Snap (NYSE:SNAP) Shares Up 7.1% - Should You Buy?

Shares of Snap Inc. (NYSE:SNAP - Get Free Report) were up 7.1% during mid-day trading on Friday . The stock traded as high as $8.94 and last traded at $8.72. Approximately 21,110,057 shares traded hands during trading, a decline of 30% from the average daily volume of 29,960,154 shares. The stock had previously closed at $8.14.

Wall Street Analysts Forecast Growth

Several analysts have recently weighed in on SNAP shares. Susquehanna cut their price objective on Snap from $13.00 to $8.00 and set a "neutral" rating for the company in a report on Wednesday, April 30th. Wells Fargo & Company dropped their price target on shares of Snap from $9.00 to $8.00 and set an "equal weight" rating on the stock in a research report on Wednesday, April 30th. Piper Sandler reduced their price objective on shares of Snap from $13.00 to $10.00 and set a "neutral" rating for the company in a research report on Thursday, April 10th. Rosenblatt Securities dropped their target price on shares of Snap from $12.00 to $9.00 and set a "neutral" rating on the stock in a report on Wednesday, April 30th. Finally, The Goldman Sachs Group reduced their target price on shares of Snap from $9.50 to $8.50 and set a "neutral" rating for the company in a report on Wednesday, April 30th. One equities research analyst has rated the stock with a sell rating, twenty-three have assigned a hold rating, six have issued a buy rating and one has assigned a strong buy rating to the company. According to MarketBeat, the company presently has a consensus rating of "Hold" and an average target price of $35.62.

Snap Trading Down 0.2%

The business has a 50-day moving average of $8.36 and a 200-day moving average of $9.52. The company has a quick ratio of 4.30, a current ratio of 4.30 and a debt-to-equity ratio of 1.55. The stock has a market cap of $14.54 billion, a price-to-earnings ratio of -28.06 and a beta of 0.59.

Snap (NYSE:SNAP - Get Free Report) last announced its quarterly earnings results on Tuesday, April 29th. The company reported ($0.08) earnings per share (EPS) for the quarter, missing the consensus estimate of $0.04 by ($0.12). Snap had a negative net margin of 9.63% and a negative return on equity of 21.53%. The firm had revenue of $1.36 billion for the quarter, compared to analyst estimates of $1.35 billion. During the same quarter in the prior year, the firm earned $0.03 earnings per share. The firm's quarterly revenue was up 14.1% compared to the same quarter last year. As a group, research analysts forecast that Snap Inc. will post -0.3 earnings per share for the current year.

Insider Transactions at Snap

In related news, insider Ajit Mohan sold 27,608 shares of the firm's stock in a transaction that occurred on Monday, June 16th. The stock was sold at an average price of $8.04, for a total value of $221,968.32. Following the transaction, the insider directly owned 2,526,855 shares of the company's stock, valued at approximately $20,315,914.20. This trade represents a 1.08% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this link. Also, CAO Rebecca Morrow sold 9,202 shares of the company's stock in a transaction that occurred on Friday, May 16th. The stock was sold at an average price of $8.59, for a total value of $79,045.18. Following the sale, the chief accounting officer directly owned 448,881 shares of the company's stock, valued at $3,855,887.79. The trade was a 2.01% decrease in their position. The disclosure for this sale can be found here. Insiders sold a total of 1,615,601 shares of company stock valued at $13,325,751 in the last three months.

Institutional Trading of Snap

A number of institutional investors and hedge funds have recently modified their holdings of SNAP. Charles Schwab Investment Management Inc. raised its holdings in Snap by 6.3% in the 4th quarter. Charles Schwab Investment Management Inc. now owns 6,601,172 shares of the company's stock worth $71,095,000 after acquiring an additional 389,812 shares during the period. Bank of New York Mellon Corp grew its position in shares of Snap by 2.0% in the fourth quarter. Bank of New York Mellon Corp now owns 1,538,111 shares of the company's stock valued at $16,565,000 after purchasing an additional 29,526 shares during the last quarter. Wealthcare Advisory Partners LLC bought a new position in shares of Snap in the first quarter worth about $122,000. NBC Securities Inc. lifted its position in shares of Snap by 154,650.0% during the 1st quarter. NBC Securities Inc. now owns 3,095 shares of the company's stock worth $26,000 after purchasing an additional 3,093 shares during the last quarter. Finally, Ameriprise Financial Inc. boosted its stake in Snap by 2.4% during the 4th quarter. Ameriprise Financial Inc. now owns 157,118 shares of the company's stock valued at $1,692,000 after purchasing an additional 3,710 shares during the period. 47.52% of the stock is currently 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.