Snap (NYSE:SNAP) Hits New 1-Year Low – What’s Next?

Snap Inc. (NYSE:SNAP)’s stock price reached a new 52-week low on Thursday . The company traded as low as $4.52 and last traded at $4.5550, with a volume of 4906601 shares traded. The stock had previously closed at $4.62.

Analyst Upgrades and Downgrades

A number of brokerages have weighed in on SNAP. Rosenblatt Securities reduced their price target on shares of Snap from $9.50 to $6.40 and set a “neutral” rating on the stock in a research report on Thursday, February 5th. BNP Paribas Exane began coverage on Snap in a report on Wednesday, January 14th. They set a “strong sell” rating on the stock. Cantor Fitzgerald reduced their price target on Snap from $9.00 to $7.00 and set a “neutral” rating on the stock in a research report on Thursday, February 5th. Morgan Stanley decreased their price target on Snap from $9.50 to $6.50 and set an “equal weight” rating for the company in a report on Sunday, February 22nd. Finally, Sanford C. Bernstein reaffirmed a “market perform” rating and issued a $8.00 price objective on shares of Snap in a research report on Thursday, February 5th. One research analyst has rated the stock with a Strong Buy rating, five have given a Buy rating, twenty 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 an average price target of $8.17.

Snap Stock Performance

The company’s fifty day simple moving average is $5.98 and its two-hundred day simple moving average is $7.22. The company has a market capitalization of $7.66 billion, a price-to-earnings ratio of -16.83 and a beta of 0.83. The company has a debt-to-equity ratio of 1.53, a quick ratio of 3.56 and a current ratio of 3.56.

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

Insider Activity

In other news, insider Ajit Mohan sold 27,743 shares of the business’s stock in a transaction that occurred on Monday, March 16th. The stock was sold at an average price of $4.59, for a total value of $127,340.37. Following the completion of the sale, the insider directly owned 5,130,734 shares in the company, valued at approximately $23,550,069.06. The trade was a 0.54% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, General Counsel Zachary M. Briers sold 68,620 shares of the company’s stock in a transaction that occurred on Wednesday, February 18th. The shares were sold at an average price of $4.73, for a total value of $324,572.60. Following the sale, the general counsel directly owned 2,785,468 shares in the company, valued at approximately $13,175,263.64. This represents a 2.40% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 2,570,641 shares of company stock valued at $13,436,343 over the last three months. Company insiders own 22.68% of the company’s stock.

Hedge Funds Weigh In On Snap

A number of hedge funds have recently added to or reduced their stakes in SNAP. Allworth Financial LP raised its holdings in shares of Snap by 92.3% during the third quarter. Allworth Financial LP now owns 3,293 shares of the company’s stock worth $25,000 after purchasing an additional 1,581 shares during the period. Oak Harvest Investment Services acquired a new position in shares of Snap in the 4th quarter valued at about $26,000. Arax Advisory Partners grew its position in shares of Snap by 220.0% during the 4th quarter. Arax Advisory Partners now owns 3,309 shares of the company’s stock valued at $27,000 after buying an additional 2,275 shares during the last quarter. V Square Quantitative Management LLC bought a new stake in shares of Snap during the 4th quarter valued at about $29,000. Finally, EverSource Wealth Advisors LLC raised its stake in Snap by 561.4% during the fourth quarter. EverSource Wealth Advisors LLC now owns 3,618 shares of the company’s stock worth $29,000 after acquiring an additional 3,071 shares during the period. Institutional investors and hedge funds 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.