Snap (NYSE:SNAP) Stock Rating Lowered by Zacks Research

Key Points

• Zacks Research has downgraded Snap from a "strong-buy" to a "hold" rating, reflecting a cautious outlook for the company's stock as multiple analysts adjust their price targets.
• Snap reported quarterly earnings of ($0.16) EPS, matching analysts' expectations, and noted an 8.7% year-over-year revenue increase to $1.34 billion despite a negative net margin.
• Insiders have recently sold significant amounts of company stock, with the general counsel and another insider reducing their ownership, indicating potential concerns about the stock's performance.

Snap (NYSE:SNAP - Get Free Report) was downgraded by analysts at Zacks Research from a "strong-buy" rating to a "hold" rating in a note issued to investors on Wednesday,Zacks.com reports.

Other research analysts also recently issued reports about the company. Evercore ISI boosted their price objective on Snap from $11.00 to $12.00 and gave the company an "in-line" rating in a research note on Wednesday, August 6th. Canaccord Genuity Group cut their price target on Snap from $10.00 to $9.00 and set a "hold" rating on the stock in a report on Wednesday, April 30th. Piper Sandler cut their target price on Snap from $10.00 to $9.00 and set a "neutral" rating on the stock in a report on Wednesday, August 6th. Citigroup lowered shares of Snap from an "outperform" rating to a "negative" rating in a research note on Tuesday, July 15th. Finally, UBS Group lowered their price objective on shares of Snap from $10.00 to $9.00 and set a "neutral" rating on the stock in a report on Wednesday, August 6th. Five equities research analysts have rated the stock with a Buy rating, twenty-three have assigned a Hold rating and two have given a Sell rating to the company's stock. According to MarketBeat, Snap has a consensus rating of "Hold" and an average price target of $34.16.

Snap Stock Performance

Shares of SNAP stock opened at $7.0650 on Wednesday. The stock has a market capitalization of $11.94 billion, a PE ratio of -22.08 and a beta of 0.62. The business's 50 day simple moving average is $8.68 and its 200 day simple moving average is $8.87. The company has a debt-to-equity ratio of 1.73, a current ratio of 3.88 and a quick ratio of 3.88. Snap has a one year low of $6.99 and a one year high of $13.28.

Snap (NYSE:SNAP - Get Free Report) last issued its quarterly earnings results on Tuesday, August 5th. The company reported ($0.16) earnings per share (EPS) for the quarter, hitting analysts' consensus estimates of ($0.16). Snap had a negative net margin of 9.69% and a negative return on equity of 23.32%. 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 company earned ($0.15) EPS. 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. As a group, research analysts forecast that Snap will post -0.3 earnings per share for the current year.

Insiders Place Their Bets

In related news, General Counsel Michael J. O'sullivan sold 68,705 shares of the firm's stock in a transaction dated Monday, August 18th. The shares were sold at an average price of $7.18, for a total transaction of $493,301.90. Following the completion of the sale, the general counsel owned 2,015,624 shares in the company, valued at approximately $14,472,180.32. This trade represents a 3.30% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through this link. Also, insider Ajit Mohan sold 184,287 shares of the stock in a transaction that occurred on Monday, August 18th. The shares were sold at an average price of $7.18, for a total transaction of $1,323,180.66. Following the transaction, the insider directly owned 5,492,006 shares of the company's stock, valued at $39,432,603.08. This represents a 3.25% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 1,526,744 shares of company stock worth $11,851,954 over the last 90 days. Company insiders own 22.68% of the company's stock.

Institutional Trading of Snap

A number of large investors have recently bought and sold shares of SNAP. NBC Securities Inc. increased its holdings in Snap by 154,650.0% in the 1st quarter. NBC Securities Inc. now owns 3,095 shares of the company's stock worth $26,000 after acquiring an additional 3,093 shares during the last quarter. Signaturefd LLC increased its stake in shares of Snap by 169.9% in the second quarter. Signaturefd LLC now owns 2,942 shares of the company's stock worth $26,000 after purchasing an additional 1,852 shares in the last quarter. Raiffeisen Bank International AG purchased a new position in shares of Snap in the fourth quarter worth about $30,000. Rakuten Securities Inc. raised its position in shares of Snap by 155.4% in the first quarter. Rakuten Securities Inc. now owns 3,489 shares of the company's stock valued at $30,000 after purchasing an additional 2,123 shares during the period. Finally, Quarry LP purchased a new stake in shares of Snap during the 1st quarter valued at approximately $34,000. 47.52% of the stock is owned by hedge funds and other institutional investors.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.