Snap (NYSE:SNAP)‘s stock had its “hold” rating reissued by analysts at Aegis in a research note issued to investors on Thursday. They presently have a $18.00 target price on the stock. Aegis’ price target suggests a potential downside of 13.25% from the stock’s previous close.
The analysts wrote, “We suspect that Snap was a beneficiary of ad dollars that could not make its way onto Facebook/Instagram due either to pricing or tight inventory. That may not recur in non-seasonal quarters. The silver lining for the future is that in tests of the app redesign, Snap saw increased ARPU, time spent, and engagement. Remains to be seen whether that applies all over. We remain at Hold but increased our price target to $18 from $13 on higher estimates. Salient Points: (1) gross margin increased 1,400bps QoQ to 36% and cash burn decreased 49% QoQ; (2) the retention rate of new Android users increased by ~20%; (3) over 90% of Snap Ads were bought programmatically, up from 10% in 4Q16, and 80% in 3Q17; (4) Snap Ad pricing decreased 15% QoQ and 70% YoY; (5) Snap Ad impressions grew 90% QoQ and 575% YoY; (6) each week, half of the U.S.””
Other research analysts also recently issued reports about the company. Vetr downgraded Snap from a “strong-buy” rating to a “buy” rating and set a $16.95 target price on the stock. in a report on Monday, October 30th. Drexel Hamilton restated a “buy” rating and issued a $28.00 price objective on shares of Snap in a research report on Friday, December 15th. Credit Suisse Group restated a “buy” rating and issued a $18.00 price objective on shares of Snap in a research report on Tuesday, January 9th. Zacks Investment Research upgraded shares of Snap from a “hold” rating to a “buy” rating and set a $16.00 price objective for the company in a research report on Wednesday, January 17th. Finally, Bank of America upgraded shares of Snap from a “neutral” rating to a “buy” rating and set a $16.00 price objective for the company in a research report on Wednesday. Fourteen equities research analysts have rated the stock with a sell rating, nineteen have assigned a hold rating and fifteen have issued a buy rating to the stock. The company presently has a consensus rating of “Hold” and an average target price of $18.25.
Snap (NYSE:SNAP) last announced its earnings results on Tuesday, November 7th. The company reported ($0.14) EPS for the quarter, topping the consensus estimate of ($0.31) by $0.17. The business had revenue of $207.90 million for the quarter, compared to the consensus estimate of $236.71 million. Snap had a negative return on equity of 97.08% and a negative net margin of 417.61%. Snap’s revenue was up 62.2% compared to the same quarter last year. equities research analysts anticipate that Snap will post -1.09 EPS for the current year.
In related news, CEO Evan Spiegel sold 739,663 shares of the company’s stock in a transaction on Friday, December 1st. The shares were sold at an average price of $13.63, for a total value of $10,081,606.69. Following the completion of the transaction, the chief executive officer now directly owns 85,744,509 shares of the company’s stock, valued at approximately $1,168,697,657.67. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. Also, Director Mitchell Lasky sold 25,000 shares of the company’s stock in a transaction on Tuesday, February 6th. The stock was sold at an average price of $13.98, for a total transaction of $349,500.00. The disclosure for this sale can be found here. In the last 90 days, insiders sold 1,885,626 shares of company stock valued at $25,814,031.
Hedge funds and other institutional investors have recently made changes to their positions in the stock. First Manhattan Co. boosted its stake in Snap by 384.5% in the 3rd quarter. First Manhattan Co. now owns 7,631 shares of the company’s stock worth $110,000 after purchasing an additional 6,056 shares during the period. Steward Partners Investment Advisory LLC boosted its stake in Snap by 967.3% in the 4th quarter. Steward Partners Investment Advisory LLC now owns 8,005 shares of the company’s stock worth $116,000 after purchasing an additional 7,255 shares during the period. WFG Advisors LP boosted its stake in Snap by 52.4% in the 2nd quarter. WFG Advisors LP now owns 7,377 shares of the company’s stock worth $131,000 after purchasing an additional 2,537 shares during the period. Nelson Roberts Investment Advisors LLC boosted its stake in Snap by 10,033.0% in the 3rd quarter. Nelson Roberts Investment Advisors LLC now owns 10,133 shares of the company’s stock worth $147,000 after purchasing an additional 10,033 shares during the period. Finally, Westwood Holdings Group Inc. acquired a new position in Snap in the 2nd quarter worth $148,000. 18.97% of the stock is owned by hedge funds and other institutional investors.
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Snap Inc, formerly Snapchat, Inc, is a camera company. The Company’s flagship product, Snapchat, is a camera application that helps people to communicate through short videos and images known as a Snap. The Company offers three ways for people to make Snaps: the Snapchat application, Publishers Tools that help its partners to create Publisher Stories, and Spectacles, its sunglasses that make Snaps.
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