Snap (NYSE:SNAP) Reaches New 1-Year Low – Here’s Why

Snap Inc. (NYSE:SNAP) shares reached a new 52-week low during trading on Tuesday . The company traded as low as $4.71 and last traded at $4.6750, with a volume of 8442541 shares changing hands. The stock had previously closed at $4.83.

Wall Street Analyst Weigh In

A number of equities analysts recently issued reports on SNAP shares. Rosenblatt Securities lowered their price target on Snap from $9.50 to $6.40 and set a “neutral” rating for the company in a report on Thursday, February 5th. Guggenheim restated a “neutral” rating and issued a $6.50 target price on shares of Snap in a report on Thursday, February 5th. Weiss Ratings reaffirmed a “sell (e+)” rating on shares of Snap in a research report on Wednesday, January 21st. Arete Research set a $7.30 price target on shares of Snap and gave the company a “buy” rating in a research report on Tuesday, February 10th. Finally, Cantor Fitzgerald decreased their price objective on shares of Snap from $9.00 to $7.00 and set a “neutral” rating for the company in a research note on Thursday, February 5th. One investment analyst has rated the stock with a Strong Buy rating, four have given a Buy rating, twenty-one have assigned a Hold rating and three have issued a Sell rating to the stock. According to data from MarketBeat, Snap presently has an average rating of “Hold” and a consensus target price of $8.43.

Snap Trading Up 2.3%

The business’s 50 day simple moving average is $7.13 and its 200 day simple moving average is $7.56. The company has a debt-to-equity ratio of 1.53, a current ratio of 3.56 and a quick ratio of 3.56. The company has a market capitalization of $8.43 billion, a price-to-earnings ratio of -18.48 and a beta of 0.83.

Snap (NYSE:SNAP) last announced its earnings results on Wednesday, February 4th. The company reported $0.03 earnings per share for the quarter, missing the consensus estimate of $0.15 by ($0.12). The business had revenue of $1.72 billion for the quarter, compared to analyst estimates of $1.70 billion. Snap had a negative return on equity of 20.72% and a negative net margin of 7.76%.Snap’s quarterly revenue was up 10.2% on a year-over-year basis. During the same quarter last year, the company posted $0.01 EPS. Research analysts anticipate that Snap Inc. will post -0.3 EPS for the current year.

Insider Buying and Selling

In other news, insider Ajit Mohan sold 28,137 shares of the business’s stock in a transaction that occurred on Tuesday, December 16th. The stock was sold at an average price of $7.21, for a total value of $202,867.77. Following the transaction, the insider owned 5,298,664 shares of the company’s stock, valued at approximately $38,203,367.44. The trade was a 0.53% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, CTO Robert C. Murphy sold 1,000,000 shares of the stock in a transaction on Tuesday, February 10th. The stock was sold at an average price of $5.36, for a total value of $5,360,000.00. Following the sale, the chief technology officer directly owned 49,313,775 shares of the company’s stock, valued at approximately $264,321,834. This represents a 1.99% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last quarter, insiders have sold 2,121,108 shares of company stock valued at $11,527,802. Company insiders own 22.68% of the company’s stock.

Institutional Trading of Snap

Several hedge funds and other institutional investors have recently made changes to their positions in the company. Vanguard Group Inc. raised its holdings in Snap by 0.6% during the fourth quarter. Vanguard Group Inc. now owns 101,251,557 shares of the company’s stock worth $817,100,000 after purchasing an additional 641,271 shares in the last quarter. Capital World Investors raised its stake in shares of Snap by 1.4% during the 4th quarter. Capital World Investors now owns 88,452,006 shares of the company’s stock worth $713,808,000 after buying an additional 1,179,543 shares in the last quarter. Capital International Investors raised its stake in shares of Snap by 0.3% during the 3rd quarter. Capital International Investors now owns 37,780,205 shares of the company’s stock worth $291,285,000 after buying an additional 95,989 shares in the last quarter. Alyeska Investment Group L.P. acquired a new stake in shares of Snap in the 3rd quarter valued at approximately $176,697,000. Finally, Geode Capital Management LLC boosted its stake in shares of Snap by 3.6% in the fourth quarter. Geode Capital Management LLC now owns 13,525,119 shares of the company’s stock valued at $108,711,000 after buying an additional 469,795 shares in the last quarter. Hedge funds and other institutional investors own 47.52% of the company’s stock.

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.