Snap (NYSE:SNAP) Trading Up 4.8% - Here's Why

Key Points

• Snap shares rose 4.8% in Friday trading, reaching as high as $5.56 before last trading at $5.6150, though volume was far below average.
• Analyst sentiment remains cautious: Snap’s consensus rating is still “Hold,” with a consensus target price of $7.91 despite recent target and rating changes from several firms.
• Latest earnings were mixed, as Snap posted a $0.05 loss per share, missing estimates, while revenue came in at $1.53 billion and was up 12.2% year over year.

Snap Inc. (NYSE:SNAP - Get Free Report) shares rose 4.8% during trading on Friday . The stock traded as high as $5.56 and last traded at $5.6150. Approximately 6,439,122 shares were traded during mid-day trading, a decline of 88% from the average daily volume of 52,646,535 shares. The stock had previously closed at $5.36.

Analyst Ratings Changes

Several research analysts have recently weighed in on the stock. Canaccord Genuity Group cut their price objective on shares of Snap from $7.00 to $6.00 and set a "hold" rating on the stock in a report on Tuesday, April 14th. Barclays upgraded shares of Snap from an "overweight" rating to an "overweight" rating in a report on Monday, April 27th. Citigroup increased their price target on shares of Snap from $6.00 to $7.00 and gave the stock a "neutral" rating in a research note on Wednesday, April 15th. Bank of America upgraded shares of Snap from a "neutral" rating to a "buy" rating and set a $10.00 price target on the stock in a report on Thursday, February 5th. Finally, Piper Sandler reissued a "neutral" rating on shares of Snap in a research note on Thursday, February 5th. One investment analyst has rated the stock with a Strong Buy rating, eleven have given a Buy rating, twenty-two have assigned a Hold rating and two have given a Sell rating to the company. According to data from MarketBeat, Snap has a consensus rating of "Hold" and a consensus target price of $7.91.

Snap Stock Performance

The stock's 50-day moving average is $5.19 and its 200-day moving average is $6.50. The company has a current ratio of 3.53, a quick ratio of 3.56 and a debt-to-equity ratio of 1.67. The stock has a market cap of $9.30 billion, a price-to-earnings ratio of -22.98 and a beta of 1.05.

Snap (NYSE:SNAP - Get Free Report) last announced its quarterly earnings results on Wednesday, May 6th. The company reported ($0.05) earnings per share for the quarter, missing analysts' consensus estimates of $0.09 by ($0.14). Snap had a negative net margin of 6.72% and a negative return on equity of 18.92%. The business had revenue of $1.53 billion for the quarter, compared to analyst estimates of $1.53 billion. During the same period last year, the firm earned ($0.08) earnings per share. The company's quarterly revenue was up 12.2% on a year-over-year basis. On average, analysts expect that Snap Inc. will post -0.12 EPS for the current year.

Insider Buying and Selling

In other Snap news, insider Ajit Mohan sold 28,058 shares of the firm's stock in a transaction dated Thursday, April 16th. The stock was sold at an average price of $6.02, for a total value of $168,909.16. Following the transaction, the insider directly owned 5,102,676 shares of the company's stock, valued at $30,718,109.52. This trade represents a 0.55% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, General Counsel Zachary M. Briers sold 11,437 shares of the business's stock in a transaction dated Wednesday, April 15th. The stock was sold at an average price of $6.04, for a total value of $69,079.48. Following the transaction, the general counsel owned 2,774,031 shares in the company, valued at approximately $16,755,147.24. This represents a 0.41% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 565,573 shares of company stock valued at $2,699,781 in the last 90 days. 22.68% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in SNAP. Alyeska Investment Group L.P. acquired a new position in Snap in the 3rd quarter worth $176,697,000. AQR Capital Management LLC increased its position in shares of Snap by 874.3% during the fourth quarter. AQR Capital Management LLC now owns 10,066,852 shares of the company's stock worth $81,239,000 after acquiring an additional 9,033,644 shares during the last quarter. Junto Capital Management LP purchased a new stake in shares of Snap during the third quarter worth about $29,071,000. Voloridge Investment Management LLC lifted its stake in shares of Snap by 53.3% in the third quarter. Voloridge Investment Management LLC now owns 10,300,911 shares of the company's stock worth $79,420,000 after acquiring an additional 3,582,223 shares in the last quarter. Finally, Assenagon Asset Management S.A. boosted its holdings in Snap by 537.9% in the fourth quarter. Assenagon Asset Management S.A. now owns 4,150,134 shares of the company's stock valued at $33,492,000 after purchasing an additional 3,499,578 shares during the last quarter. 47.52% of the stock is currently owned by hedge funds and other institutional investors.

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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