Snap (NYSE:SNAP) Hits New 52-Week Low – Should You Sell?

Shares of Snap Inc. (NYSE:SNAP) reached a new 52-week low during trading on Monday . The stock traded as low as $5.09 and last traded at $5.1750, with a volume of 3480460 shares changing hands. The stock had previously closed at $5.22.

Analyst Ratings Changes

A number of brokerages have weighed in on SNAP. Rosenblatt Securities decreased their price objective on shares of Snap from $9.50 to $6.40 and set a “neutral” rating for the company in a research report on Thursday. BMO Capital Markets upped their price target on Snap from $12.00 to $13.00 and gave the stock an “outperform” rating in a report on Thursday, November 6th. Truist Financial increased their price target on Snap from $10.00 to $11.00 and gave the stock a “hold” rating in a research report on Friday, November 7th. Morgan Stanley boosted their price objective on Snap from $8.50 to $9.50 and gave the company an “equal weight” rating in a research report on Tuesday, January 13th. Finally, Citigroup upped their target price on Snap from $8.50 to $10.00 and gave the stock a “neutral” rating in a research note on Wednesday, November 12th. One analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating, twenty-three have issued a Hold rating and three have given a Sell rating to the company’s stock. According to data from MarketBeat.com, Snap presently has an average rating of “Hold” and a consensus price target of $8.66.

Snap Price Performance

The firm has a market capitalization of $8.86 billion, a PE ratio of -19.17 and a beta of 0.83. The stock’s 50 day simple moving average is $7.58 and its two-hundred day simple moving average is $7.80. The company has a debt-to-equity ratio of 1.53, a quick ratio of 3.56 and a current ratio of 3.56.

Snap (NYSE:SNAP) last posted its quarterly earnings results on Wednesday, February 4th. The company reported $0.03 EPS for the quarter, missing the consensus estimate of $0.15 by ($0.12). The company had revenue of $1.72 billion during the quarter, compared to analyst estimates of $1.70 billion. Snap had a negative net margin of 7.76% and a negative return on equity of 20.72%. Snap’s revenue for the quarter was up 10.2% compared to the same quarter last year. During the same period in the prior year, the business posted $0.01 EPS. On average, sell-side analysts forecast that Snap Inc. will post -0.3 EPS for the current year.

Insider Activity

In related news, CFO Derek Andersen sold 62,868 shares of the company’s stock in a transaction dated Monday, November 17th. The shares were sold at an average price of $8.34, for a total value of $524,319.12. Following the completion of the sale, the chief financial officer owned 3,030,301 shares of the company’s stock, valued at approximately $25,272,710.34. This represents a 2.03% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this link. Also, General Counsel Michael J. O’sullivan sold 70,882 shares of the company’s stock in a transaction on Monday, November 17th. The shares were sold at an average price of $8.34, for a total value of $591,155.88. Following the completion of the transaction, the general counsel directly owned 1,854,982 shares in the company, valued at approximately $15,470,549.88. This trade represents a 3.68% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last 90 days, insiders sold 393,341 shares of company stock worth $3,169,210. 22.68% of the stock is owned by insiders.

Institutional Trading of Snap

A number of institutional investors and hedge funds have recently bought and sold shares of the business. Empowered Funds LLC grew its holdings in shares of Snap by 13.3% in the first 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 in the last quarter. Blue Trust Inc. boosted its position in Snap by 61.5% in the 2nd quarter. Blue Trust Inc. now owns 6,633 shares of the company’s stock valued at $58,000 after buying an additional 2,525 shares during the period. Apollon Wealth Management LLC grew its stake in shares of Snap by 9.2% in the second quarter. Apollon Wealth Management LLC now owns 15,934 shares of the company’s stock worth $138,000 after acquiring an additional 1,340 shares in the last quarter. Vanguard Personalized Indexing Management LLC increased its position in shares of Snap by 2.5% during the second quarter. Vanguard Personalized Indexing Management LLC now owns 70,608 shares of the company’s stock worth $614,000 after acquiring an additional 1,743 shares during the period. Finally, CWM LLC increased its position in shares of Snap by 39.8% during the second quarter. CWM LLC now owns 257,763 shares of the company’s stock worth $2,240,000 after acquiring an additional 73,393 shares during the period. 47.52% of the stock is currently owned by hedge funds and other 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.