Snap (NYSE:SNAP) Hits New 1-Year Low – Here’s Why

Snap Inc. (NYSE:SNAP)’s share price reached a new 52-week low on Wednesday . The company 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.

Analyst Ratings Changes

Several research firms recently commented on SNAP. Evercore reissued a “mixed” rating on shares of Snap in a research note on Thursday, February 5th. Citigroup decreased their price objective on Snap from $10.00 to $6.00 and set a “neutral” rating for the company in a research note on Thursday, February 12th. Susquehanna lowered their price objective on Snap from $9.00 to $6.50 and set a “neutral” rating for the company in a research report on Thursday, February 5th. B. Riley Financial upgraded shares of Snap from a “neutral” rating to a “buy” rating and set a $10.00 target price on the stock in a research note on Thursday, February 5th. Finally, Arete Research set a $7.30 target price on shares of Snap and gave the company a “buy” rating in a report on Tuesday, February 10th. One investment analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating, twenty have assigned a Hold rating and three have issued a Sell rating to the stock. According to data from MarketBeat, the company has an average rating of “Hold” and an average target price of $8.17.

Snap Price Performance

The company has a market capitalization of $7.37 billion, a PE ratio of -16.17 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 has a fifty day simple moving average of $5.68 and a 200-day simple moving average of $7.14.

Snap (NYSE:SNAP) last released its quarterly earnings data on Wednesday, February 4th. The company reported $0.03 EPS for the quarter, missing analysts’ consensus estimates of $0.15 by ($0.12). Snap had a negative net margin of 7.76% and a negative return on equity of 20.72%. The business had revenue of $1.72 billion during the quarter, compared to analysts’ expectations of $1.70 billion. During the same quarter in the previous year, the company posted $0.01 EPS. The company’s revenue was up 10.2% compared to the same quarter last year. Equities analysts anticipate that Snap Inc. will post -0.3 earnings per share for the current year.

Insiders Place Their Bets

In other Snap news, insider Ajit Mohan sold 119,339 shares of the stock in a transaction that occurred on Tuesday, February 17th. The shares were sold at an average price of $4.70, for a total value of $560,893.30. Following the transaction, the insider directly owned 5,158,477 shares in the company, valued at $24,244,841.90. This represents a 2.26% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, General Counsel Zachary M. Briers sold 134,705 shares of the firm’s stock in a transaction that occurred on Tuesday, February 17th. The stock was sold at an average price of $4.70, for a total transaction of $633,113.50. Following the sale, the general counsel directly owned 2,854,088 shares in the company, valued at approximately $13,414,213.60. The trade was a 4.51% decrease in their position. The SEC filing for this sale provides additional information. Over the last ninety days, insiders sold 2,570,641 shares of company stock valued at $13,436,343.

Institutional Investors Weigh In On Snap

Hedge funds and other institutional investors have recently bought and sold shares of the stock. Allworth Financial LP boosted its stake in Snap by 92.3% in the third quarter. Allworth Financial LP now owns 3,293 shares of the company’s stock valued at $25,000 after acquiring an additional 1,581 shares in the last quarter. Oak Harvest Investment Services purchased a new stake in shares of Snap in the 4th quarter valued at about $26,000. Arax Advisory Partners lifted its holdings in shares of Snap by 220.0% in the 4th 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 last quarter. V Square Quantitative Management LLC acquired a new stake in shares of Snap in the 4th quarter valued at about $29,000. Finally, EverSource Wealth Advisors LLC grew its stake in Snap by 561.4% during the 4th quarter. EverSource Wealth Advisors LLC now owns 3,618 shares of the company’s stock worth $29,000 after buying an additional 3,071 shares during the last quarter. 47.52% of the stock is currently owned by institutional investors and hedge funds.

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.