Snap (NYSE:SNAP) Shares Gap Down on Analyst Downgrade

Snap Inc. (NYSE:SNAP)’s stock price gapped down prior to trading on Thursday after Cantor Fitzgerald lowered their price target on the stock from $6.00 to $5.00. The stock had previously closed at $5.92, but opened at $5.29. Cantor Fitzgerald currently has a neutral rating on the stock. Snap shares last traded at $5.1880, with a volume of 13,129,486 shares traded.

A number of other equities analysts have also commented on SNAP. Guggenheim reiterated a “neutral” rating on shares of Snap in a research note on Wednesday, September 2nd. Stifel Nicolaus set a $7.50 target price on shares of Snap in a research note on Tuesday, August 4th. Rosenblatt Securities dropped their target price on shares of Snap from $6.40 to $6.00 and set a “neutral” rating for the company in a research note on Tuesday, August 4th. Piper Sandler reiterated a “neutral” rating on shares of Snap in a research report on Tuesday, August 4th. Finally, Susquehanna reissued a “neutral” rating on shares of Snap in a report on Tuesday, August 4th. One analyst has rated the stock with a Strong Buy rating, eleven have issued a Buy rating, twenty-two have issued a Hold rating and two have assigned a Sell rating to the stock. Based on data from MarketBeat.com, the company currently has a consensus rating of “Hold” and an average target price of $7.68.

Insider Buying and Selling

In other Snap news, CFO Douglas Hott sold 131,884 shares of the firm’s stock in a transaction on Monday, August 17th. The stock was sold at an average price of $5.20, for a total value of $685,796.80. Following the sale, the chief financial officer owned 2,324,563 shares of the company’s stock, valued at approximately $12,087,727.60. This trade represents a 5.37% decrease in their position. The sale 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, General Counsel Zachary Briers sold 11,257 shares of the firm’s stock in a transaction dated Thursday, September 3rd. The shares were 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 $14,073,204. This trade represents a 0.48% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last quarter, insiders have sold 445,926 shares of company stock valued at $2,326,930. 22.68% of the stock is owned by insiders.

Snap News Summary

Here are the key news stories impacting Snap this week:

• Positive Sentiment: Snapchat+ subscriptions reached 30 million, up 5 million since February, supporting the company’s efforts to build revenue beyond advertising. Reports also described improved earnings and a return to net profitability, though earnings comparisons varied by source. Snapchat surpasses 30M paid subscribers
• Neutral Sentiment: Snap forecast fourth-quarter revenue of $1.95 billion to $1.99 billion. The company also announced a change in how it measures user engagement, which could make comparisons with past user metrics less straightforward. Snap shares fall over 10% on third-quarter earnings miss
• Negative Sentiment: Third-quarter revenue was $1.72 billion, up 14% year over year but below the $1.73 billion estimate; daily active users also missed forecasts. The shortfall renewed concerns about the pace of Snap’s advertising recovery and weighed on investor confidence. Snap stock falls as revenue and user growth miss estimates
• Negative Sentiment: Cantor Fitzgerald cut its price target from $6 to $5 and maintained a neutral rating, signaling reduced upside expectations. Cantor Fitzgerald price target update

Hedge Funds Weigh In On Snap

A number of hedge funds have recently bought and sold shares of SNAP. Saba Capital Management L.P. grew its stake in Snap by 232.5% in the first quarter. Saba Capital Management L.P. now owns 4,727,808 shares of the company’s stock valued at $21,748,000 after acquiring an additional 3,306,024 shares during the period. Empyrean Capital Partners LP purchased a new position in shares of Snap in the 1st quarter worth approximately $25,300,000. Assenagon Asset Management S.A. boosted its holdings in shares of Snap by 1,191.8% in the 2nd quarter. Assenagon Asset Management S.A. now owns 3,903,141 shares of the company’s stock worth $17,330,000 after buying an additional 3,601,002 shares during the last quarter. Curated Wealth Partners LLC increased its stake in shares of Snap by 540.0% during the 3rd quarter. Curated Wealth Partners LLC now owns 544,828 shares of the company’s stock worth $2,942,000 after purchasing an additional 459,704 shares during the last quarter. Finally, First Trust Advisors LP increased its position in Snap by 302.9% in the first quarter. First Trust Advisors LP now owns 389,736 shares of the company’s stock worth $1,793,000 after buying an additional 293,003 shares during the last quarter. Institutional investors own 47.52% of the company’s stock.

Snap Stock Down 12.9%

The firm has a market capitalization of $8.72 billion, a P/E ratio of -28.59 and a beta of 1.23. The company has a debt-to-equity ratio of 1.75, a quick ratio of 2.94 and a current ratio of 2.94. The stock has a 50 day moving average of $5.76 and a 200-day moving average of $5.42.

Snap (NYSE:SNAP) last posted its quarterly earnings results on Thursday, November 5th. The company reported $0.03 EPS for the quarter. Snap had a negative return on equity of 14.61% and a negative net margin of 4.90%. The firm had revenue of $1.72 billion during the quarter, compared to analyst estimates of $1.73 billion. During the same period last year, the company earned ($0.06) earnings per share. The business’s revenue for the quarter was up 14.3% on a year-over-year basis. Research analysts predict that Snap Inc. will post -0.03 earnings per share for the current fiscal year.

Snap Company Profile

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.