Snap (NYSE:SNAP) Stock Price Down 6.6% – Here’s Why

Snap Inc. (NYSE:SNAP) fell 6.6% during mid-day trading on Wednesday . The stock traded as low as $5.42 and last traded at $5.53. Approximately 13,421,344 shares were traded during trading, a decline of 72% from the average session volume of 47,647,398 shares. The stock had previously closed at $5.92.

Analysts Set New Price Targets

A number of research analysts have recently commented on SNAP shares. UBS Group set a $6.00 price objective on shares of Snap in a research report on Tuesday, August 4th. Susquehanna reiterated a “neutral” rating on shares of Snap in a research note on Tuesday, August 4th. Benchmark reiterated a “hold” rating on shares of Snap in a report on Tuesday, August 4th. Piper Sandler reissued a “neutral” rating on shares of Snap in a research report on Tuesday, August 4th. Finally, Truist Financial lowered their price target on Snap from $8.00 to $7.00 and set a “hold” rating on the stock in a research report on Tuesday, August 4th. Two research analysts have rated the stock with a Strong Buy rating, eight have assigned a Buy rating, twenty-three have issued a Hold rating and three have issued a Sell rating to the company. According to MarketBeat.com, Snap currently has a consensus rating of “Hold” and a consensus target price of $7.65.

Snap Price Performance

The stock has a market capitalization of $9.18 billion, a price-to-earnings ratio of -30.25 and a beta of 1.03. The company’s 50-day simple moving average is $4.86 and its 200-day simple moving average is $5.13. The company has a debt-to-equity ratio of 1.75, a current ratio of 2.94 and a quick ratio of 2.94.

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

Insiders Place Their Bets

In other Snap news, General Counsel Zachary M. Briers sold 67,540 shares of the stock in a transaction on Wednesday, August 19th. The stock was sold at an average price of $5.08, for a total transaction of $343,103.20. Following the transaction, the general counsel owned 2,356,791 shares in the company, valued at $11,972,498.28. This trade represents a 2.79% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider Ajit Mohan sold 54,608 shares of Snap stock in a transaction on Monday, August 17th. The stock was sold at an average price of $5.20, for a total value of $283,961.60. Following the sale, the insider directly owned 4,972,097 shares of the company’s stock, valued at $25,854,904.40. This represents a 1.09% 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 2,770,698 shares of company stock worth $15,345,605 over the last three months.

Hedge Funds Weigh In On Snap

Hedge funds have recently bought and sold shares of the business. Empowered Funds LLC boosted its holdings in Snap by 13.3% in the 1st quarter. Empowered Funds LLC now owns 40,393 shares of the company’s stock valued at $352,000 after purchasing an additional 4,754 shares during the period. Prudential Financial Inc. bought a new position in shares of Snap during the second quarter worth approximately $136,000. Investment Management Corp of Ontario raised its position in shares of Snap by 104.0% in the second quarter. Investment Management Corp of Ontario now owns 61,513 shares of the company’s stock valued at $535,000 after buying an additional 31,357 shares in the last quarter. Nebula Research & Development LLC acquired a new stake in shares of Snap in the second quarter valued at approximately $1,675,000. Finally, The Manufacturers Life Insurance Company boosted its stake in shares of Snap by 52.0% in the second quarter. The Manufacturers Life Insurance Company now owns 89,337 shares of the company’s stock valued at $776,000 after buying an additional 30,561 shares during the period. 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.