Snap (NYSE:SNAP) Price Target Lowered to $8.00 at Royal Bank Of Canada

Key Points

• Royal Bank of Canada cut its price target on Snap from $10.00 to $8.00 and maintained a "sector perform" rating, a target that implies roughly a 34% upside from the current share price.
• Industry-wide coverage remains mixed: analysts' consensus is a "Hold" with an average price target of $7.94, amid multiple recent cuts (e.g., Morgan Stanley to $6.50, JPMorgan to $7.00) though some firms like KeyCorp have upgraded to overweight.
• In Q1 Snap missed EPS expectations (reported $(0.05) vs. $0.09 est.) while revenue of $1.53B was in line and up ~12% YoY; however, a cancelled ~$400M Perplexity deal and cautious Q2 guidance have added near‑term uncertainty despite returning DAU growth and improving adjusted EBITDA.

Snap (NYSE:SNAP - Get Free Report) had its price objective reduced by stock analysts at Royal Bank Of Canada from $10.00 to $8.00 in a research note issued to investors on Thursday,Benzinga reports. The brokerage currently has a "sector perform" rating on the stock. Royal Bank Of Canada's target price suggests a potential upside of 33.80% from the company's current price.

A number of other brokerages have also recently issued reports on SNAP. Morgan Stanley reduced their price objective on Snap from $9.50 to $6.50 and set an "equal weight" rating on the stock in a research note on Sunday, February 22nd. JPMorgan Chase & Co. decreased their target price on shares of Snap from $8.00 to $7.00 and set an "underweight" rating for the company in a research note on Thursday, February 5th. KeyCorp upgraded shares of Snap from a "sector weight" rating to an "overweight" rating in a research note on Monday, April 27th. Piper Sandler reiterated a "neutral" rating on shares of Snap in a research note on Thursday, February 5th. Finally, Guggenheim reiterated a "neutral" rating and set a $6.50 target price on shares of Snap in a research note on Thursday, April 16th. One analyst has rated the stock with a Strong Buy rating, eleven have assigned a Buy rating, twenty-one have assigned a Hold rating and two have issued a Sell rating to the company's stock. According to MarketBeat.com, the stock presently has a consensus rating of "Hold" and an average price target of $7.94.

Snap Stock Performance

Shares of SNAP stock traded down $0.13 during trading on Thursday, reaching $5.98. 62,052,120 shares of the company's stock traded hands, compared to its average volume of 53,287,512. Snap has a 1 year low of $3.81 and a 1 year high of $10.41. The company has a market capitalization of $10.10 billion, a P/E ratio of -22.20 and a beta of 1.05. The company has a current ratio of 3.56, a quick ratio of 3.56 and a debt-to-equity ratio of 1.53. The firm's 50-day moving average is $5.12 and its 200 day moving average is $6.59.

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 analysts' consensus estimates of $0.09 by ($0.14). The business had revenue of $1.53 billion for the quarter, compared to the consensus estimate of $1.53 billion. Snap had a negative net margin of 7.76% and a negative return on equity of 20.72%. The company's revenue was up 12.2% compared to the same quarter last year. During the same period in the previous year, the firm earned ($0.08) EPS. Equities research analysts expect that Snap will post -0.12 EPS for the current year.

Insider Transactions at Snap

In other news, insider Ajit Mohan sold 28,058 shares of the stock in a transaction on Thursday, April 16th. The shares were sold at an average price of $6.02, for a total value of $168,909.16. Following the sale, the insider owned 5,102,676 shares in the company, valued at $30,718,109.52. This represents a 0.55% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CFO Derek Andersen sold 92,956 shares of the stock in a transaction on Monday, March 16th. The stock was sold at an average price of $4.59, for a total transaction of $426,668.04. Following the completion of the sale, the chief financial officer owned 3,799,661 shares in the company, valued at $17,440,443.99. The trade was a 2.39% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last three months, insiders have sold 2,565,573 shares of company stock valued at $13,329,781. 22.68% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Snap

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Empowered Funds LLC lifted its stake in shares of Snap by 13.3% in the first quarter. Empowered Funds LLC now owns 40,393 shares of the company's stock worth $352,000 after buying an additional 4,754 shares in the last quarter. Prudential Financial Inc. purchased a new position in shares of Snap in the second quarter worth about $136,000. Investment Management Corp of Ontario lifted its stake in shares of Snap by 104.0% in the second quarter. Investment Management Corp of Ontario now owns 61,513 shares of the company's stock worth $535,000 after buying an additional 31,357 shares in the last quarter. Nebula Research & Development LLC purchased a new position in shares of Snap in the second quarter worth about $1,675,000. Finally, The Manufacturers Life Insurance Company lifted its stake in shares of Snap by 52.0% in the second quarter. The Manufacturers Life Insurance Company now owns 89,337 shares of the company's stock worth $776,000 after buying an additional 30,561 shares in the last quarter. 47.52% of the stock is owned by hedge funds and other institutional investors.

Key Snap News

Here are the key news stories impacting Snap this week:

• Positive Sentiment: Q1 revenue and profitability momentum — Revenue grew ~12% year‑over‑year and management reported a big jump in adjusted EBITDA, signaling improving operating leverage. SNAP's Q1 Revenues Climb Y/Y, Adjusted EBITDA More Than Doubles
• Positive Sentiment: Daily active users returned to growth, driven by markets outside North America/Europe — that user momentum supports ad revenue durability. Snap's quarterly revenue rises, daily active users return to growth
• Positive Sentiment: Analyst support — Wells Fargo raised its price target to $7 (equal weight), providing a modest buy‑side data point. Wells Fargo raises price target
• Neutral Sentiment: Third‑party partnerships/market ties — Qualcomm headlines referenced a Snap AR tie that could be strategically positive long term, but the article primarily lifted Qualcomm shares. Impact on SNAP is secondary. Qualcomm Climbs 8% as Buyback, Snap AR Partnership Power Pivot Beyond Smartphones
• Neutral Sentiment: Management departures/context — Former Snap CFO Derek Andersen was hired by Expedia; notable for industry mobility but not an immediate operational issue for Snap. How Investors Are Reacting To Expedia Group (EXPE) Hiring Snap Veteran Derek Andersen As CFO
• Negative Sentiment: Perplexity AI deal cancelled — Snap confirmed the amicable end of a previously announced ~$400M Perplexity integration, and the company excluded Perplexity upside from guidance; that directly removes a near‑term revenue catalyst. Snap says its $400M deal with Perplexity ‘amicably ended'
• Negative Sentiment: Cautious forward guidance — Management issued conservative Q2 revenue guidance that disappointed investors, increasing uncertainty about near‑term ad growth. Snap issues cautious guidance as Perplexity deal ends, Middle East 'geopolitical situation' causes uncertainty
• Negative Sentiment: Activist pressure — Randian Capital has launched an activist campaign pressing for asset reviews and board changes, which can increase near‑term volatility and strategic uncertainty. Randian Activist Push Puts Snap Specs Review And Valuation In Focus
• Negative Sentiment: Investor litigation probe — Pomerantz announced an investigation into Snap, adding legal overhang risk for shareholders. INVESTOR ALERT: Pomerantz Law Firm Investigates Claims On Behalf of Investors of Snap, Inc. - SNAP

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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