Snap (NYSE:SNAP) Hits New 12-Month Low – Should You Sell?

Shares of Snap Inc. (NYSE:SNAP) hit a new 52-week low on Wednesday . The stock traded as low as $4.31 and last traded at $4.3650, with a volume of 35486124 shares traded. The stock had previously closed at $4.51.

Wall Street Analyst Weigh In

A number of equities research analysts have weighed in on the stock. Piper Sandler reiterated a “neutral” rating on shares of Snap in a research report on Thursday, February 5th. Susquehanna lowered their price objective on shares of Snap from $9.00 to $6.50 and set a “neutral” rating for the company in a research report on Thursday, February 5th. Morgan Stanley dropped their target price on shares of Snap from $9.50 to $6.50 and set an “equal weight” rating for the company in a report on Sunday, February 22nd. B. Riley Financial raised Snap from a “neutral” rating to a “buy” rating and set a $10.00 target price on the stock in a research report on Thursday, February 5th. Finally, Arete Research set a $7.30 price target on Snap and gave the stock a “buy” rating in a research note on Tuesday, February 10th. One investment analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating, twenty have issued a Hold rating and three have issued a Sell rating to the company’s stock. According to MarketBeat.com, the stock currently has a consensus rating of “Hold” and a consensus price target of $8.17.

Snap Trading Down 11.0%

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 firm has a market cap of $6.75 billion, a PE ratio of -14.80 and a beta of 0.83. The company’s 50 day moving average price is $5.54 and its 200 day moving average price is $7.10.

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 analysts’ expectations 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 period in the previous year, the company earned $0.01 earnings per share. As a group, analysts forecast that Snap Inc. will post -0.3 EPS for the current fiscal year.

Insider Buying and Selling at Snap

In related news, General Counsel Zachary M. Briers sold 68,620 shares of the business’s stock in a transaction on Wednesday, February 18th. The stock was sold at an average price of $4.73, for a total transaction of $324,572.60. Following the completion of the transaction, the general counsel directly owned 2,785,468 shares of the company’s stock, valued at $13,175,263.64. The trade was a 2.40% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, insider Ajit Mohan sold 27,743 shares of the company’s stock in a transaction dated Monday, March 16th. The stock was sold at an average price of $4.59, for a total value of $127,340.37. Following the sale, the insider owned 5,130,734 shares in the company, valued at approximately $23,550,069.06. This trade represents a 0.54% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last ninety days, insiders have sold 2,570,641 shares of company stock valued at $13,436,343. Insiders own 22.68% of the company’s stock.

Hedge Funds Weigh In On Snap

Institutional investors and hedge funds have recently made changes to their positions in the stock. Korea Investment CORP grew its holdings in Snap by 573.6% during the 3rd quarter. Korea Investment CORP now owns 967,544 shares of the company’s stock worth $7,460,000 after acquiring an additional 823,900 shares in the last quarter. Contrarius Group Holdings Ltd acquired a new stake in shares of Snap in the 3rd quarter valued at $10,256,000. DNB Asset Management AS raised its holdings in shares of Snap by 433.6% in the 3rd quarter. DNB Asset Management AS now owns 1,042,873 shares of the company’s stock valued at $8,041,000 after purchasing an additional 847,447 shares in the last quarter. Nikko Asset Management Americas Inc. lifted its position in shares of Snap by 94.1% during the 2nd quarter. Nikko Asset Management Americas Inc. now owns 2,107,288 shares of the company’s stock worth $18,312,000 after purchasing an additional 1,021,677 shares during the last quarter. Finally, Quantbot Technologies LP grew its stake in shares of Snap by 54.4% during the third quarter. Quantbot Technologies LP now owns 749,724 shares of the company’s stock worth $5,780,000 after purchasing an additional 264,156 shares in the last quarter. 47.52% of the stock is owned by institutional investors and hedge funds.

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.