Snap (NYSE:SNAP) Upgraded at Wall Street Zen

Key Points

• Wall Street Zen upgraded Snap from “hold” to “buy,” adding to a mixed but generally cautious analyst backdrop that still shows a consensus rating of “hold” and an average price target of $7.48.
• Snap shares were down 3.3% to an opening price of $4.54, leaving the stock well below both its 50-day moving average of $5.17 and 200-day moving average of $5.64.
• Recent earnings were mixed: Snap missed EPS estimates with a $0.05 loss per share, but revenue came in at $1.53 billion, matching estimates and rising 12.2% year over year.

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

Several other research firms have also recently weighed in on SNAP. Tigress Financial began coverage on shares of Snap in a research report on Monday, April 27th. They issued a "buy" rating for the company. Freedom Capital lowered Snap from a "strong-buy" rating to a "hold" rating in a research report on Tuesday, May 12th. JPMorgan Chase & Co. lowered their target price on Snap from $7.00 to $6.00 and set an "underweight" rating for the company in a research note on Thursday, May 7th. Guggenheim restated a "neutral" rating and set a $6.50 target price on shares of Snap in a research report on Thursday, April 16th. Finally, Rothschild & Co Redburn raised Snap from a "neutral" rating to a "buy" rating and set a $10.00 price target on the stock in a research note on Monday, April 27th. One analyst has rated the stock with a Strong Buy rating, eight have assigned a Buy rating, twenty-five have assigned a Hold rating and two have issued a Sell rating to the stock. Based on data from MarketBeat.com, the company has an average rating of "Hold" and a consensus price target of $7.48.

Snap Trading Down 3.3%

SNAP opened at $4.54 on Friday. The company has a current ratio of 3.53, a quick ratio of 3.53 and a debt-to-equity ratio of 1.67. The stock has a market capitalization of $7.66 billion, a PE ratio of -18.90 and a beta of 1.05. Snap has a 1-year low of $3.81 and a 1-year high of $10.41. The firm has a 50-day moving average price of $5.17 and a two-hundred day moving average price of $5.64.

Snap (NYSE:SNAP - Get Free Report) last announced its earnings results on Wednesday, May 6th. The company reported ($0.05) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.09 by ($0.14). Snap had a negative return on equity of 18.92% and a negative net margin of 6.72%.The company had revenue of $1.53 billion for the quarter, compared to analyst estimates of $1.53 billion. During the same quarter in the previous year, the company posted ($0.08) earnings per share. Snap's revenue for the quarter was up 12.2% on a year-over-year basis. As a group, equities analysts anticipate that Snap will post -0.07 earnings per share for the current fiscal year.

Insider Activity at Snap

In other news, insider Ajit Mohan sold 44,785 shares of the company's stock in a transaction dated Monday, May 18th. The stock was sold at an average price of $5.60, for a total value of $250,796.00. Following the completion of the sale, the insider directly owned 5,057,891 shares of the company's stock, valued at $28,324,189.60. This represents a 0.88% decrease in their position. The sale was disclosed in a legal filing 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, CAO Rebecca Morrow sold 16,729 shares of the stock in a transaction that occurred on Monday, May 18th. The shares were sold at an average price of $5.60, for a total transaction of $93,682.40. Following the completion of the sale, the chief accounting officer owned 512,811 shares in the company, valued at $2,871,741.60. This represents a 3.16% decrease in their ownership of the stock. 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 three months, insiders sold 2,868,059 shares of company stock worth $15,855,631. 22.68% of the stock is owned by company insiders.

Hedge Funds Weigh In On Snap

A number of hedge funds and other institutional investors have recently made changes to their positions in SNAP. Allworth Financial LP grew its holdings in shares of 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 buying an additional 1,581 shares during the period. Oak Harvest Investment Services acquired a new stake in Snap during the 4th quarter worth $26,000. Arax Advisory Partners raised its stake in Snap by 220.0% during the 4th quarter. Arax Advisory Partners now owns 3,309 shares of the company's stock worth $27,000 after buying an additional 2,275 shares during the period. V Square Quantitative Management LLC bought a new position in Snap during the fourth quarter worth about $29,000. Finally, EverSource Wealth Advisors LLC lifted its holdings in Snap by 561.4% during the fourth quarter. EverSource Wealth Advisors LLC now owns 3,618 shares of the company's stock worth $29,000 after acquiring an additional 3,071 shares in the last quarter. 47.52% of the stock is owned by 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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