Snap (NYSE:SNAP) Downgraded by Wall Street Zen to “Hold”

Snap (NYSE:SNAP) was downgraded by analysts at Wall Street Zen from a “buy” rating to a “hold” rating in a research note issued on Sunday.

A number of other brokerages also recently issued reports on SNAP. BMO Capital Markets upped their price objective on shares of Snap from $13.00 to $15.00 and gave the stock an “outperform” rating in a research report on Wednesday, April 15th. Sanford C. Bernstein reissued a “market perform” rating and set a $5.00 target price on shares of Snap in a research report on Tuesday. Cantor Fitzgerald restated a “neutral” rating and issued a $5.00 target price on shares of Snap in a research note on Monday, July 20th. Freedom Capital lowered Snap from a “strong-buy” rating to a “hold” rating in a report on Tuesday, May 12th. Finally, Truist Financial set a $8.00 price target on Snap in a report on Wednesday, June 17th. One equities research analyst has rated the stock with a Strong Buy rating, eight have assigned a Buy rating, twenty-five have given a Hold rating and two have issued a Sell rating to the stock. Based on data from MarketBeat.com, the company currently has an average rating of “Hold” and an average price target of $7.23.

Snap Stock Down 1.5%

SNAP stock opened at $4.34 on Friday. The stock’s 50 day moving average is $5.07 and its 200-day moving average is $5.52. Snap has a twelve month low of $3.81 and a twelve month high of $9.90. The firm has a market capitalization of $7.34 billion, a PE ratio of -18.10 and a beta of 1.05. The company has a quick ratio of 3.53, a current ratio of 3.53 and a debt-to-equity ratio of 1.67.

Snap (NYSE:SNAP) last released its quarterly earnings results on Wednesday, May 6th. The company reported ($0.05) EPS for the quarter, missing analysts’ consensus estimates of $0.09 by ($0.14). The company had revenue of $1.53 billion during the quarter, compared to analysts’ expectations of $1.53 billion. Snap had a negative net margin of 6.72% and a negative return on equity of 18.92%. The company’s quarterly revenue was up 12.2% compared to the same quarter last year. During the same period in the previous year, the company posted ($0.08) earnings per share. Sell-side analysts expect that Snap will post -0.07 EPS for the current fiscal year.

Insider Buying and Selling at Snap

In other Snap news, CTO Robert C. Murphy sold 343,945 shares of the company’s 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 sale, the chief technology officer owned 4,963,581 shares of the company’s stock, valued at $29,185,856.28. This represents a 6.48% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Also, insider Ajit Mohan sold 6,923 shares of the company’s stock in a transaction on Tuesday, June 16th. The shares were sold at an average price of $5.58, for a total transaction of $38,630.34. Following the sale, the insider owned 5,050,968 shares of the company’s stock, valued at $28,184,401.44. This represents a 0.14% decrease in their ownership of the stock. 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. Over the last ninety days, insiders have sold 2,868,059 shares of company stock valued at $15,855,631. 22.68% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Snap

Several hedge funds and other institutional investors have recently added to or reduced their stakes in SNAP. Handelsbanken Fonder AB boosted its holdings in Snap by 21.2% in the second quarter. Handelsbanken Fonder AB now owns 352,900 shares of the company’s stock worth $1,567,000 after purchasing an additional 61,700 shares during the last quarter. Gradient Investments LLC boosted its holdings in shares of Snap by 7.1% in the 2nd quarter. Gradient Investments LLC now owns 188,827 shares of the company’s stock worth $838,000 after purchasing an additional 12,492 shares during the period. Assenagon Asset Management S.A. boosted its position in shares of Snap by 1,191.8% during the second quarter. Assenagon Asset Management S.A. now owns 3,903,141 shares of the company’s stock valued at $17,330,000 after buying an additional 3,601,002 shares during the period. Fermata Advisors LLC bought a new stake in Snap during the 2nd quarter valued at about $75,000. Finally, Dynamic Advisor Solutions LLC bought a new position in shares of Snap during the 2nd quarter worth $47,000. 47.52% of the stock is owned by institutional investors.

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.