Snap (NYSE:SNAP) Shares Gap Up - Here's What Happened

Key Points

• Snap Inc. shares gapped up before the market opened on Monday, rising from $8.16 to $8.98, and last traded at $8.76 with a significant volume of 63,779,081 shares.
• Analysts have expressed mixed views on Snap's stock, with price targets ranging from $9.00 to $12.00 and a consensus rating of "Hold," while the average target price remains notably high at $35.84.
• Institutional investors, including Vanguard Group and AQR Capital Management, have recently increased their positions in Snap, indicating a growing confidence in the company's prospects, with institutional ownership now at 47.52%.

Snap Inc. (NYSE:SNAP - Get Free Report) gapped up before the market opened on Monday . The stock had previously closed at $8.16, but opened at $8.98. Snap shares last traded at $8.76, with a volume of 63,779,081 shares.

Wall Street Analysts Forecast Growth

Several research firms recently commented on SNAP. TD Cowen raised their target price on Snap from $9.00 to $10.00 and gave the stock a "hold" rating in a research note on Tuesday, July 15th. Rosenblatt Securities cut their price target on Snap from $9.00 to $8.70 and set a "neutral" rating on the stock in a report on Wednesday, August 6th. Cantor Fitzgerald reiterated a "neutral" rating and issued a $7.00 price target on shares of Snap in a report on Wednesday, August 6th. Citigroup lowered Snap from an "outperform" rating to a "negative" rating in a report on Tuesday, July 15th. Finally, Morgan Stanley increased their price target on Snap from $6.50 to $8.50 and gave the stock an "equal weight" rating in a report on Monday, July 21st. Four equities research analysts have rated the stock with a Buy rating, twenty-two have assigned a Hold rating and two have issued a Sell rating to the company's stock. According to MarketBeat.com, Snap presently has an average rating of "Hold" and a consensus target price of $35.84.

Snap Stock Down 1.3%

The company has a debt-to-equity ratio of 1.73, a current ratio of 3.88 and a quick ratio of 3.88. The stock has a fifty day moving average price of $8.11 and a two-hundred day moving average price of $8.38. The company has a market cap of $14.22 billion, a P/E ratio of -26.14 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) earnings per share for the quarter, meeting 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 company had revenue of $1.34 billion for the quarter, compared to analyst estimates of $1.34 billion. During the same quarter last year, the company earned ($0.15) earnings per share. The company's revenue for the quarter was up 8.7% on a year-over-year basis. Snap has set its Q3 2025 guidance at EPS. On average, research analysts expect that Snap Inc. will post -0.3 EPS for the current year.

Insider Buying and Selling at Snap

In related news, General Counsel Michael J. O'sullivan sold 14,290 shares of Snap stock in a transaction on Tuesday, September 16th. The stock was sold at an average price of $7.58, for a total transaction of $108,318.20. Following the sale, the general counsel directly owned 1,939,064 shares in the company, valued at approximately $14,698,105.12. This trade represents a 0.73% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, insider Ajit Mohan sold 27,595 shares of Snap stock in a transaction on Tuesday, September 16th. The stock was sold at an average price of $7.56, for a total value of $208,618.20. Following the sale, the insider owned 5,464,411 shares in the company, valued at $41,310,947.16. This trade represents a 0.50% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 1,510,532 shares of company stock valued at $11,650,269 in the last ninety days.

Institutional Trading of Snap

A number of large investors have recently bought and sold shares of the company. AssuredPartners Investment Advisors LLC increased its position in Snap by 6.3% in the first quarter. AssuredPartners Investment Advisors LLC now owns 22,128 shares of the company's stock worth $193,000 after buying an additional 1,306 shares during the last quarter. DMC Group LLC increased its position in Snap by 7.2% in the first quarter. DMC Group LLC now owns 19,547 shares of the company's stock worth $170,000 after buying an additional 1,313 shares during the last quarter. Apollon Wealth Management LLC increased its position in Snap by 9.2% in the second quarter. Apollon Wealth Management LLC now owns 15,934 shares of the company's stock worth $138,000 after buying an additional 1,340 shares during the last quarter. Zullo Investment Group Inc. increased its position in Snap by 12.8% in the second quarter. Zullo Investment Group Inc. now owns 12,040 shares of the company's stock worth $105,000 after buying an additional 1,365 shares during the last quarter. Finally, Orion Porfolio Solutions LLC increased its position in Snap by 8.3% in the second quarter. Orion Porfolio Solutions LLC now owns 18,913 shares of the company's stock worth $164,000 after buying an additional 1,451 shares during the last quarter. 47.52% of the stock is owned by hedge funds and other institutional investors.

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.