Snap (NYSE:SNAP) Sees Unusually-High Trading Volume - What's Next?

Key Points

• Snap shares fell to $5.105 amid elevated trading activity, with about 29.4 million shares changing hands. The stock has an average analyst rating of “Hold” and a consensus price target of $7.65.
• Snap’s latest quarterly results beat expectations, reporting an adjusted loss of $0.10 per share versus the expected $0.12 loss, while revenue rose 18.9% year over year to $1.60 billion.
• Insider selling remains a concern: CTO Robert Murphy sold 2 million shares for $11.1 million, contributing to more than 2.55 million shares sold by insiders over the past 90 days.

Shares of Snap Inc. (NYSE:SNAP - Get Free Report) saw an uptick in trading volume on Monday . Approximately 29,400,358 shares changed hands during mid-day trading, a decline of 39% from the previous session's volume of 48,118,363 shares.The stock last traded at $5.1050 and had previously closed at $5.41.

Wall Street Analysts Forecast Growth

SNAP has been the topic of a number of research reports. Rothschild & Co Redburn upgraded shares of Snap from a "neutral" rating to a "buy" rating and set a $10.00 target price on the stock in a research report on Monday, April 27th. UBS Group set a $6.00 price target on shares of Snap in a report on Tuesday, August 4th. BNP Paribas Exane cut Snap to a "neutral" rating in a research report on Monday, April 27th. Mizuho lifted their target price on Snap from $5.00 to $6.00 and gave the company a "neutral" rating in a research report on Tuesday, August 4th. Finally, Freedom Capital upgraded shares of Snap from a "hold" rating to a "strong-buy" rating in a research note on Tuesday, August 4th. Two investment analysts have rated the stock with a Strong Buy rating, eight have issued a Buy rating, twenty-three have assigned a Hold rating and three have issued a Sell rating to the company. Based on data from MarketBeat.com, Snap has an average rating of "Hold" and a consensus target price of $7.65.

Snap Stock Performance

The firm has a market cap of $8.92 billion, a price-to-earnings ratio of -29.30 and a beta of 1.03. The stock's 50 day moving average is $4.87 and its 200 day moving average is $5.20. The company has a current ratio of 2.94, a quick ratio of 2.94 and a debt-to-equity ratio of 1.75.

Snap (NYSE:SNAP - Get Free Report) last issued its quarterly earnings data on Monday, August 3rd. The company reported ($0.10) EPS for the quarter, beating analysts' consensus estimates of ($0.12) by $0.02. Snap had a negative return on equity of 14.61% and a negative net margin of 4.90%.The firm had revenue of $1.60 billion for the quarter, compared to analyst estimates of $1.54 billion. During the same period in the prior year, the firm posted ($0.16) EPS. The company's revenue for the quarter was up 18.9% on a year-over-year basis. Analysts anticipate that Snap Inc. will post -0.05 earnings per share for the current year.

Insider Activity

In other Snap news, CTO Robert C. Murphy sold 2,000,000 shares of the firm's stock in a transaction that occurred on Wednesday, August 5th. The shares were sold at an average price of $5.55, for a total value of $11,100,000.00. Following the sale, the chief technology officer owned 41,809,791 shares in the company, valued at $232,044,340.05. This trade represents a 4.57% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at this link. Also, General Counsel Zachary M. Briers sold 11,958 shares of the business's stock in a transaction dated Thursday, June 4th. The stock was sold at an average price of $6.00, for a total value of $71,748.00. Following the sale, the general counsel owned 2,560,835 shares in the company, valued at approximately $15,365,010. This trade represents a 0.46% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last 90 days, insiders sold 2,552,843 shares of company stock worth $14,310,421.

Institutional Trading of Snap

A number of large investors have recently bought and sold shares of the business. Allworth Financial LP lifted its stake in shares of Snap by 92.3% in the 3rd quarter. Allworth Financial LP now owns 3,293 shares of the company's stock valued at $25,000 after purchasing an additional 1,581 shares during the period. Arax Advisory Partners increased 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 buying an additional 2,275 shares in the last quarter. EverSource Wealth Advisors LLC increased its holdings in shares of Snap by 561.4% during the fourth quarter. EverSource Wealth Advisors LLC now owns 3,618 shares of the company's stock valued at $29,000 after acquiring an additional 3,071 shares in the last quarter. Banque Cantonale Vaudoise bought a new stake in Snap during the 3rd quarter valued at $39,000. Finally, Los Angeles Capital Management LLC acquired a new stake in shares of Snap in the 4th quarter worth about $41,000. 47.52% of the stock is currently owned by institutional investors and hedge funds.

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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