Dimensional Fund Advisors LP Lowers Stake in Snap Inc. $SNAP

Dimensional Fund Advisors LP reduced its stake in shares of Snap Inc. (NYSE:SNAP) by 23.7% in the first quarter, according to its most recent filing with the SEC. The fund owned 4,543,989 shares of the company’s stock after selling 1,410,716 shares during the period. Dimensional Fund Advisors LP’s holdings in Snap were worth $20,867,000 as of its most recent SEC filing.

Other hedge funds and other institutional investors also recently added to or reduced their stakes in the company. Allworth Financial LP raised its position in Snap by 92.3% during the third quarter. Allworth Financial LP now owns 3,293 shares of the company’s stock valued at $25,000 after purchasing an additional 1,581 shares in the last quarter. Arax Advisory Partners boosted its holdings in shares of Snap by 220.0% in the 4th quarter. Arax Advisory Partners now owns 3,309 shares of the company’s stock worth $27,000 after purchasing an additional 2,275 shares in the last quarter. V Square Quantitative Management LLC purchased a new position in shares of Snap in the 4th quarter worth about $29,000. EverSource Wealth Advisors LLC boosted its holdings in shares of Snap by 561.4% in the 4th quarter. EverSource Wealth Advisors LLC now owns 3,618 shares of the company’s stock worth $29,000 after purchasing an additional 3,071 shares in the last quarter. Finally, Banque Cantonale Vaudoise bought a new position in shares of Snap during the 3rd quarter valued at about $39,000. 47.52% of the stock is currently owned by hedge funds and other institutional investors.

Analyst Upgrades and Downgrades

SNAP has been the topic of a number of research reports. Freedom Capital cut Snap from a “strong-buy” rating to a “hold” rating in a report on Tuesday, May 12th. Citigroup increased their price target on shares of Snap from $6.50 to $6.75 and gave the company a “neutral” rating in a research report on Tuesday. Benchmark reissued a “hold” rating on shares of Snap in a research note on Tuesday. Evercore set a $8.00 price objective on shares of Snap in a report on Tuesday. Finally, Weiss Ratings reaffirmed a “sell (e+)” rating on shares of Snap in a research note on Friday, July 17th. One research analyst has rated the stock with a Strong Buy rating, eight have assigned a Buy rating, twenty-four have assigned a Hold rating and three have assigned a Sell rating to the company’s stock. According to MarketBeat.com, the company presently has an average rating of “Hold” and an average target price of $7.65.

Snap Price Performance

Shares of Snap stock opened at $5.21 on Friday. The business has a 50 day moving average of $4.93 and a 200 day moving average of $5.29. Snap Inc. has a 52 week low of $3.81 and a 52 week high of $9.28. The company has a market cap of $8.81 billion, a PE ratio of -28.97 and a beta of 1.03. 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 quarterly earnings data on Monday, August 3rd. The company reported ($0.10) earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of ($0.12) by $0.02. The business had revenue of $1.60 billion for the quarter, compared to the consensus estimate of $1.54 billion. Snap had a negative net margin of 4.90% and a negative return on equity of 14.61%. The company’s quarterly revenue was up 18.9% compared to the same quarter last year. During the same period in the previous year, the firm earned ($0.16) EPS. As a group, equities research analysts forecast that Snap Inc. will post -0.07 earnings per share for the current year.

Key Snap News

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

Insider Transactions at Snap

In related news, CFO Douglas Hott sold 114,702 shares of the stock in a transaction dated Tuesday, May 19th. The shares were sold at an average price of $5.67, for a total value of $650,360.34. Following the completion of the transaction, the chief financial officer directly owned 2,456,447 shares of the company’s stock, valued at $13,928,054.49. This represents a 4.46% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CTO Robert C. Murphy sold 343,945 shares of the firm’s stock in a transaction dated Friday, May 29th. The stock was sold at an average price of $5.88, for a total transaction 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 trade represents a 6.48% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last 90 days, insiders sold 2,868,059 shares of company stock worth $15,855,631. 22.68% of the stock is owned by corporate insiders.

Snap 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.