Truist Financial Has Lowered Expectations for Snap (NYSE:SNAP) Stock Price

Key Points

• Truist Financial lowered its Snap price target from $8 to $7 while maintaining a “Hold” rating, implying roughly 21% upside from the prior close. Analysts overall also rate Snap “Hold,” with an average target of $7.57.
• Snap reported quarterly revenue of $1.60 billion, up 18.9% year over year and above estimates, while its $0.10 per-share loss was narrower than expected. Management guided for approximately $1.7 billion in next-quarter revenue, supported by improving advertising demand and AI-related initiatives.
• Snap shares traded at $5.78, with the company still reporting negative profitability metrics. Insiders sold about 2.87 million shares worth $15.9 million over the past 90 days, while institutional investors own 47.52% of the stock.

Snap (NYSE:SNAP - Get Free Report) had its price objective lowered by stock analysts at Truist Financial from $8.00 to $7.00 in a note issued to investors on Tuesday,Benzinga reports. The firm currently has a "hold" rating on the stock. Truist Financial's price objective would indicate a potential upside of 21.21% from the stock's previous close.

A number of other research analysts have also weighed in on SNAP. Barclays raised 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. Royal Bank Of Canada cut their price target on Snap from $10.00 to $8.00 and set a "sector perform" rating for the company in a report on Thursday, May 7th. TD Cowen initiated coverage on Snap in a research note on Monday, April 27th. They set a "buy" rating on the stock. Tigress Financial began coverage on Snap in a report on Monday, April 27th. They issued a "buy" rating for the company. Finally, KeyCorp raised Snap from a "sector weight" rating to an "overweight" rating in a research note on Monday, April 27th. One analyst has rated the stock with a Strong Buy rating, eight have given a Buy rating, twenty-five have assigned a Hold rating and two have given a Sell rating to the company's stock. According to MarketBeat.com, Snap presently has an average rating of "Hold" and an average target price of $7.57.

Snap Price Performance

SNAP traded up $0.73 on Tuesday, hitting $5.78. 53,091,393 shares of the company's stock were exchanged, compared to its average volume of 48,538,973. Snap has a fifty-two week low of $3.81 and a fifty-two week high of $9.55. The stock has a market cap of $9.75 billion, a price-to-earnings ratio of -23.94 and a beta of 1.03. The firm has a 50-day moving average price of $4.96 and a 200-day moving average price of $5.34. The company has a current ratio of 3.53, a quick ratio of 3.53 and a debt-to-equity ratio of 1.67.

Snap (NYSE:SNAP - Get Free Report) last issued its earnings results on Monday, August 3rd. The company reported ($0.10) EPS for the quarter, beating analysts' consensus estimates of ($0.12) by $0.02. The business had revenue of $1.60 billion during the quarter, compared to analysts' expectations of $1.54 billion. Snap had a negative net margin of 6.72% and a negative return on equity of 18.92%. The company's quarterly revenue was up 18.9% compared to the same quarter last year. During the same period in the prior year, the business earned ($0.16) earnings per share. As a group, equities analysts anticipate that Snap will post -0.07 earnings per share for the current year.

Insider Transactions at Snap

In related news, CTO Robert C. Murphy sold 2,000,000 shares of the 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 completion of the transaction, the chief technology officer directly owned 47,012,324 shares in the company, valued at approximately $255,747,042.56. This represents a 4.08% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Also, insider Ajit Mohan sold 44,785 shares of the firm's stock in a transaction on Monday, May 18th. The stock was sold at an average price of $5.60, for a total value of $250,796.00. Following the sale, the insider directly owned 5,057,891 shares of the company's stock, valued at approximately $28,324,189.60. This trade represents a 0.88% decrease in their position. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold a total of 2,868,059 shares of company stock valued at $15,855,631 in the last ninety days.

Institutional Investors Weigh In On Snap

A number of institutional investors have recently modified their holdings of SNAP. Handelsbanken Fonder AB lifted its stake in Snap by 21.2% during the 2nd quarter. Handelsbanken Fonder AB now owns 352,900 shares of the company's stock worth $1,567,000 after acquiring an additional 61,700 shares in the last quarter. Gradient Investments LLC lifted its position in shares of Snap by 7.1% during the second quarter. Gradient Investments LLC now owns 188,827 shares of the company's stock worth $838,000 after purchasing an additional 12,492 shares in the last quarter. Assenagon Asset Management S.A. boosted its stake in shares of Snap by 1,191.8% in the second quarter. Assenagon Asset Management S.A. now owns 3,903,141 shares of the company's stock valued at $17,330,000 after purchasing an additional 3,601,002 shares during the period. Fermata Advisors LLC acquired a new position in shares of Snap in the second quarter valued at approximately $75,000. Finally, Dynamic Advisor Solutions LLC purchased a new stake in Snap during the 2nd quarter worth approximately $47,000. 47.52% of the stock is owned by institutional investors and hedge funds.

Key Snap News

Here are the key news stories impacting Snap this week:

• Positive Sentiment: Snap reported second-quarter revenue of $1.60 billion, up 18.9% year over year and above the $1.54 billion consensus estimate. The company also reported a GAAP loss of $0.10 per share, narrower than the expected $0.12 loss. Snap Second-Quarter Results
• Positive Sentiment: Advertising performance improved, supported by increased spending from large North American advertisers and demand tied to FIFA World Cup campaigns. Snap also highlighted AI tools, margin expansion and positive free cash flow. Snap Earnings and Outlook
• Positive Sentiment: Management issued third-quarter revenue guidance of approximately $1.7 billion, broadly in line with Wall Street expectations but viewed as constructive given improving advertising trends and the company’s stronger outlook. CNBC Snap Earnings Report
• Positive Sentiment: Snap is prioritizing free-cash-flow generation through advertising gains, subscription growth and disciplined spending on its Specs smart-glasses initiative, potentially supporting a more durable financial profile. Snap Q2 Earnings Call Highlights

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.

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