Snap (NYSE:SNAP) Upgraded at Freedom Capital

Snap (NYSE:SNAP) was upgraded by stock analysts at Freedom Capital from a “hold” rating to a “strong-buy” rating in a research note issued to investors on Tuesday,Zacks.com reports.

Other analysts also recently issued reports about the stock. KeyCorp upgraded shares of Snap from a “sector weight” rating to an “overweight” rating in a research report on Monday, April 27th. Wells Fargo & Company upped their target price on shares of Snap from $5.00 to $6.00 and gave the stock an “equal weight” rating in a report on Tuesday. JPMorgan Chase & Co. cut their price target on Snap from $7.00 to $6.00 and set an “underweight” rating for the company in a research note on Thursday, May 7th. Sanford C. Bernstein reissued a “market perform” rating and set a $5.00 price target on shares of Snap in a report on Tuesday, July 21st. Finally, BNP Paribas Exane downgraded Snap to a “neutral” rating in a research report on Monday, April 27th. Two analysts have rated the stock with a Strong Buy rating, eight have issued a Buy rating, twenty-three have issued a Hold rating and three have issued a Sell rating to the stock. Based on data from MarketBeat.com, the company has an average rating of “Hold” and an average target price of $7.65.

Snap Trading Down 2.2%

Snap stock opened at $5.21 on Tuesday. Snap has a 12-month low of $3.81 and a 12-month high of $9.28. The firm has a market capitalization of $8.81 billion, a price-to-earnings ratio of -28.97 and a beta of 1.03. The firm has a 50 day moving average of $4.93 and a 200 day moving average of $5.29. The company has a current ratio of 2.94, a quick ratio of 3.53 and a debt-to-equity ratio of 1.75.

Snap (NYSE:SNAP) last issued its quarterly earnings results on Monday, August 3rd. The company reported ($0.10) earnings per share for the quarter, beating the consensus estimate of ($0.12) by $0.02. The business had revenue of $1.60 billion for the quarter, compared to the consensus estimate of $1.54 billion. Snap had a negative net margin of 4.90% and a negative return on equity of 14.61%. The company’s revenue for the quarter was up 18.9% on a year-over-year basis. During the same quarter in the previous year, the firm earned ($0.16) earnings per share. As a group, research analysts predict that Snap will post -0.07 earnings per share for the current year.

Insider Activity at Snap

In other news, CFO Douglas Hott sold 114,702 shares of the firm’s stock in a transaction that occurred on Tuesday, May 19th. The stock was sold at an average price of $5.67, for a total value of $650,360.34. Following the completion of the sale, the chief financial officer directly owned 2,456,447 shares of the company’s stock, valued at $13,928,054.49. This trade represents a 4.46% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CTO Robert C. Murphy sold 343,945 shares of Snap stock in a transaction that occurred on Friday, May 29th. The stock was sold at an average price of $5.88, for a total value of $2,022,396.60. Following the completion of the transaction, the chief technology officer owned 4,963,581 shares of the company’s stock, valued at approximately $29,185,856.28. This trade represents a 6.48% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold a total of 2,868,059 shares of company stock valued at $15,855,631 over the last ninety days. 22.68% of the stock is currently owned by company insiders.

Institutional Trading of Snap

Several hedge funds and other institutional investors have recently bought and sold shares of the stock. Allworth Financial LP lifted its position in Snap by 92.3% in the third 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 last quarter. Arax Advisory Partners increased its position in Snap by 220.0% during 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 stake in shares of Snap in the fourth quarter valued at $29,000. EverSource Wealth Advisors LLC raised its stake in shares of Snap by 561.4% in the fourth quarter. EverSource Wealth Advisors LLC now owns 3,618 shares of the company’s stock valued at $29,000 after acquiring an additional 3,071 shares during the period. Finally, Banque Cantonale Vaudoise bought a new stake in shares of Snap in the 3rd quarter worth about $39,000. Hedge funds and other institutional investors own 47.52% of the company’s stock.

More Snap News

Here are the key news stories impacting Snap this week:

• Positive Sentiment: Better-than-expected Q2 results support turnaround hopes. Snap reported adjusted EPS of $(0.10), ahead of the $(0.12) consensus estimate, while revenue of $1.60 billion exceeded forecasts and increased 18.9% year over year. The results have strengthened the case that advertising and user-growth improvements could support a recovery. Snap: Strong Q2 Earnings Bolster Hopes Of A Turnaround
• Positive Sentiment: Several analysts see upside. Cantor Fitzgerald issued a bullish forecast, Wells Fargo said the stock is expected to rise, and Citigroup raised its price target to $6.75. Heavy trading in Snap call options also indicates increased speculative interest following the earnings report. Cantor Fitzgerald Forecasts Strong Price Appreciation Wells Fargo Analyst Forecast Citigroup Raises Price Target
• Neutral Sentiment: Analyst views remain divided. Citizens JMP reiterated a Market Perform rating, suggesting the earnings improvement may already be reflected in the stock. A speculative article about a possible future acquisition of Snap offers no confirmed transaction or takeover discussions. Citizens JMP Reiterates Market Perform Who Might Buy Snap If Its Founders Ever Decide to Sell
• Negative Sentiment: Bearish ratings are limiting enthusiasm. Rosenblatt Securities issued a pessimistic forecast, while Zacks Research downgraded Snap to “Strong Sell.” Snap also remains unprofitable, with analysts expecting a loss for the full year, and its shares are near the 200-day moving average after retreating from the post-earnings surge. Rosenblatt Pessimistic Forecast Zacks Downgrade

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.