Contour Asset Management LLC Trims Stake in Snap Inc. $SNAP

Contour Asset Management LLC lessened its holdings in shares of Snap Inc. (NYSE:SNAP) by 65.9% in the 4th quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm owned 3,355,000 shares of the company’s stock after selling 6,498,000 shares during the period. Contour Asset Management LLC owned about 0.20% of Snap worth $27,075,000 at the end of the most recent reporting period.

A number of other hedge funds have also recently modified their holdings of the business. Empowered Funds LLC boosted its holdings in Snap by 13.3% during the 1st quarter. Empowered Funds LLC now owns 40,393 shares of the company’s stock valued at $352,000 after acquiring an additional 4,754 shares during the period. Prudential Financial Inc. purchased a new stake in Snap in the second quarter worth $136,000. Investment Management Corp of Ontario lifted its position in shares of Snap by 104.0% during the second quarter. Investment Management Corp of Ontario now owns 61,513 shares of the company’s stock worth $535,000 after purchasing an additional 31,357 shares during the last quarter. Nebula Research & Development LLC bought a new stake in shares of Snap during the second quarter worth $1,675,000. Finally, The Manufacturers Life Insurance Company boosted its stake in shares of Snap by 52.0% during the second quarter. The Manufacturers Life Insurance Company now owns 89,337 shares of the company’s stock valued at $776,000 after purchasing an additional 30,561 shares during the period. Institutional investors own 47.52% of the company’s stock.

Analysts Set New Price Targets

A number of research analysts have recently commented on the stock. Wells Fargo & Company upped their price target on shares of Snap from $6.00 to $7.00 and gave the stock an “equal weight” rating in a report on Thursday, May 7th. Royal Bank Of Canada decreased their price objective on shares of Snap from $10.00 to $8.00 and set a “sector perform” rating for the company in a report on Thursday, May 7th. JPMorgan Chase & Co. dropped their target price on shares of Snap from $7.00 to $6.00 and set an “underweight” rating on the stock in a research note on Thursday, May 7th. The Goldman Sachs Group reduced their target price on shares of Snap from $8.00 to $7.00 and set a “neutral” rating on the stock in a research report on Thursday, May 7th. Finally, Piper Sandler reaffirmed a “neutral” rating on shares of Snap in a research note on Wednesday. One equities research analyst has rated the stock with a Strong Buy rating, nine have issued a Buy rating, twenty-three have issued a Hold rating and two have issued a Sell rating to the stock. According to data from MarketBeat.com, the company presently has an average rating of “Hold” and a consensus price target of $7.79.

Snap News Summary

Here are the key news stories impacting Snap this week:

• Negative Sentiment: Snap’s debut of Specs sparked selling as investors balked at the $2,195 price and questioned whether consumers will pay up for the company’s first standalone AR glasses. After unveiling ridiculously expensive AR glasses, Snap’s stock takes a dive
• Neutral Sentiment: Management is framing Specs as a long-term bet on life beyond smartphones, which could support the stock over time if the product gains traction, but near-term investor reaction has been cautious. Snap CEO Spiegel defends Specs as long-term bet, pushes back against activist pressure
• Positive Sentiment: Snap has been making other strategic moves in AR and finance, including an Illumix acquisition and a debt upgrade, which may improve the company’s longer-term risk profile. Snap’s AR Push And Debt Upgrade Reframe Valuation And Risk Profile
• Neutral Sentiment: Separately, Snap has introduced new safeguards for younger users, a policy update that may help with platform trust but is unlikely to be a major immediate stock catalyst. SNAP Introduces New Safeguards for Younger Users

Insider Activity at Snap

In related news, insider Ajit Mohan sold 44,785 shares of the company’s stock in a transaction on Monday, May 18th. The stock was sold at an average price of $5.60, for a total transaction of $250,796.00. Following the completion of the sale, the insider directly owned 5,057,891 shares in the company, valued at $28,324,189.60. This represents a 0.88% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CFO Douglas Hott sold 114,702 shares of the firm’s 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 sale, the chief financial officer directly owned 2,456,447 shares in the company, valued at approximately $13,928,054.49. The trade was a 4.46% 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. Insiders have sold 2,900,631 shares of company stock valued at $16,054,989 over the last 90 days. Insiders own 22.68% of the company’s stock.

Snap Trading Down 8.7%

NYSE SNAP opened at $4.71 on Thursday. Snap Inc. has a one year low of $3.81 and a one year high of $10.41. The company has a debt-to-equity ratio of 1.67, a quick ratio of 3.53 and a current ratio of 3.53. The company has a market capitalization of $7.96 billion, a price-to-earnings ratio of -19.63 and a beta of 1.03. The company’s 50-day simple moving average is $5.64 and its two-hundred day simple moving average is $6.10.

Snap (NYSE:SNAP) last announced its quarterly earnings results on Wednesday, May 6th. The company reported ($0.05) earnings per share for the quarter, missing the consensus estimate 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 period in the previous year, the company posted ($0.08) EPS. Snap’s revenue for the quarter was up 12.2% on a year-over-year basis. Equities analysts forecast that Snap Inc. will post -0.06 EPS for the current fiscal year.

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.