Snap (NYSE:SNAP) Stock Rating Upgraded by Freedom Capital

Snap (NYSE:SNAP) was upgraded by research analysts at Freedom Capital from a “hold” rating to a “strong-buy” rating in a research note issued on Tuesday,Zacks.com reports.

Other equities research analysts also recently issued research reports about the company. Canaccord Genuity Group cut their price target on Snap from $7.00 to $6.00 and set a “hold” rating for the company in a report on Tuesday, April 14th. The Goldman Sachs Group reiterated a “neutral” rating and issued a $6.50 price objective on shares of Snap in a report on Tuesday. JPMorgan Chase & Co. dropped their price objective on shares of Snap from $7.00 to $6.00 and set an “underweight” rating on the stock in a research report on Thursday, May 7th. UBS Group set a $6.00 target price on shares of Snap in a research note on Tuesday. Finally, BMO Capital Markets reaffirmed an “outperform” rating on shares of Snap in a report on Tuesday. Two analysts have rated the stock with a Strong Buy rating, eight have given a Buy rating, twenty-three have assigned a Hold rating and three have given a Sell rating to the company’s stock. According to data from MarketBeat.com, the stock currently has a consensus rating of “Hold” and an average price target of $7.65.

Snap Stock Performance

SNAP opened at $5.21 on Tuesday. Snap has a 12-month low of $3.81 and a 12-month high of $9.28. The stock has a market cap of $8.81 billion, a price-to-earnings ratio of -28.97 and a beta of 1.03. The business has a 50 day moving average of $4.93 and a 200-day moving average of $5.29. The company has a quick ratio of 3.53, a current ratio of 2.94 and a debt-to-equity ratio of 1.75.

Snap (NYSE:SNAP) last issued its earnings results on Monday, August 3rd. The company reported ($0.10) EPS for the quarter, topping the consensus estimate of ($0.12) by $0.02. The company had revenue of $1.60 billion during the quarter, compared to the consensus estimate of $1.54 billion. Snap had a negative return on equity of 14.61% and a negative net margin of 4.90%.The firm’s revenue for the quarter was up 18.9% compared to the same quarter last year. During the same period in the previous year, the company posted ($0.16) EPS. On average, equities research analysts expect that Snap will post -0.07 earnings per share for the current year.

Insiders Place Their Bets

In other Snap news, CTO Robert C. Murphy sold 343,945 shares of the company’s stock in a transaction 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 transaction, the chief technology officer directly owned 4,963,581 shares of the company’s stock, valued at $29,185,856.28. This represents a 6.48% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through this hyperlink. Also, insider Ajit Mohan sold 6,923 shares of the stock in a transaction on Tuesday, June 16th. The stock was sold at an average price of $5.58, for a total value of $38,630.34. Following the transaction, the insider owned 5,050,968 shares in the company, valued at $28,184,401.44. The trade was a 0.14% decrease in their position. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold a total of 2,868,059 shares of company stock worth $15,855,631 over the last three months. 22.68% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Snap

Hedge funds have recently bought and sold shares of the business. Mackenzie Financial Corp increased its position in shares of Snap by 5.1% during the 3rd quarter. Mackenzie Financial Corp now owns 27,638 shares of the company’s stock valued at $213,000 after purchasing an additional 1,349 shares during the last quarter. WealthCollab LLC lifted its position in Snap by 1.2% in the 4th quarter. WealthCollab LLC now owns 115,390 shares of the company’s stock worth $931,000 after buying an additional 1,369 shares during the last quarter. Alliancebernstein L.P. lifted its position in Snap by 0.3% in the 3rd quarter. Alliancebernstein L.P. now owns 414,416 shares of the company’s stock worth $3,195,000 after buying an additional 1,396 shares during the last quarter. Orion Porfolio Solutions LLC boosted its stake in Snap by 8.3% in the second quarter. Orion Porfolio Solutions LLC now owns 18,913 shares of the company’s stock worth $164,000 after buying an additional 1,451 shares in the last quarter. Finally, Allworth Financial LP boosted its stake in Snap by 92.3% in the third quarter. Allworth Financial LP now owns 3,293 shares of the company’s stock worth $25,000 after buying an additional 1,581 shares in the last quarter. 47.52% of the stock is owned by institutional investors.

Snap News Roundup

Here are the key news stories impacting Snap this week:

• Positive Sentiment: Better-than-expected Q2 results support turnaround hopes. Snap reported adjusted EPS of $(0.10), ahead of the $(0.12) consensus estimate, while revenue of $1.60 billion exceeded forecasts and increased 18.9% year over year. The results have strengthened the case that advertising and user-growth improvements could support a recovery. Snap: Strong Q2 Earnings Bolster Hopes Of A Turnaround
• Positive Sentiment: Several analysts see upside. Cantor Fitzgerald issued a bullish forecast, Wells Fargo said the stock is expected to rise, and Citigroup raised its price target to $6.75. Heavy trading in Snap call options also indicates increased speculative interest following the earnings report. Cantor Fitzgerald Forecasts Strong Price Appreciation Wells Fargo Analyst Forecast Citigroup Raises Price Target
• Neutral Sentiment: Analyst views remain divided. Citizens JMP reiterated a Market Perform rating, suggesting the earnings improvement may already be reflected in the stock. A speculative article about a possible future acquisition of Snap offers no confirmed transaction or takeover discussions. Citizens JMP Reiterates Market Perform Who Might Buy Snap If Its Founders Ever Decide to Sell
• Negative Sentiment: Bearish ratings are limiting enthusiasm. Rosenblatt Securities issued a pessimistic forecast, while Zacks Research downgraded Snap to “Strong Sell.” Snap also remains unprofitable, with analysts expecting a loss for the full year, and its shares are near the 200-day moving average after retreating from the post-earnings surge. Rosenblatt Pessimistic Forecast Zacks Downgrade

Snap Company Profile

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.