Snap (NYSE:SNAP) Price Target Raised to $6.75 at Citigroup

Key Points

• Citigroup raised Snap’s price target from $6.50 to $6.75 while maintaining a “neutral” rating, implying 17.9% upside from the prior close.
• Snap shares rose 13.6% to $5.72, while analysts’ consensus rating remained “Hold” with an average price target of $7.61.
• Snap’s latest quarterly results exceeded expectations, with revenue up 18.9% year over year to $1.60 billion and an adjusted loss of $0.10 per share versus the expected $0.12 loss.

Snap (NYSE:SNAP - Get Free Report) had its price target increased by equities research analysts at Citigroup from $6.50 to $6.75 in a report issued on Tuesday,Benzinga reports. The firm presently has a "neutral" rating on the stock. Citigroup's price target would indicate a potential upside of 17.90% from the company's previous close.

A number of other equities analysts also recently weighed in on SNAP. Stifel Nicolaus lifted their target price on shares of Snap from $4.50 to $5.25 and gave the stock a "hold" rating in a research note on Tuesday, April 21st. Evercore set a $8.00 target price on Snap in a research report on Tuesday. Barclays lifted their target price on Snap from $15.00 to $16.00 and gave the stock an "overweight" rating in a report on Tuesday. Benchmark reaffirmed a "hold" rating on shares of Snap in a research report on Wednesday, June 17th. Finally, Mizuho set a $6.00 target price on shares of Snap in a research report on Tuesday. One analyst has rated the stock with a Strong Buy rating, eight have assigned a Buy rating, twenty-five have issued a Hold rating and two have issued a Sell rating to the company. According to MarketBeat.com, the stock presently has an average rating of "Hold" and a consensus price target of $7.61.

Snap Trading Up 13.6%

NYSE:SNAP traded up $0.69 during trading hours on Tuesday, hitting $5.72. 48,523,015 shares of the company were exchanged, compared to its average volume of 48,498,520. The company has a fifty day simple moving average of $4.96 and a 200 day simple moving average of $5.34. Snap has a one year low of $3.81 and a one year high of $9.55. The stock has a market capitalization of $9.67 billion, a price-to-earnings ratio of -23.90 and a beta of 1.03. The company has a current ratio of 3.53, a quick ratio of 3.53 and a debt-to-equity ratio of 1.67.

Snap (NYSE:SNAP - Get Free Report) last issued its quarterly earnings data on Monday, August 3rd. The company reported ($0.10) earnings per share (EPS) for the quarter, topping analysts' consensus estimates of ($0.12) by $0.02. Snap had a negative return on equity of 18.92% and a negative net margin of 6.72%.The company had revenue of $1.60 billion during the quarter, compared to the consensus estimate of $1.54 billion. During the same period last year, the company earned ($0.16) earnings per share. The firm's revenue was up 18.9% compared to the same quarter last year. Sell-side analysts expect that Snap will post -0.07 EPS for the current fiscal year.

Insider Activity

In other Snap news, insider Ajit Mohan sold 44,785 shares of the business's stock in a transaction dated Monday, May 18th. The shares were sold at an average price of $5.60, for a total value of $250,796.00. Following the transaction, the insider directly owned 5,057,891 shares in the company, valued at $28,324,189.60. The trade was a 0.88% 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, General Counsel Zachary M. Briers sold 129,493 shares of the business's stock in a transaction on Monday, May 18th. The shares were sold at an average price of $5.60, for a total value of $725,160.80. Following the sale, the general counsel owned 2,644,538 shares in the company, valued at approximately $14,809,412.80. The trade was a 4.67% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last 90 days, insiders have sold 2,868,059 shares of company stock valued at $15,855,631.

Hedge Funds Weigh In On Snap

Several hedge funds and other institutional investors have recently added to or reduced their stakes in SNAP. Mackenzie Financial Corp increased its holdings in shares of Snap by 5.1% in the third quarter. Mackenzie Financial Corp now owns 27,638 shares of the company's stock valued at $213,000 after purchasing an additional 1,349 shares during the last quarter. WealthCollab LLC lifted its stake in shares of Snap by 1.2% in the 4th quarter. WealthCollab LLC now owns 115,390 shares of the company's stock valued at $931,000 after purchasing an additional 1,369 shares during the last quarter. Alliancebernstein L.P. boosted its holdings in Snap by 0.3% in the third quarter. Alliancebernstein L.P. now owns 414,416 shares of the company's stock valued at $3,195,000 after purchasing an additional 1,396 shares during the period. Orion Porfolio Solutions LLC increased 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 valued at $164,000 after buying an additional 1,451 shares during the last quarter. Finally, Newbridge Financial Services Group Inc. raised its position in shares of Snap by 37.5% during the 4th quarter. Newbridge Financial Services Group Inc. now owns 5,500 shares of the company's stock worth $44,000 after acquiring an additional 1,500 shares in the last quarter. 47.52% of the stock is currently owned by hedge funds and other institutional investors.

Trending Headlines about Snap

Here are the key news stories impacting Snap this week:

• Positive Sentiment: Snap reported second-quarter revenue of $1.60 billion, up 18.9% year over year and above the $1.54 billion consensus estimate. The company also reported a GAAP loss of $0.10 per share, narrower than the expected $0.12 loss. Snap Second-Quarter Results
• Positive Sentiment: Advertising performance improved, supported by increased spending from large North American advertisers and demand tied to FIFA World Cup campaigns. Snap also highlighted AI tools, margin expansion and positive free cash flow. Snap Earnings and Outlook
• Positive Sentiment: Management issued third-quarter revenue guidance of approximately $1.7 billion, broadly in line with Wall Street expectations but viewed as constructive given improving advertising trends and the company’s stronger outlook. CNBC Snap Earnings Report
• Positive Sentiment: Snap is prioritizing free-cash-flow generation through advertising gains, subscription growth and disciplined spending on its Specs smart-glasses initiative, potentially supporting a more durable financial profile. Snap Q2 Earnings Call Highlights

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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