Snap Inc. (NYSE:SNAP) Receives Average Recommendation of “Hold” from Brokerages

Shares of Snap Inc. (NYSE:SNAP) have earned an average recommendation of “Hold” from the thirty-five analysts that are presently covering the company, Marketbeat.com reports. Two research analysts have rated the stock with a sell rating, twenty-two have assigned a hold rating, ten have issued a buy rating and one has issued a strong buy rating on the company. The average 12-month price objective among brokers that have covered the stock in the last year is $7.9056.

Several equities research analysts have issued reports on the stock. Weiss Ratings reiterated a “sell (e+)” rating on shares of Snap in a report on Monday, April 20th. Canaccord Genuity Group reduced their price objective on shares of Snap from $7.00 to $6.00 and set a “hold” rating on the stock in a research note on Tuesday, April 14th. Loop Capital set a $8.00 target price on shares of Snap in a research report on Monday, February 23rd. KeyCorp raised shares of Snap from a “sector weight” rating to an “overweight” rating in a research note on Monday, April 27th. Finally, Sanford C. Bernstein lowered Snap from a “market perform” rating to a “market perform” rating in a research note on Monday, April 27th.

Insider Transactions at Snap

In related news, insider Ajit Mohan sold 44,785 shares of the company’s stock in a transaction on Monday, May 18th. The stock was sold at an average price of $5.60, for a total value of $250,796.00. Following the completion of the transaction, the insider directly owned 5,057,891 shares in the company, valued at approximately $28,324,189.60. This represents a 0.88% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. 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 the 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 transaction, 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 ownership of the stock. 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. In the last three months, insiders sold 2,900,631 shares of company stock valued at $16,054,989.

Institutional Investors Weigh In On Snap

A number of institutional investors have recently bought and sold shares of SNAP. Vanguard Group Inc. boosted its holdings in shares of Snap by 0.6% in the 4th quarter. Vanguard Group Inc. now owns 101,251,557 shares of the company’s stock valued at $817,100,000 after purchasing an additional 641,271 shares during the last quarter. Capital World Investors increased its holdings in shares of Snap by 1.4% during the 4th quarter. Capital World Investors now owns 88,452,006 shares of the company’s stock worth $713,808,000 after buying an additional 1,179,543 shares during the last quarter. Capital International Investors increased its holdings in shares of Snap by 0.3% during the 3rd quarter. Capital International Investors now owns 37,780,205 shares of the company’s stock worth $291,285,000 after buying an additional 95,989 shares during the last quarter. Alyeska Investment Group L.P. purchased a new position in shares of Snap in the 3rd quarter worth $176,697,000. Finally, Geode Capital Management LLC raised its position in shares of Snap by 3.6% in the 4th quarter. Geode Capital Management LLC now owns 13,525,119 shares of the company’s stock worth $108,711,000 after buying an additional 469,795 shares during the period. 47.52% of the stock is currently owned by hedge funds and other institutional investors.

Key Stories Impacting Snap

Here are the key news stories impacting Snap this week:

• Positive Sentiment: Snap unveiled its first consumer AR glasses, Specs, and is pitching them as a major step toward a “post-smartphone” future, which could improve long-term growth optionality if adoption builds. Snap bets on life beyond smartphones with $2,195 Specs augmented-reality glasses
• Positive Sentiment: CEO Evan Spiegel defended Specs as a long-term strategic investment, signaling Snap is not backing away from its AR roadmap despite pressure from activist investors. Snap CEO Spiegel defends Specs as long-term bet, pushes back against activist pressure
• Positive Sentiment: SNAP saw unusually large call option activity, which can indicate traders are positioning for a move higher on optimism around the company’s product launch and strategic direction.
• Neutral Sentiment: Snap also announced new safety safeguards for users aged 13 to 15, limiting content sharing and creating dedicated profiles for users under 16, which may help compliance and brand trust but is unlikely to be an immediate revenue driver. SNAP Introduces New Safeguards for Younger Users
• Negative Sentiment: The $2,195 price tag on Specs is generating skepticism, raising questions about whether the device can gain meaningful consumer traction beyond early adopters and developers. Snap finally unveiled its Specs AR glasses, and the $2,195 price tag is raising eyebrows

Snap Price Performance

Shares of NYSE:SNAP traded down $0.25 on Wednesday, hitting $4.91. The company had a trading volume of 16,795,779 shares, compared to its average volume of 50,571,523. The company has a current ratio of 3.53, a quick ratio of 3.53 and a debt-to-equity ratio of 1.67. Snap has a 52-week low of $3.81 and a 52-week high of $10.41. The business has a 50 day moving average of $5.64 and a 200 day moving average of $6.12. The company has a market cap of $8.29 billion, a PE ratio of -20.43 and a beta of 1.03.

Snap (NYSE:SNAP) last posted its quarterly earnings data on Wednesday, May 6th. The company reported ($0.05) EPS for the quarter, missing analysts’ consensus estimates of $0.09 by ($0.14). Snap had a negative return on equity of 18.92% and a negative net margin of 6.72%.The company had revenue of $1.53 billion for the quarter, compared to analysts’ expectations of $1.53 billion. During the same quarter in the prior year, the business posted ($0.08) EPS. The company’s revenue for the quarter was up 12.2% compared to the same quarter last year. As a group, equities analysts anticipate that Snap will post -0.06 earnings per share for the current fiscal year.

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.