Snap (NYSE:SNAP) Upgraded at Freedom Capital

Key Points

• Freedom Capital upgraded Snap to “strong buy” from “hold,” while other analysts delivered mixed views. MarketBeat’s overall consensus remains “hold,” with an average price target of $7.65.
• Snap’s latest quarterly results exceeded expectations: adjusted loss per share was $0.10 versus a projected $0.12 loss, and revenue reached $1.60 billion, up 18.9% year over year.
• Despite improved revenue and greater institutional ownership, Snap remains unprofitable and insiders have sold roughly 2.87 million shares worth $15.9 million over the past 90 days, factors that continue to temper investor enthusiasm.

Snap (NYSE:SNAP - Get Free Report) was upgraded by equities researchers at Freedom Capital from a "hold" rating to a "strong-buy" rating in a research note issued to investors on Tuesday,Zacks.com reports.

Other research analysts also recently issued reports about the stock. Barclays lifted their target price on shares of Snap from $15.00 to $16.00 and gave the stock an "overweight" rating in a research note on Tuesday. Guggenheim boosted their price objective on shares of Snap from $5.00 to $5.50 and gave the company a "neutral" rating in a research report on Tuesday. Wall Street Zen downgraded shares of Snap from a "buy" rating to a "hold" rating in a research note on Sunday, July 26th. Weiss Ratings reaffirmed a "sell (e+)" rating on shares of Snap in a research note on Friday, July 17th. Finally, Truist Financial dropped their target price on shares of Snap from $8.00 to $7.00 and set a "hold" rating for the company in a report on Tuesday. Two analysts have rated the stock with a Strong Buy rating, eight have assigned a Buy rating, twenty-three have given a Hold rating and three have given a Sell rating to the stock. According to data from MarketBeat, the stock presently has an average rating of "Hold" and an average target price of $7.65.

Snap Price Performance

SNAP opened at $5.21 on Tuesday. The stock's 50 day simple moving average is $4.93 and its 200 day simple moving average is $5.29. The company has a debt-to-equity ratio of 1.75, a current ratio of 2.94 and a quick ratio of 3.53. Snap has a 1 year low of $3.81 and a 1 year high of $9.28. The firm has a market cap of $8.81 billion, a price-to-earnings ratio of -28.97 and a beta of 1.03.

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

Insider Buying and Selling at Snap

In other news, CTO Robert C. Murphy sold 2,000,000 shares of the business's stock in a transaction that occurred on Wednesday, May 13th. The stock was sold at an average price of $5.44, for a total value of $10,880,000.00. Following the sale, the chief technology officer directly owned 47,012,324 shares of the company's stock, valued at $255,747,042.56. The trade was a 4.08% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. Also, CFO Douglas Hott sold 124,209 shares of the company's stock in a transaction that occurred on Monday, May 18th. The stock was sold at an average price of $5.60, for a total value of $695,570.40. Following the completion of the sale, the chief financial officer owned 2,571,149 shares in the company, valued at $14,398,434.40. The trade was a 4.61% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last ninety days, insiders have sold 2,868,059 shares of company stock valued at $15,855,631. 22.68% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Snap

A number of institutional investors have recently modified their holdings of the stock. Saba Capital Management L.P. raised its position in Snap by 232.5% in the first quarter. Saba Capital Management L.P. now owns 4,727,808 shares of the company's stock worth $21,748,000 after acquiring an additional 3,306,024 shares during the period. Empyrean Capital Partners LP bought a new stake in shares of Snap during the 1st quarter valued at $25,300,000. Leonteq Securities AG purchased a new stake in shares of Snap in the 4th quarter worth $1,620,000. Eurizon Capital SGR S.p.A. purchased a new stake in shares of Snap in the 4th quarter worth $1,629,000. Finally, Marsico Capital Management LLC bought a new position in Snap in the 4th quarter worth $5,620,000. 47.52% of the stock is owned by hedge funds and other institutional investors.

More Snap News

Here are the key news stories impacting Snap this week:

• Positive Sentiment: Better-than-expected Q2 results support turnaround hopes. Snap reported adjusted EPS of $(0.10), ahead of the $(0.12) consensus estimate, while revenue of $1.60 billion exceeded forecasts and increased 18.9% year over year. The results have strengthened the case that advertising and user-growth improvements could support a recovery. Snap: Strong Q2 Earnings Bolster Hopes Of A Turnaround
• Positive Sentiment: Several analysts see upside. Cantor Fitzgerald issued a bullish forecast, Wells Fargo said the stock is expected to rise, and Citigroup raised its price target to $6.75. Heavy trading in Snap call options also indicates increased speculative interest following the earnings report. Cantor Fitzgerald Forecasts Strong Price Appreciation Wells Fargo Analyst Forecast Citigroup Raises Price Target
• Neutral Sentiment: Analyst views remain divided. Citizens JMP reiterated a Market Perform rating, suggesting the earnings improvement may already be reflected in the stock. A speculative article about a possible future acquisition of Snap offers no confirmed transaction or takeover discussions. Citizens JMP Reiterates Market Perform Who Might Buy Snap If Its Founders Ever Decide to Sell
• Negative Sentiment: Bearish ratings are limiting enthusiasm. Rosenblatt Securities issued a pessimistic forecast, while Zacks Research downgraded Snap to “Strong Sell.” Snap also remains unprofitable, with analysts expecting a loss for the full year, and its shares are near the 200-day moving average after retreating from the post-earnings surge. Rosenblatt Pessimistic Forecast Zacks Downgrade

Snap Company Profile

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source