Snap (NYSE:SNAP) Trading Down 4.3% – Time to Sell?

Snap Inc. (NYSE:SNAP) was down 4.3% on Thursday . The stock traded as low as $5.13 and last traded at $5.1510. Approximately 4,393,104 shares were traded during trading, a decline of 91% from the average daily volume of 50,457,625 shares. The stock had previously closed at $5.38.

Analyst Ratings Changes

SNAP has been the subject of several analyst reports. Barclays raised Snap from an “overweight” rating to an “overweight” rating in a research report on Monday, April 27th. TD Cowen initiated coverage on Snap in a research note on Monday, April 27th. They issued a “buy” rating on the stock. Sanford C. Bernstein cut shares of Snap from a “market perform” rating to a “market perform” rating in a report on Monday, April 27th. Stifel Nicolaus boosted their target price on Snap from $4.50 to $5.25 and gave the company a “hold” rating in a research report on Tuesday, April 21st. Finally, UBS Group set a $8.00 target price on Snap in a research report on Thursday, May 7th. One investment analyst has rated the stock with a Strong Buy rating, ten have issued a Buy rating, twenty-two have assigned a Hold rating and two have given a Sell rating to the stock. According to data from MarketBeat.com, the stock currently has a consensus rating of “Hold” and an average price target of $7.91.

Snap Price Performance

The business has a 50 day moving average price of $5.61 and a two-hundred day moving average price of $6.16. The stock has a market cap of $8.87 billion, a PE ratio of -21.88 and a beta of 1.03. The company has a debt-to-equity ratio of 1.67, a quick ratio of 3.53 and a current ratio of 3.53.

Snap (NYSE:SNAP) last announced its earnings results on Wednesday, May 6th. The company reported ($0.05) earnings per share for the quarter, missing analysts’ consensus estimates of $0.09 by ($0.14). Snap had a negative return on equity of 18.92% and a negative net margin of 6.72%.The business had revenue of $1.53 billion during the quarter, compared to analysts’ expectations of $1.53 billion. During the same quarter in the previous year, the firm earned ($0.08) EPS. Snap’s quarterly revenue was up 12.2% on a year-over-year basis. Research analysts expect that Snap Inc. will post -0.06 earnings per share for the current fiscal year.

Insider Transactions at Snap

In other news, CTO Robert C. Murphy sold 2,000,000 shares of the business’s stock in a transaction that occurred on Wednesday, May 13th. The stock was sold at an average price of $5.44, for a total value of $10,880,000.00. Following the transaction, the chief technology officer owned 47,012,324 shares in the company, valued at $255,747,042.56. The trade was a 4.08% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CFO Douglas Hott sold 124,209 shares of the business’s stock in a transaction that occurred on Monday, May 18th. The stock was sold at an average price of $5.60, for a total value of $695,570.40. Following the completion of the transaction, the chief financial officer owned 2,571,149 shares in the company, valued at $14,398,434.40. The trade was a 4.61% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last three months, insiders have sold 3,021,330 shares of company stock worth $16,608,998. 22.68% of the stock is owned by insiders.

Hedge Funds Weigh In On Snap

Institutional investors and hedge funds have recently bought and sold shares of the company. Allworth Financial LP grew its holdings 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 during the period. Oak Harvest Investment Services bought a new position in Snap during the fourth quarter valued at $26,000. Arax Advisory Partners grew its holdings in Snap by 220.0% during the fourth quarter. Arax Advisory Partners now owns 3,309 shares of the company’s stock valued at $27,000 after purchasing an additional 2,275 shares during the period. V Square Quantitative Management LLC bought a new position in Snap during the fourth quarter valued at $29,000. Finally, EverSource Wealth Advisors LLC grew its holdings in Snap by 561.4% during the fourth quarter. EverSource Wealth Advisors LLC now owns 3,618 shares of the company’s stock valued at $29,000 after purchasing an additional 3,071 shares during the period. 47.52% of the stock is owned by institutional investors.

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.