Snap (NYSE:SNAP) Stock Rating Upgraded by Wall Street Zen

Key Points

• Wall Street Zen upgraded Snap from “hold” to “buy,” though broader analyst sentiment remains cautious, with a consensus “hold” rating and an average price target of $7.65.
• Snap’s latest quarterly results exceeded expectations: revenue was $1.60 billion, up 18.9% year over year, while its loss of $0.10 per share was narrower than analysts’ forecast.
• Snap shares opened at $5.33, near their 200-day average of $5.29, but continued insider selling and mixed analyst price targets highlight ongoing uncertainty around the company’s turnaround.

Snap (NYSE:SNAP - Get Free Report) was upgraded by stock analysts at Wall Street Zen from a "hold" rating to a "buy" rating in a note issued to investors on Saturday.

Several other equities research analysts have also weighed in on SNAP. Weiss Ratings reissued a "sell (e+)" rating on shares of Snap in a report on Friday, July 17th. Truist Financial cut their target price on shares of Snap from $8.00 to $7.00 and set a "hold" rating for the company in a research report on Tuesday. Zacks Research downgraded shares of Snap from a "hold" rating to a "strong sell" rating in a research note on Monday, August 3rd. UBS Group set a $6.00 price target on shares of Snap in a research report on Tuesday. Finally, Canaccord Genuity Group dropped their price target on shares of Snap from $7.00 to $6.00 and set a "hold" rating on the stock in a research note on Tuesday, April 14th. Two equities research 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 given a Sell rating to the stock. According to MarketBeat.com, the company currently has a consensus rating of "Hold" and a consensus target price of $7.65.

Snap Price Performance

Snap stock opened at $5.33 on Friday. The business's 50 day simple moving average is $4.92 and its 200 day simple moving average is $5.29. Snap has a 12 month low of $3.81 and a 12 month high of $9.28. The company has a market cap of $8.99 billion, a price-to-earnings ratio of -29.58 and a beta of 1.03. The company has a current ratio of 2.94, a quick ratio of 3.53 and a debt-to-equity ratio of 1.75.

Snap (NYSE:SNAP - Get Free Report) last released its earnings results on Monday, August 3rd. The company reported ($0.10) earnings per share (EPS) for the quarter, topping analysts' consensus estimates of ($0.12) by $0.02. The business had revenue of $1.60 billion during the quarter, compared to the consensus estimate of $1.54 billion. Snap had a negative return on equity of 14.61% and a negative net margin of 4.90%.The business's revenue for the quarter was up 18.9% on a year-over-year basis. During the same period last year, the business posted ($0.16) earnings per share. Sell-side analysts forecast that Snap will post -0.07 EPS for the current year.

Insider Buying and Selling at Snap

In other Snap news, CAO Rebecca Morrow sold 16,729 shares of Snap stock in a transaction dated Monday, May 18th. The stock was sold at an average price of $5.60, for a total transaction of $93,682.40. Following the completion of the transaction, the chief accounting officer owned 512,811 shares of the company's stock, valued at $2,871,741.60. The trade was a 3.16% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, General Counsel Zachary M. Briers sold 11,958 shares of the company's stock in a transaction dated Thursday, June 4th. The shares were 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 represents a 0.46% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 4,868,059 shares of company stock worth $26,955,631 in the last three months. 22.68% of the stock is currently owned by corporate insiders.

Institutional Trading of Snap

A number of hedge funds and other institutional investors have recently bought and sold shares of the company. Allworth Financial LP boosted its holdings in 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. Oak Harvest Investment Services bought a new position in shares of Snap in the fourth quarter worth $26,000. Arax Advisory Partners raised its position in shares of Snap by 220.0% in the fourth quarter. Arax Advisory Partners now owns 3,309 shares of the company's stock worth $27,000 after buying an additional 2,275 shares in the last quarter. V Square Quantitative Management LLC purchased a new stake in shares of Snap in the fourth quarter worth $29,000. Finally, EverSource Wealth Advisors LLC boosted its stake in 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 buying an additional 3,071 shares during the period. Institutional investors own 47.52% of the company's stock.

More Snap News

Here are the key news stories impacting Snap this week:

• Positive Sentiment: Freedom Capital upgraded Snap from “hold” to “strong-buy,” adding a bullish endorsement following the company’s recent earnings performance. Zacks.com
• Positive Sentiment: Snap’s second-quarter results strengthened hopes for a turnaround. Revenue reached $1.60 billion, ahead of expectations, while the adjusted loss per share was narrower than analysts anticipated; revenue also increased 18.9% year over year. Snap: Strong Q2 Earnings Bolster Hopes Of A Turnaround
• Positive Sentiment: Coverage from Cantor Fitzgerald and Wells Fargo projected meaningful upside for Snap, reinforcing investor optimism that improving operating trends could support further appreciation. Cantor Fitzgerald Forecast Wells Fargo Forecast
• Positive Sentiment: Citigroup raised its price target to $6.75, signaling valuation upside from recent trading levels. Citigroup Price Target
• Neutral Sentiment: Citizens JMP reiterated a “market perform” rating, suggesting the firm sees balanced risk and reward rather than a decisive near-term catalyst. Citizens JMP Rating
• Negative Sentiment: An analyst downgrade led to an 8.1% decline in Snap shares, highlighting continued sensitivity to cautious Wall Street views despite the strong quarter. Snap Trading Down on Analyst Downgrade
• Negative Sentiment: Rosenblatt Securities issued a pessimistic forecast, adding to concerns that Snap’s earnings improvement may not yet represent a durable recovery. Rosenblatt Securities Forecast

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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