Snap (SNAP) Given “Sell” Rating at Pivotal Research
“We see the advertiser expansion as an important source of revenue diversification and reflects Snap’s capacity to grow revenue through a broadening of its addressable market. On the other hand, we can infer this result at least partially reflects some degree of deceleration in spending from large brands, which generally view Snap as a niche platform rather than something core to their typical campaigns. However, comments indicating that “of the Top 100 Ad Age Advertisers that started advertising with (Snap) in Q1 of 2016 or earlier, each one of them, at a parent level, also spent with (Snap) in 2017 and over 90 percent of them spent in every quarter of 2017.” Although it does not convey the growth rate of like-for-like advertisers, we think it does reflect a degree of durability for the platform among brands who use it.”,” the firm’s analyst wrote.
Other analysts have also issued research reports about the stock. Vetr lowered shares of Snap from a strong-buy rating to a buy rating and set a $16.95 price target for the company. in a research note on Monday, October 30th. Drexel Hamilton restated a buy rating and set a $28.00 price target on shares of Snap in a research note on Friday, December 15th. Credit Suisse Group restated a buy rating and set a $18.00 price target on shares of Snap in a research note 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 target for the company in a research note 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 target for the company in a research note on Wednesday. Fourteen research analysts have rated the stock with a sell rating, nineteen have given a hold rating and fifteen have assigned a buy rating to the company’s stock. The company currently has an average rating of Hold and a consensus price target of $18.25.
Snap (NYSE:SNAP) last announced its quarterly earnings results on Tuesday, November 7th. The company reported ($0.14) EPS for the quarter, beating the Zacks’ consensus estimate of ($0.31) by $0.17. The business had revenue of $207.90 million during the quarter, compared to analyst estimates of $236.71 million. Snap had a negative net margin of 417.61% and a negative return on equity of 97.08%. The business’s revenue for the quarter was up 62.2% compared to the same quarter last year. analysts forecast that Snap will post -1.09 EPS for the current fiscal year.
In other Snap news, CEO Evan Spiegel sold 739,663 shares of the company’s stock in a transaction dated Friday, December 1st. The shares were sold at an average price of $13.63, for a total transaction of $10,081,606.69. Following the sale, the chief executive officer now directly owns 85,744,509 shares of the company’s stock, valued at $1,168,697,657.67. The transaction was disclosed in a legal filing 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 dated Tuesday, November 14th. The shares were sold at an average price of $12.53, for a total transaction of $313,250.00. The disclosure for this sale can be found here. Insiders sold a total of 1,885,626 shares of company stock worth $25,814,031 over the last three months.
A number of hedge funds and other institutional investors have recently added to or reduced their stakes in SNAP. State Treasurer State of Michigan bought a new position in shares of Snap in the third quarter worth approximately $15,714,000. Hodges Capital Management Inc. bought a new position in Snap during the third quarter valued at approximately $7,997,000. Lehman Financial Resources Inc. bought a new position in Snap during the third quarter valued at approximately $3,275,000. Vanguard Group Inc. grew its position in Snap by 23.7% during the second quarter. Vanguard Group Inc. now owns 8,353,729 shares of the company’s stock valued at $148,446,000 after acquiring an additional 1,601,170 shares during the last quarter. Finally, TB Alternative Assets Ltd. grew its position in Snap by 117.1% during the fourth quarter. TB Alternative Assets Ltd. now owns 546,600 shares of the company’s stock valued at $7,986,000 after acquiring an additional 294,800 shares during the last quarter. 18.97% of the stock is currently owned by institutional investors and hedge funds.
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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