Snap (NYSE:SNAP) Price Target Raised to $5.25

Snap (NYSE:SNAP) had its price target lifted by DA Davidson from $5.00 to $5.25 in a research report released on Tuesday morning, Marketbeat reports. The brokerage currently has a neutral rating on the stock.

A number of other analysts have also recently weighed in on SNAP. Citigroup restated a “market perform” rating on shares of Snap in a research note on Wednesday, June 17th. BNP Paribas Exane cut Snap to a “neutral” rating in a research report on Monday, April 27th. JPMorgan Chase & Co. dropped their price objective on Snap from $7.00 to $6.00 and set an “underweight” rating on the stock in a report on Thursday, May 7th. KeyCorp raised Snap from a “sector weight” rating to an “overweight” rating in a research report on Monday, April 27th. Finally, TD Cowen began coverage on Snap in a research note on Monday, April 27th. They set a “buy” rating for the company. One investment analyst has rated the stock with a Strong Buy rating, eight have issued a Buy rating, twenty-four have issued a Hold rating and three have assigned a Sell rating to the company. According to data from MarketBeat.com, the stock presently has a consensus rating of “Hold” and a consensus target price of $7.65.

Snap Price Performance

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

Snap (NYSE:SNAP) last released its quarterly earnings data on Monday, August 3rd. The company reported ($0.10) earnings per share (EPS) for the quarter, topping the consensus estimate 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 4.90% and a negative return on equity of 14.61%. The company’s revenue for the quarter was up 18.9% on a year-over-year basis. During the same period in the previous year, the company earned ($0.16) EPS. Equities analysts forecast that Snap will post -0.07 EPS for the current fiscal year.

Insider Activity

In other Snap news, CFO Douglas Hott sold 114,702 shares of the firm’s stock in a transaction dated Tuesday, May 19th. The stock was sold at an average price of $5.67, for a total transaction of $650,360.34. Following the transaction, the chief financial officer owned 2,456,447 shares of the company’s stock, valued at approximately $13,928,054.49. This trade represents a 4.46% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed 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 Snap stock in a transaction dated Monday, May 18th. The stock was sold at an average price of $5.60, for a total value of $93,682.40. Following the sale, the chief accounting officer owned 512,811 shares in the company, valued at $2,871,741.60. This trade represents a 3.16% 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. Insiders sold 2,868,059 shares of company stock worth $15,855,631 over the last three months. Company insiders own 22.68% of the company’s stock.

Institutional Trading of Snap

A number of large investors have recently made changes to their positions in the company. Mackenzie Financial Corp grew its position in shares of Snap by 5.1% during the third quarter. Mackenzie Financial Corp now owns 27,638 shares of the company’s stock worth $213,000 after acquiring an additional 1,349 shares during the last quarter. WealthCollab LLC raised its position in Snap by 1.2% in the 4th quarter. WealthCollab LLC now owns 115,390 shares of the company’s stock valued at $931,000 after purchasing an additional 1,369 shares during the last quarter. Alliancebernstein L.P. raised its position in Snap by 0.3% in the 3rd quarter. Alliancebernstein L.P. now owns 414,416 shares of the company’s stock valued at $3,195,000 after purchasing an additional 1,396 shares during the last quarter. Orion Porfolio Solutions LLC boosted its stake in Snap by 8.3% during the 2nd quarter. Orion Porfolio Solutions LLC now owns 18,913 shares of the company’s stock worth $164,000 after purchasing an additional 1,451 shares during the period. Finally, Newbridge Financial Services Group Inc. boosted its stake in Snap by 37.5% during the 4th quarter. Newbridge Financial Services Group Inc. now owns 5,500 shares of the company’s stock worth $44,000 after purchasing an additional 1,500 shares during the period. 47.52% of the stock is owned by institutional investors and hedge funds.

Key Stories Impacting Snap

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.