Snap (NYSE:SNAP) Sees Strong Trading Volume – Should You Buy?

Shares of Snap Inc. (NYSE:SNAP) saw an uptick in trading volume on Monday . 29,400,358 shares traded hands during mid-day trading, a decline of 39% from the previous session’s volume of 48,118,363 shares.The stock last traded at $5.1050 and had previously closed at $5.41.

Wall Street Analyst Weigh In

Several research firms recently weighed in on SNAP. Rosenblatt Securities reduced their price objective on shares of Snap from $6.40 to $6.00 and set a “neutral” rating on the stock in a research note on Tuesday, August 4th. Tigress Financial began coverage on shares of Snap in a report on Monday, April 27th. They issued a “buy” rating on the stock. Piper Sandler reissued a “neutral” rating on shares of Snap in a research report on Tuesday, August 4th. TD Cowen started coverage on shares of Snap in a report on Monday, April 27th. They issued a “buy” rating for the company. Finally, Royal Bank Of Canada decreased their price target on shares of Snap from $10.00 to $8.00 and set a “sector perform” rating for the company in a report on Thursday, May 7th. Two analysts have rated the stock with a Strong Buy rating, eight have given a Buy rating, twenty-three have given a Hold rating and three have issued a Sell rating to the company. According to data from MarketBeat.com, the stock presently has an average rating of “Hold” and a consensus price target of $7.65.

Snap Trading Down 1.3%

The company has a current ratio of 2.94, a quick ratio of 2.94 and a debt-to-equity ratio of 1.75. The firm has a market capitalization of $8.65 billion, a P/E ratio of -28.42 and a beta of 1.03. The business has a 50 day moving average of $4.86 and a 200-day moving average of $5.17.

Snap (NYSE:SNAP) last announced its quarterly earnings results on Monday, August 3rd. The company reported ($0.10) earnings per share for the quarter, beating analysts’ consensus estimates of ($0.12) by $0.02. The firm had revenue of $1.60 billion for the quarter, compared to analyst estimates of $1.54 billion. Snap had a negative net margin of 4.90% and a negative return on equity of 14.61%. The business’s revenue was up 18.9% on a year-over-year basis. During the same quarter in the previous year, the firm posted ($0.16) earnings per share. Analysts anticipate that Snap Inc. will post -0.05 EPS for the current fiscal year.

Insider Activity at Snap

In other Snap news, CTO Robert C. Murphy sold 2,000,000 shares of the stock in a transaction dated Wednesday, August 5th. The stock was sold at an average price of $5.55, for a total transaction of $11,100,000.00. Following the completion of the transaction, the chief technology officer owned 41,809,791 shares in the company, valued at approximately $232,044,340.05. This represents a 4.57% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, General Counsel Zachary M. Briers sold 11,958 shares of Snap stock in a transaction dated Thursday, June 4th. The shares were sold at an average price of $6.00, for a total value of $71,748.00. Following the completion of the sale, the general counsel directly owned 2,560,835 shares in the company, valued at $15,365,010. This represents a 0.46% decrease in their position. The SEC filing for this sale provides additional information. In the last ninety days, insiders have sold 2,362,826 shares of company stock valued at $13,232,775.

Institutional Investors Weigh In On Snap

Several institutional investors have recently bought and sold shares of SNAP. Allworth Financial LP grew its stake in shares of Snap by 92.3% during the 3rd quarter. Allworth Financial LP now owns 3,293 shares of the company’s stock worth $25,000 after acquiring an additional 1,581 shares in the last quarter. Arax Advisory Partners lifted its position in shares of Snap by 220.0% in the fourth quarter. Arax Advisory Partners now owns 3,309 shares of the company’s stock worth $27,000 after purchasing an additional 2,275 shares in the last quarter. EverSource Wealth Advisors LLC boosted 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 purchasing an additional 3,071 shares during the last quarter. Banque Cantonale Vaudoise acquired a new position in Snap during the third quarter worth $39,000. Finally, Los Angeles Capital Management LLC bought a new position in Snap in the fourth quarter valued at $41,000. Institutional investors own 47.52% of the company’s stock.

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.