Snap (NYSE:SNAP) Raised to Buy at Wall Street Zen

Snap (NYSE:SNAP) was upgraded by Wall Street Zen from a “hold” rating to a “buy” rating in a research report issued to clients and investors on Saturday.

A number of other equities research analysts have also commented on the stock. KeyCorp upgraded shares of Snap from a “sector weight” rating to an “overweight” rating in a report on Monday, April 27th. BNP Paribas Exane lowered shares of Snap to a “neutral” rating in a report on Monday, April 27th. Cantor Fitzgerald boosted their price objective on shares of Snap from $5.00 to $6.00 and gave the company a “neutral” rating in a research report on Tuesday, August 4th. BMO Capital Markets reaffirmed an “outperform” rating on shares of Snap in a research note on Tuesday, August 4th. Finally, TD Cowen started coverage on shares of Snap in a report on Monday, April 27th. They set a “buy” rating for the company. Two research analysts have rated the stock with a Strong Buy rating, eight have assigned a Buy rating, twenty-three have assigned a Hold rating and three have assigned a Sell rating to the stock. According to MarketBeat, Snap presently has an average rating of “Hold” and a consensus price target of $7.65.

Snap Stock Down 0.1%

Shares of NYSE:SNAP opened at $5.33 on Friday. The stock has a market capitalization of $8.99 billion, a P/E ratio of -29.58 and a beta of 1.03. The stock’s 50-day moving average price is $4.92 and its 200-day moving average price is $5.28. The company has a current ratio of 2.94, a quick ratio of 2.94 and a debt-to-equity ratio of 1.75. Snap has a 12-month low of $3.81 and a 12-month high of $9.28.

Snap (NYSE:SNAP) last posted its quarterly earnings results on Monday, August 3rd. The company reported ($0.10) earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.12) by $0.02. The business had revenue of $1.60 billion for the quarter, compared to analyst estimates of $1.54 billion. Snap had a negative return on equity of 14.61% and a negative net margin of 4.90%.Snap’s revenue for the quarter was up 18.9% compared to the same quarter last year. During the same period last year, the company earned ($0.16) EPS. On average, equities analysts anticipate that Snap will post -0.05 earnings per share for the current year.

Insider Buying and Selling at Snap

In other news, CTO Robert C. Murphy sold 2,000,000 shares of Snap stock in a transaction that occurred on Wednesday, August 5th. The shares were sold at an average price of $5.55, for a total transaction of $11,100,000.00. Following the completion of the transaction, the chief technology officer directly owned 41,809,791 shares in the company, valued at approximately $232,044,340.05. This trade represents a 4.57% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CFO Douglas Hott sold 124,209 shares of the company’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 sale, 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. In the last ninety days, insiders have sold 4,868,059 shares of company stock valued at $26,955,631.

Institutional Trading of Snap

Institutional investors and hedge funds have recently bought and sold shares of the company. Saba Capital Management L.P. grew its stake in Snap by 232.5% during the 1st quarter. Saba Capital Management L.P. now owns 4,727,808 shares of the company’s stock worth $21,748,000 after buying an additional 3,306,024 shares during the last quarter. Empyrean Capital Partners LP purchased a new stake in Snap in the first quarter valued at approximately $25,300,000. Leonteq Securities AG purchased a new stake in Snap in the fourth quarter valued at approximately $1,620,000. Eurizon Capital SGR S.p.A. acquired a new stake in shares of Snap in the fourth quarter valued at approximately $1,629,000. Finally, Marsico Capital Management LLC purchased a new position in shares of Snap during the fourth quarter worth approximately $5,620,000. 47.52% of the stock is currently owned by institutional investors.

Key Stories Impacting Snap

Here are the key news stories impacting Snap this week:

• Positive Sentiment: Freedom Capital upgraded Snap from “hold” to “strong-buy,” adding a bullish endorsement following the company’s recent earnings performance. Zacks.com
• Positive Sentiment: Snap’s second-quarter results strengthened hopes for a turnaround. Revenue reached $1.60 billion, ahead of expectations, while the adjusted loss per share was narrower than analysts anticipated; revenue also increased 18.9% year over year. Snap: Strong Q2 Earnings Bolster Hopes Of A Turnaround
• Positive Sentiment: Coverage from Cantor Fitzgerald and Wells Fargo projected meaningful upside for Snap, reinforcing investor optimism that improving operating trends could support further appreciation. Cantor Fitzgerald Forecast Wells Fargo Forecast
• Positive Sentiment: Citigroup raised its price target to $6.75, signaling valuation upside from recent trading levels. Citigroup Price Target
• Neutral Sentiment: Citizens JMP reiterated a “market perform” rating, suggesting the firm sees balanced risk and reward rather than a decisive near-term catalyst. Citizens JMP Rating
• Negative Sentiment: An analyst downgrade led to an 8.1% decline in Snap shares, highlighting continued sensitivity to cautious Wall Street views despite the strong quarter. Snap Trading Down on Analyst Downgrade
• Negative Sentiment: Rosenblatt Securities issued a pessimistic forecast, adding to concerns that Snap’s earnings improvement may not yet represent a durable recovery. Rosenblatt Securities Forecast

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.