Wells Fargo & Company Has Lowered Expectations for Snap (NYSE:SNAP) Stock Price

Key Points

• Wells Fargo cut its price target on Snap from $7.00 to $5.00 and kept an equal weight rating, implying only about 5% upside from the current share price.
• Other analysts have also been mixed on Snap, and the stock’s consensus rating is Hold with an average price target of $7.72.
• Snap recently reported mixed earnings, missing EPS expectations while revenue matched estimates; the company also saw notable insider selling and remains unprofitable on a net basis.

Snap (NYSE:SNAP - Get Free Report) had its price objective reduced by equities research analysts at Wells Fargo & Company from $7.00 to $5.00 in a research report issued to clients and investors on Tuesday,Benzinga reports. The brokerage presently has an "equal weight" rating on the stock. Wells Fargo & Company's price target suggests a potential upside of 5.04% from the stock's current price.

SNAP has been the subject of a number of other reports. TD Cowen assumed coverage on shares of Snap in a research note on Monday, April 27th. They issued a "buy" rating for the company. The Goldman Sachs Group cut their price target on shares of Snap from $8.00 to $7.00 and set a "neutral" rating on the stock in a report on Thursday, May 7th. Wall Street Zen lowered shares of Snap from a "buy" rating to a "hold" rating in a research note on Sunday, May 17th. Citigroup reiterated a "market perform" rating on shares of Snap in a report on Wednesday, June 17th. Finally, BMO Capital Markets raised their target price on Snap from $13.00 to $15.00 and gave the company an "outperform" rating in a report on Wednesday, April 15th. One investment analyst has rated the stock with a Strong Buy rating, nine have given a Buy rating, twenty-three have issued a Hold rating and two have given a Sell rating to the stock. According to data from MarketBeat, the company currently has a consensus rating of "Hold" and a consensus price target of $7.72.

Snap Price Performance

SNAP opened at $4.76 on Tuesday. The stock has a market cap of $8.04 billion, a price-to-earnings ratio of -19.83 and a beta of 1.05. Snap has a 1 year low of $3.81 and a 1 year high of $10.41. 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 fifty day moving average price of $5.41 and a 200 day moving average price of $5.82.

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

Insider Buying and Selling at Snap

In other Snap news, General Counsel Zachary M. Briers sold 129,493 shares of Snap 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 $725,160.80. Following the transaction, the general counsel directly owned 2,644,538 shares of the company's stock, valued at $14,809,412.80. The trade was a 4.67% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CTO Robert C. Murphy sold 2,000,000 shares of the company'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 transaction, the chief technology officer owned 47,012,324 shares of the company's stock, valued at approximately $255,747,042.56. This trade represents a 4.08% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold 2,907,554 shares of company stock worth $16,093,619 in the last ninety days.

Hedge Funds Weigh In On Snap

Large investors have recently bought and sold shares of the stock. Militia Capital Management LLC bought a new stake in Snap in the 1st quarter valued at $2,032,000. Parallel Advisors LLC raised its position in shares of Snap by 40.0% during the first quarter. Parallel Advisors LLC now owns 48,798 shares of the company's stock valued at $224,000 after buying an additional 13,951 shares during the last quarter. NewEdge Advisors LLC lifted its stake in shares of Snap by 44.8% in the first quarter. NewEdge Advisors LLC now owns 48,303 shares of the company's stock valued at $222,000 after buying an additional 14,938 shares during the period. Western Wealth Management LLC acquired a new stake in Snap during the first quarter worth about $48,000. Finally, Centaurus Financial Inc. grew its position in Snap by 9.0% during the first quarter. Centaurus Financial Inc. now owns 227,072 shares of the company's stock worth $1,045,000 after buying an additional 18,700 shares in the last quarter. 47.52% of the stock is currently owned by institutional investors and hedge funds.

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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