Citigroup Has Lowered Expectations for Snap (NYSE:SNAP) Stock Price

Snap (NYSE:SNAP) had its price target cut by equities researchers at Citigroup from $6.75 to $6.00 in a report issued on Friday, Benzinga reports. The firm currently has a “neutral” rating on the stock. Citigroup‘s price objective suggests a potential upside of 20.70% from the stock’s previous close.

A number of other analysts have also recently issued reports on the stock. BMO Capital Markets reiterated an “outperform” rating on shares of Snap in a research note on Tuesday, August 4th. Benchmark restated a “hold” rating on shares of Snap in a research note on Tuesday, August 4th. UBS Group restated a “buy” rating on shares of Snap in a report on Thursday. Weiss Ratings reaffirmed a “sell (e+)” rating on shares of Snap in a research note on Thursday, October 15th. Finally, Royal Bank Of Canada reiterated a “sector perform” rating and issued a $8.00 price objective on shares of Snap in a report on Thursday, September 17th. One research analyst has rated the stock with a Strong Buy rating, eleven have assigned a Buy rating, twenty-three have given a Hold rating and two have given a Sell rating to the company. According to MarketBeat.com, the company currently has an average rating of “Hold” and an average target price of $7.31.

Snap Stock Down 2.3%

Snap stock traded down $0.12 during mid-day trading on Friday, hitting $4.97. The company’s stock had a trading volume of 40,415,692 shares, compared to its average volume of 45,545,051. The firm’s 50 day moving average is $5.75 and its 200 day moving average is $5.41. The company has a debt-to-equity ratio of 1.75, a current ratio of 2.94 and a quick ratio of 2.94. The company has a market cap of $8.41 billion, a PE ratio of -55.23 and a beta of 1.23. Snap has a 52-week low of $3.81 and a 52-week high of $9.13.

Snap (NYSE:SNAP) last posted its quarterly earnings results on Wednesday, November 4th. The company reported $0.03 EPS for the quarter. The business had revenue of $1.72 billion during the quarter, compared to analysts’ expectations of $1.73 billion. Snap had a negative net margin of 2.30% and a negative return on equity of 7.21%. The firm’s quarterly revenue was up 14.3% compared to the same quarter last year. During the same period last year, the company posted ($0.06) earnings per share. On average, analysts anticipate that Snap will post -0.03 earnings per share for the current year.

Insider Buying and Selling

In related news, General Counsel Zachary Briers sold 11,257 shares of the business’s stock in a transaction that occurred on Thursday, September 3rd. The stock was sold at an average price of $6.00, for a total value of $67,542.00. Following the completion of the sale, the general counsel directly owned 2,345,534 shares in the company, valued at approximately $14,073,204. The trade was a 0.48% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, insider Ajit Mohan sold 6,797 shares of the company’s stock in a transaction that occurred on Wednesday, September 16th. The stock was sold at an average price of $5.82, for a total value of $39,558.54. Following the sale, the insider directly owned 4,965,300 shares of the company’s stock, valued at $28,898,046. The trade was a 0.14% decrease in their position. 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. Insiders have sold a total of 445,926 shares of company stock valued at $2,326,930 in the last quarter. Company insiders own 22.68% of the company’s stock.

Institutional Trading of Snap

Several large investors have recently modified their holdings of the company. Signaturefd LLC grew its stake in Snap by 68.9% in the 3rd quarter. Signaturefd LLC now owns 5,211 shares of the company’s stock valued at $28,000 after buying an additional 2,126 shares during the last quarter. Jacobi Capital Management LLC acquired a new position in Snap during the 3rd quarter worth $30,000. Fifth Third Bancorp lifted its position in Snap by 6,678.0% during the 1st quarter. Fifth Third Bancorp now owns 6,778 shares of the company’s stock worth $31,000 after acquiring an additional 6,678 shares during the last quarter. NFSG Corp lifted its position in Snap by 52.7% during the 1st quarter. NFSG Corp now owns 8,400 shares of the company’s stock worth $39,000 after acquiring an additional 2,900 shares during the last quarter. Finally, EverSource Wealth Advisors LLC boosted its holdings in Snap by 135.6% during the first quarter. EverSource Wealth Advisors LLC now owns 8,525 shares of the company’s stock valued at $39,000 after acquiring an additional 4,907 shares during the period. 47.52% of the stock is owned by institutional investors.

Snap News Roundup

Here are the key news stories impacting Snap this week:

• Positive Sentiment: Snapchat+ surpassed 30 million paid subscribers, adding 5 million since February and providing a growing source of subscription revenue beyond advertising. Snapchat surpasses 30M paid subscribers
• Positive Sentiment: Snap reportedly beat adjusted earnings expectations, while revenue grew 14.3% year over year. That improvement was not enough to offset the top-line miss. Snap Shares Fall More Than 10% as Revenue and User Growth Miss Forecasts Despite Higher Earnings
• Neutral Sentiment: Unusually high call-option activity—105,767 contracts, about 51% above typical volume—may signal bullish positioning, but options trading can be speculative and does not establish a change in fundamentals. Traders Purchase High Volume of Call Options on Snap
• Negative Sentiment: Third-quarter revenue was $1.72 billion, below the $1.73 billion estimate, and daily active users also missed forecasts. The shortfalls raised concerns about user momentum and the pace of an advertising recovery. Snap shares fall as revenue and daily users miss estimates
• Negative Sentiment: Several firms cut price targets: JPMorgan lowered its target to $5 and assigned an underweight rating; Cantor Fitzgerald cut to $5 and kept a neutral rating; UBS reduced its target to $6 and stayed neutral. Barclays also halved its target to $8, though it retained an overweight rating. The cluster of reductions underscores lowered expectations. JPMorgan analyst recommendations

About Snap

Snap Inc is a technology and social media company best known for Snapchat, a visual messaging and social networking application. Snapchat enables users to communicate through photos, videos, messages and Stories, while offering creative tools such as augmented reality (AR) Lenses and filters. The platform also includes features such as Snap Map, Spotlight and content from publishers and creators.

Snap generates most of its revenue from digital advertising, including video, augmented reality and other advertising formats delivered across Snapchat.