 shares of the firm's stock in a transaction dated Tuesday, February 17th. The stock was sold at an average price of $4.70, for a total value of $560,893.30. Following the completion of the sale, the insider directly owned 5,158,477 shares in the company, valued at $24,244,841.90. This trade represents a 2.26% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at this link. Also, CAO Rebecca Morrow sold 16,499 shares of the business's stock in a transaction dated Tuesday, February 17th. The shares were sold at an average price of $4.70, for a total value of $77,545.30. Following the completion of the sale, the chief accounting officer directly owned 466,682 shares of the company's stock, valued at $2,193,405.40. The trade was a 3.41% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last three months, insiders sold 2,526,487 shares of company stock valued at $13,435,587. 22.68% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Several institutional investors have recently bought and sold shares of the business. Allworth Financial LP grew its holdings in shares of Snap by 92.3% during 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 last quarter. Oak Harvest Investment Services acquired a new stake in shares of Snap in the 4th quarter worth about $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 acquired a new position in Snap during the 4th quarter valued at about $29,000. Finally, EverSource Wealth Advisors LLC boosted its stake in Snap by 561.4% during the 4th quarter. EverSource Wealth Advisors LLC now owns 3,618 shares of the company's stock valued at $29,000 after purchasing an additional 3,071 shares during the last quarter. Institutional investors and hedge funds own 47.52% of the company's stock.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.