Snap (NYSE:SNAP) Posts Earnings Results, Meets Expectations

Key Points

• Snap reported a quarterly earnings per share (EPS) of ($0.16), matching analysts' expectations, with an 8.7% increase in revenue compared to the same quarter last year.
• The company's market capitalization stands at $15.71 billion, with a P/E ratio of -30.32 and a negative return on equity of 21.53%.
• Insiders sold a total of 667,802 shares worth nearly $5.81 million in the last ninety days, indicating potential concern over the stock's future performance.

Snap (NYSE:SNAP - Get Free Report) released its quarterly earnings results on Tuesday. The company reported ($0.16) earnings per share (EPS) for the quarter, hitting the consensus estimate of ($0.16), Zacks reports. Snap had a negative net margin of 9.69% and a negative return on equity of 22.68%. The firm had revenue of $1.34 billion for the quarter, compared to the consensus estimate of $1.34 billion. During the same quarter in the previous year, the firm posted ($0.15) EPS. The firm's quarterly revenue was up 8.7% on a year-over-year basis. Snap updated its Q3 2025 guidance to EPS.

Snap Stock Performance

Shares of Snap stock traded down $0.12 on Friday, reaching $7.43. The stock had a trading volume of 41,799,776 shares, compared to its average volume of 36,273,680. The business's 50-day moving average price is $8.91 and its two-hundred day moving average price is $9.13. The stock has a market cap of $12.41 billion, a P/E ratio of -23.20 and a beta of 0.62. The company has a debt-to-equity ratio of 1.55, a quick ratio of 4.30 and a current ratio of 4.30. Snap has a fifty-two week low of $7.08 and a fifty-two week high of $13.28.

Wall Street Analyst Weigh In

Several equities research analysts recently issued reports on the stock. JMP Securities reaffirmed a "market perform" rating on shares of Snap in a research note on Wednesday. Loop Capital dropped their price target on shares of Snap from $16.00 to $12.00 and set a "buy" rating on the stock in a research note on Friday, May 16th. Sanford C. Bernstein lifted their price target on shares of Snap from $9.00 to $10.00 and gave the stock a "market perform" rating in a research note on Tuesday, July 22nd. Evercore ISI increased their price objective on shares of Snap from $11.00 to $12.00 and gave the company an "in-line" rating in a research note on Wednesday. Finally, Canaccord Genuity Group lowered their target price on shares of Snap from $10.00 to $9.00 and set a "hold" rating for the company in a research note on Wednesday, April 30th. Two investment analysts have rated the stock with a sell rating, twenty-three have given a hold rating and five have issued a buy rating to the company's stock. Based on data from MarketBeat.com, Snap presently has an average rating of "Hold" and a consensus target price of $34.16.

Insider Activity at Snap

In related news, insider Ajit Mohan sold 28,201 shares of the company's stock in a transaction dated Wednesday, July 16th. The shares were sold at an average price of $9.40, for a total value of $265,089.40. Following the sale, the insider owned 5,676,293 shares of the company's stock, valued at $53,357,154.20. The trade was a 0.49% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, CFO Derek Andersen sold 33,886 shares of the company's stock in a transaction dated Monday, June 16th. The stock was sold at an average price of $8.04, for a total transaction of $272,443.44. Following the completion of the sale, the chief financial officer directly owned 3,204,418 shares in the company, valued at approximately $25,763,520.72. The trade was a 1.05% decrease in their position. The disclosure for this sale can be found here. In the last three months, insiders have sold 667,802 shares of company stock worth $5,813,801. Insiders own 22.68% of the company's stock.

Institutional Trading of Snap

An institutional investor recently raised its position in Snap stock. Empowered Funds LLC lifted its holdings in shares of Snap Inc. (NYSE:SNAP - Free Report) by 13.3% during the 1st quarter, according to its most recent disclosure with the Securities and Exchange Commission. The firm owned 40,393 shares of the company's stock after purchasing an additional 4,754 shares during the quarter. Empowered Funds LLC's holdings in Snap were worth $352,000 as of its most recent SEC filing. Institutional investors own 47.52% of the company's stock.

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.