Snap (NYSE:SNAP) Shares Down 6.4% - Here's Why

Key Points

• Snap Inc. shares fell by 6.4%, trading at $7.87, which is significantly lower than the previous close of $8.40, amid a surge in trading volume.
• Despite the recent drop, Snap has received mixed ratings from analysts, with a consensus rating of "Hold" and an average price target of $34.77.
• Recent insider selling has raised concerns, as Snap's CTO sold 1 million shares, indicating potential lack of confidence among executives, while institutional ownership stands at 47.52%.

Snap Inc. (NYSE:SNAP - Get Free Report) dropped 6.4% during trading on Tuesday . The company traded as low as $7.89 and last traded at $7.87. Approximately 87,980,629 shares traded hands during mid-day trading, an increase of 80% from the average daily volume of 48,823,004 shares. The stock had previously closed at $8.40.

Analyst Upgrades and Downgrades

SNAP has been the topic of a number of research reports. JMP Securities reaffirmed a "market perform" rating on shares of Snap in a research note on Wednesday, August 6th. Cantor Fitzgerald restated a "neutral" rating and set a $7.00 price objective on shares of Snap in a report on Wednesday, August 6th. Citizens Jmp reiterated a "market perform" rating on shares of Snap in a report on Wednesday, August 6th. Morgan Stanley upped their target price on Snap from $6.50 to $8.50 and gave the stock an "equal weight" rating in a report on Monday, July 21st. Finally, Sanford C. Bernstein upped their target price on Snap from $9.00 to $10.00 and gave the stock a "market perform" rating in a report on Tuesday, July 22nd. Four research analysts have rated the stock with a Buy rating, twenty-three have issued a Hold rating and two have assigned a Sell rating to the company. According to data from MarketBeat, Snap has an average rating of "Hold" and an average price target of $34.77.

Snap Stock Down 8.3%

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 capitalization of $13.02 billion, a PE ratio of -24.11 and a beta of 0.62. The business has a 50 day moving average of $7.96 and a two-hundred day moving average of $8.36.

Snap (NYSE:SNAP - Get Free Report) last issued its quarterly earnings data on Tuesday, August 5th. The company reported ($0.16) earnings per share for the quarter, hitting analysts' consensus estimates of ($0.16). Snap had a negative return on equity of 23.32% and a negative net margin of 9.69%.The firm had revenue of $1.34 billion during the quarter, compared to analysts' expectations of $1.34 billion. During the same period in the prior year, the business posted ($0.15) EPS. The firm's quarterly revenue was up 8.7% on a year-over-year basis. Snap has set its Q3 2025 guidance at EPS. Analysts predict that Snap Inc. will post -0.3 EPS for the current year.

Insiders Place Their Bets

In related news, CTO Robert C. Murphy sold 1,000,000 shares of the company's stock in a transaction dated Thursday, August 7th. The stock was sold at an average price of $7.80, for a total transaction of $7,800,000.00. Following the transaction, the chief technology officer directly owned 53,215,224 shares of the company's stock, valued at $415,078,747.20. This represents a 1.84% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at this link. Also, General Counsel Michael J. O'sullivan sold 68,705 shares of the company's stock in a transaction dated Monday, August 18th. The shares were sold at an average price of $7.18, for a total value of $493,301.90. Following the transaction, the general counsel directly owned 2,015,624 shares in the company, valued at $14,472,180.32. This represents a 3.30% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last quarter, insiders sold 1,486,532 shares of company stock valued at $11,441,229.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in the business. Corient Private Wealth LLC increased its position in Snap by 102.3% during the 2nd quarter. Corient Private Wealth LLC now owns 41,971 shares of the company's stock valued at $365,000 after buying an additional 21,223 shares in the last quarter. Centaurus Financial Inc. acquired a new position in shares of Snap in the second quarter valued at about $208,000. Orion Porfolio Solutions LLC increased its holdings in shares of 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 purchasing an additional 1,451 shares during the period. State of Wyoming increased its holdings in shares of Snap by 36.7% in the second quarter. State of Wyoming now owns 45,582 shares of the company's stock valued at $396,000 after purchasing an additional 12,239 shares during the period. Finally, Nikko Asset Management Americas Inc. increased its holdings in shares of Snap by 94.1% in the second quarter. Nikko Asset Management Americas Inc. now owns 2,107,288 shares of the company's stock valued at $18,312,000 after purchasing an additional 1,021,677 shares during the period. 47.52% of the stock is owned by institutional investors and hedge funds.

About Snap

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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