Snap (NYSE:SNAP) Posts Earnings Results, Misses Expectations By $0.12 EPS

Snap (NYSE:SNAP) announced its quarterly earnings data on Wednesday. The company reported $0.03 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.15 by ($0.12), FiscalAI reports. The business had revenue of $1.72 billion during the quarter, compared to analysts’ expectations of $1.70 billion. Snap had a negative net margin of 8.60% and a negative return on equity of 21.61%.

Snap Trading Down 3.0%

Snap stock traded down $0.18 during mid-day trading on Wednesday, reaching $5.92. 99,022,655 shares of the company traded hands, compared to its average volume of 48,684,129. The company has a debt-to-equity ratio of 1.57, a current ratio of 3.67 and a quick ratio of 3.67. Snap has a 52-week low of $5.86 and a 52-week high of $11.57. The firm has a market capitalization of $10.18 billion, a price-to-earnings ratio of -20.41 and a beta of 0.83. The firm’s 50 day moving average price is $7.71 and its 200 day moving average price is $7.90.

Insider Activity at Snap

In other news, insider Ajit Mohan sold 109,372 shares of the firm’s stock in a transaction that occurred on Monday, November 17th. The stock was sold at an average price of $8.34, for a total value of $912,162.48. Following the completion of the transaction, the insider owned 5,326,801 shares in the company, valued at $44,425,520.34. This trade represents a 2.01% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, CTO Robert C. Murphy sold 1,000,000 shares of Snap stock in a transaction that occurred on Friday, November 7th. The shares were sold at an average price of $8.00, for a total value of $8,000,000.00. Following the sale, the chief technology officer owned 51,911,126 shares in the company, valued at $415,289,008. This represents a 1.89% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 1,393,341 shares of company stock valued at $11,169,210 over the last three months.

Institutional Trading of Snap

Hedge funds have recently modified their holdings of the business. Allworth Financial LP grew its position in shares of Snap by 92.3% in the 3rd quarter. Allworth Financial LP now owns 3,293 shares of the company’s stock worth $25,000 after buying an additional 1,581 shares during the period. Banque Cantonale Vaudoise bought a new stake in Snap during the third quarter worth about $39,000. Caxton Associates LLP purchased a new stake in Snap in the third quarter worth about $84,000. Armistice Capital LLC bought a new position in shares of Snap during the third quarter valued at approximately $99,000. Finally, HUB Investment Partners LLC bought a new position in shares of Snap during the second quarter valued at approximately $117,000. Institutional investors own 47.52% of the company’s stock.

Analyst Ratings Changes

SNAP has been the topic of a number of recent research reports. New Street Research cut Snap from a “buy” rating to a “neutral” rating in a research note on Tuesday, October 28th. Exane BNP Paribas raised Snap to a “strong sell” rating in a research note on Wednesday, January 14th. Roth Mkm increased their price objective on Snap from $9.00 to $10.00 and gave the company a “neutral” rating in a research note on Friday, January 30th. BMO Capital Markets lifted their target price on shares of Snap from $12.00 to $13.00 and gave the stock an “outperform” rating in a research note on Thursday, November 6th. Finally, Piper Sandler increased their price target on shares of Snap from $9.00 to $10.00 and gave the company a “neutral” rating in a research report on Thursday, November 6th. Three investment analysts have rated the stock with a Buy rating, twenty-five have issued a Hold rating and five have given a Sell rating to the company. According to MarketBeat, the stock has an average rating of “Reduce” and an average price target of $9.83.

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.