Zacks Research Downgrades Snap (NYSE:SNAP) to Strong Sell

Snap (NYSE:SNAP) was downgraded by equities research analysts at Zacks Research from a “hold” rating to a “strong sell” rating in a research report issued to clients and investors on Monday,Zacks.com reports.

A number of other research firms have also weighed in on SNAP. Wall Street Zen lowered shares of Snap from a “buy” rating to a “hold” rating in a research report on Sunday, July 26th. UBS Group set a $6.00 price objective on shares of Snap in a report on Tuesday. Mizuho raised their target price on shares of Snap from $5.00 to $6.00 and gave the stock a “neutral” rating in a research note on Tuesday. Weiss Ratings restated a “sell (e+)” rating on shares of Snap in a report on Friday, July 17th. Finally, Rosenblatt Securities dropped their price target on Snap from $6.40 to $6.00 and set a “neutral” rating for the company in a research report on Tuesday. One analyst has rated the stock with a Strong Buy rating, eight have issued a Buy rating, twenty-four have issued a Hold rating and three have given a Sell rating to the company. According to data from MarketBeat, Snap has a consensus rating of “Hold” and an average target price of $7.65.

Snap Stock Up 14.3%

NYSE SNAP opened at $5.76 on Monday. The business has a fifty day moving average price of $4.96 and a 200 day moving average price of $5.33. Snap has a one year low of $3.81 and a one year high of $9.55. The company has a debt-to-equity ratio of 1.67, a quick ratio of 3.53 and a current ratio of 3.53. The company has a market cap of $9.73 billion, a P/E ratio of -24.00 and a beta of 1.03.

Snap (NYSE:SNAP) last released its earnings results on Monday, August 3rd. The company reported ($0.10) earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of ($0.12) by $0.02. The business had revenue of $1.60 billion during 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 14.16%. The company’s revenue for the quarter was up 18.9% compared to the same quarter last year. During the same quarter in the prior year, the firm earned ($0.16) earnings per share. Research analysts anticipate that Snap will post -0.07 EPS for the current fiscal year.

Insider Activity

In other Snap news, General Counsel Zachary M. Briers sold 129,493 shares of Snap stock in a transaction dated Monday, May 18th. The shares were sold at an average price of $5.60, for a total transaction of $725,160.80. Following the transaction, the general counsel directly owned 2,644,538 shares of the company’s stock, valued at $14,809,412.80. The trade was a 4.67% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CFO Douglas Hott sold 124,209 shares of Snap stock in a transaction dated Monday, May 18th. The stock was sold at an average price of $5.60, for a total transaction of $695,570.40. Following the transaction, the chief financial officer directly owned 2,571,149 shares in the company, valued at $14,398,434.40. This trade represents a 4.61% decrease in their ownership of the stock. 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. In the last 90 days, insiders have sold 2,868,059 shares of company stock worth $15,855,631.

Institutional Trading of Snap

A number of hedge funds and other institutional investors have recently made changes to their positions in the company. Allworth Financial LP raised its position in shares of Snap by 92.3% during the 3rd quarter. Allworth Financial LP now owns 3,293 shares of the company’s stock valued at $25,000 after buying an additional 1,581 shares during the period. Arax Advisory Partners lifted its holdings in Snap by 220.0% in the fourth quarter. Arax Advisory Partners now owns 3,309 shares of the company’s stock valued at $27,000 after acquiring an additional 2,275 shares during the last quarter. V Square Quantitative Management LLC purchased a new position in Snap in the fourth quarter worth approximately $29,000. EverSource Wealth Advisors LLC grew its position in Snap by 561.4% in the fourth quarter. EverSource Wealth Advisors LLC now owns 3,618 shares of the company’s stock worth $29,000 after acquiring an additional 3,071 shares during the period. Finally, Banque Cantonale Vaudoise acquired a new stake in Snap during the third quarter worth $39,000. Institutional investors and hedge funds own 47.52% of the company’s stock.

More Snap News

Here are the key news stories impacting Snap this week:

• Positive Sentiment: Q2 results exceeded expectations: Snap reported $1.60 billion in revenue, up 18.9% year over year and ahead of the $1.54 billion consensus estimate. Its $0.10-per-share loss was narrower than the expected $0.12 loss. Management also highlighted improving advertising trends, margin expansion, positive free cash flow and sharply higher adjusted EBITDA. Snap Inc. Announces Second Quarter 2026 Financial Results
• Positive Sentiment: Third-quarter outlook supported investor sentiment: Snap forecast revenue of approximately $1.7 billion, in line with consensus, with management citing stronger advertising demand, AI tools, subscription growth and spending tied to major events such as the FIFA World Cup. Shares rose sharply following the earnings release. Snap second quarter results lifted by improving advertising trends
• Positive Sentiment: Options activity indicates bullish positioning: Traders purchased an unusually large volume of Snap call options, suggesting increased speculative interest after the earnings rally. Stock Traders Buy High Volume of Snap Call Options
• Neutral Sentiment: Analyst views remain mixed: Wells Fargo and Cantor Fitzgerald raised their targets to $6, while Citigroup raised its target to $6.75. Truist cut its target to $7 from $8, and other firms retained neutral or market-perform ratings. The targets imply only modest upside from the current quotation.
• Neutral Sentiment: Technical traders are watching resistance: Snap has been approaching a potential resistance level after its earnings-driven move higher, which could lead to short-term volatility. Stock Of The Day: Is Snap Breaking Out?
• Negative Sentiment: Zacks downgraded Snap from “hold” to “strong sell,” adding fresh pressure after the post-earnings advance. Zacks.com
• Negative Sentiment: Specs demand remains uncertain: CEO Evan Spiegel avoided detailed comments on pre-orders for Snap’s smart glasses ahead of the planned September launch, leaving investors without clear evidence of consumer demand. Snap CEO sidesteps Specs pre-order questions

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.