Snap (NYSE:SNAP) Reaches New 52-Week Low – Here’s Why

Snap Inc. (NYSE:SNAP)’s share price hit a new 52-week low during trading on Monday . The stock traded as low as $5.09 and last traded at $5.1750, with a volume of 3480460 shares changing hands. The stock had previously closed at $5.22.

Analysts Set New Price Targets

SNAP has been the subject of a number of recent research reports. Stifel Nicolaus set a $5.50 target price on Snap and gave the stock a “hold” rating in a research report on Thursday, February 5th. Bank of America upgraded shares of Snap from a “neutral” rating to a “buy” rating and set a $10.00 price objective for the company in a report on Thursday, February 5th. Citizens Jmp reaffirmed a “market perform” rating on shares of Snap in a report on Thursday, February 5th. Evercore ISI reissued a “mixed” rating on shares of Snap in a research note on Thursday, February 5th. Finally, TD Cowen cut their price target on shares of Snap from $9.00 to $8.00 and set a “hold” rating for the company in a research report on Thursday, February 5th. One investment analyst has rated the stock with a Strong Buy rating, six have assigned a Buy rating, twenty-two have issued a Hold rating and three have issued a Sell rating to the company’s stock. Based on data from MarketBeat, the stock currently has a consensus rating of “Hold” and an average price target of $8.63.

Snap Stock Up 1.0%

The company has a market capitalization of $9.01 billion, a P/E ratio of -19.41 and a beta of 0.83. The company has a current ratio of 3.56, a quick ratio of 3.56 and a debt-to-equity ratio of 1.53. The stock’s fifty day moving average is $7.49 and its 200 day moving average is $7.74.

Snap (NYSE:SNAP) last announced its quarterly 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 firm had revenue of $1.72 billion during the quarter, compared to the consensus estimate of $1.70 billion. Snap had a negative return on equity of 20.72% and a negative net margin of 7.76%.Snap’s revenue was up 10.2% on a year-over-year basis. During the same period last year, the business earned $0.01 EPS. Research analysts predict that Snap Inc. will post -0.3 EPS for the current fiscal year.

Insiders Place Their Bets

In other news, insider Ajit Mohan sold 109,372 shares of the business’s stock in a transaction that occurred on Monday, November 17th. The stock was sold at an average price of $8.34, for a total transaction of $912,162.48. Following the transaction, the insider directly owned 5,326,801 shares of the company’s stock, valued at approximately $44,425,520.34. The trade was a 2.01% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CTO Robert C. Murphy sold 1,000,000 shares of the company’s stock in a transaction that occurred on Friday, February 6th. The shares were sold at an average price of $5.27, for a total value of $5,270,000.00. Following the transaction, the chief technology officer owned 50,613,777 shares of the company’s stock, valued at approximately $266,734,604.79. This represents a 1.94% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold 2,393,341 shares of company stock worth $13,799,210 in the last quarter.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently made changes to their positions in the company. Vanguard Group Inc. grew its stake in Snap by 0.6% in 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 during the period. Capital World Investors boosted its holdings in shares of Snap by 1.5% during the 3rd quarter. Capital World Investors now owns 87,272,463 shares of the company’s stock valued at $672,896,000 after buying an additional 1,316,448 shares in the last quarter. Capital International Investors grew its position in shares of Snap by 0.3% in 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 during the period. Alyeska Investment Group L.P. bought a new position in shares of Snap in the 3rd quarter worth about $176,697,000. Finally, Geode Capital Management LLC increased its stake in shares of Snap by 3.6% in the 4th quarter. Geode Capital Management LLC now owns 13,525,119 shares of the company’s stock worth $108,711,000 after acquiring 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.