Snap (NYSE:SNAP) Reaches New 12-Month Low - Should You Sell?

Key Points

• Snap Inc.'s stock reached a new 52-week low at $7.06, with a trading volume of over 26 million shares, raising concerns among investors.
• Wall Street analysts have issued mixed ratings on Snap, with a consensus rating of "Hold" and a target price of $34.16, despite recent price cuts from several firms.
• Insider trading activity shows executives sold a combined over 1.4 million shares recently, which may indicate lack of confidence in the stock's short-term performance.

Snap Inc. (NYSE:SNAP - Get Free Report)'s stock price hit a new 52-week low during trading on Thursday . The company traded as low as $7.06 and last traded at $7.12, with a volume of 26093587 shares traded. The stock had previously closed at $7.32.

Wall Street Analyst Weigh In

Several equities research analysts have commented on the company. Citizens Jmp restated a "market perform" rating on shares of Snap in a research note on Wednesday, August 6th. Royal Bank Of Canada reaffirmed a "sector perform" rating and issued a $12.00 target price on shares of Snap in a research report on Wednesday, April 30th. Morgan Stanley boosted their price target on shares of Snap from $6.50 to $8.50 and gave the stock an "equal weight" rating in a research report on Monday, July 21st. Rosenblatt Securities decreased their price objective on Snap from $9.00 to $8.70 and set a "neutral" rating for the company in a report on Wednesday, August 6th. Finally, UBS Group dropped their target price on Snap from $10.00 to $9.00 and set a "neutral" rating on the stock in a report on Wednesday, August 6th. Two analysts have rated the stock with a sell rating, twenty-two have given a hold rating and five have assigned a buy rating to the stock. According to MarketBeat.com, the company has a consensus rating of "Hold" and a consensus price target of $34.16.

Snap Stock Performance

The stock has a fifty day simple moving average of $8.83 and a two-hundred day simple moving average of $9.04. The company has a debt-to-equity ratio of 1.73, a quick ratio of 3.88 and a current ratio of 3.88. The stock has a market cap of $11.94 billion, a price-to-earnings ratio of -22.33 and a beta of 0.62.

Snap (NYSE:SNAP - Get Free Report) last posted its earnings results on Tuesday, August 5th. The company reported ($0.16) EPS for the quarter, hitting analysts' consensus estimates of ($0.16). The firm had revenue of $1.34 billion during the quarter, compared to analysts' expectations of $1.34 billion. Snap had a negative net margin of 9.69% and a negative return on equity of 23.32%. The business's revenue for the quarter was up 8.7% compared to the same quarter last year. During the same quarter in the prior year, the business earned ($0.15) earnings per share. Analysts expect that Snap Inc. will post -0.3 EPS for the current fiscal year.

Insiders Place Their Bets

In related news, CFO Derek Andersen sold 61,068 shares of the stock in a transaction on Friday, May 16th. The stock was sold at an average price of $8.60, for a total value of $525,184.80. Following the completion of the sale, the chief financial officer directly owned 3,238,304 shares in the company, valued at $27,849,414.40. This represents a 1.85% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, General Counsel Michael J. O'sullivan sold 68,845 shares of the firm's stock in a transaction on Friday, May 16th. The stock was sold at an average price of $8.59, for a total value of $591,378.55. Following the transaction, the general counsel directly owned 2,173,950 shares of the company's stock, valued at approximately $18,674,230.50. This represents a 3.07% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 1,459,277 shares of company stock worth $11,730,820 over the last quarter. 22.68% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Snap

Several large investors have recently modified their holdings of the company. Capital International Investors acquired a new stake in Snap during the 4th quarter worth about $422,049,000. Capital World Investors grew its stake in Snap by 38.9% during the fourth quarter. Capital World Investors now owns 84,137,317 shares of the company's stock worth $906,161,000 after purchasing an additional 23,569,522 shares during the period. Vanguard Group Inc. increased its holdings in Snap by 6.7% in the first quarter. Vanguard Group Inc. now owns 109,483,491 shares of the company's stock worth $953,601,000 after purchasing an additional 6,921,841 shares in the last quarter. AQR Capital Management LLC lifted its stake in Snap by 110.4% in the first quarter. AQR Capital Management LLC now owns 11,300,874 shares of the company's stock valued at $95,549,000 after buying an additional 5,930,766 shares during the period. Finally, Assenagon Asset Management S.A. boosted its holdings in shares of Snap by 121.9% during the 1st quarter. Assenagon Asset Management S.A. now owns 6,848,370 shares of the company's stock worth $59,649,000 after buying an additional 3,761,629 shares in the last quarter. 47.52% of the stock is currently owned by institutional investors and hedge funds.

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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