Snap (NYSE:SNAP) Upgraded by Freedom Capital to Strong-Buy Rating

Freedom Capital upgraded shares of Snap (NYSE:SNAP) from a hold rating to a strong-buy rating in a report issued on Tuesday morning,Zacks.com reports.

Several other research analysts have also recently weighed in on SNAP. Wall Street Zen cut shares of Snap from a “buy” rating to a “hold” rating in a report on Sunday, July 26th. Wells Fargo & Company raised 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. Cantor Fitzgerald lifted their target price on shares of Snap from $5.00 to $6.00 and gave the stock a “neutral” rating in a research report on Tuesday. Citizens Jmp reiterated a “market perform” rating on shares of Snap in a research note on Tuesday. Finally, Piper Sandler reissued a “neutral” rating on shares of Snap in a report on Tuesday. Two analysts have rated the stock with a Strong Buy rating, eight have assigned a Buy rating, twenty-three have assigned a Hold rating and three have assigned a Sell rating to the stock. According to data from MarketBeat, the stock presently has an average rating of “Hold” and a consensus target price of $7.65.

Snap Price Performance

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

Snap (NYSE:SNAP) last issued its earnings results on Monday, August 3rd. The company reported ($0.10) earnings per share 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 return on equity of 14.61% and a negative net margin of 4.90%.Snap’s revenue was up 18.9% on a year-over-year basis. During the same quarter in the previous year, the firm earned ($0.16) EPS. On average, sell-side analysts forecast that Snap will post -0.07 EPS for the current year.

Insider Transactions at Snap

In related news, CTO Robert C. Murphy sold 2,000,000 shares of the business’s stock in a transaction that occurred on Wednesday, May 13th. The shares were sold at an average price of $5.44, for a total transaction of $10,880,000.00. Following the completion of the sale, the chief technology officer directly owned 47,012,324 shares in the company, valued at approximately $255,747,042.56. The trade was a 4.08% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, CFO Douglas Hott sold 124,209 shares of the company’s stock in a transaction that occurred on Monday, May 18th. The shares were sold at an average price of $5.60, for a total transaction of $695,570.40. Following the sale, the chief financial officer directly owned 2,571,149 shares of the company’s stock, valued at approximately $14,398,434.40. This represents a 4.61% 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. Over the last ninety days, insiders have sold 2,868,059 shares of company stock worth $15,855,631. 22.68% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Snap

A number of hedge funds have recently modified their holdings of SNAP. Saba Capital Management L.P. raised its holdings in Snap by 232.5% in the 1st quarter. Saba Capital Management L.P. now owns 4,727,808 shares of the company’s stock worth $21,748,000 after purchasing an additional 3,306,024 shares during the period. Empyrean Capital Partners LP purchased a new position in Snap during the first quarter valued at $25,300,000. Leonteq Securities AG bought a new stake in Snap during the fourth quarter valued at about $1,620,000. Eurizon Capital SGR S.p.A. purchased a new stake in Snap in the fourth quarter worth about $1,629,000. Finally, Marsico Capital Management LLC purchased a new stake in Snap in the fourth quarter worth about $5,620,000. Institutional investors own 47.52% of the company’s stock.

Trending Headlines about Snap

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.