Snap (SNAP) Shares Gap Up on Analyst Upgrade

Shares of Snap Inc (NYSE:SNAP) gapped up prior to trading on Friday after Royal Bank of Canada upgraded the stock from a sector perform rating to an outperform rating. The stock had previously closed at $10.92, but opened at $11.28. Snap shares last traded at $11.84, with a volume of 58400246 shares.

A number of other equities analysts have also recently commented on the stock. Zacks Investment Research raised shares of Snap from a “hold” rating to a “buy” rating and set a $10.00 price objective for the company in a research note on Monday, February 18th. Citigroup upgraded shares of Snap from a “sell” rating to a “neutral” rating and set a $7.00 target price on the stock in a research report on Monday, January 14th. Goldman Sachs Group downgraded shares of Snap from a “buy” rating to a “neutral” rating and lowered their price target for the company from $10.00 to $6.00 in a report on Friday, January 4th. BTIG Research upgraded Snap from a “sell” rating to a “neutral” rating in a research report on Thursday, December 20th. Finally, Cowen upgraded Snap from an “underperform” rating to a “market perform” rating and set a $6.00 price objective on the stock in a research report on Thursday, January 10th. Three investment analysts have rated the stock with a sell rating, twenty-four have issued a hold rating and seven have issued a buy rating to the company’s stock. The company has an average rating of “Hold” and an average price target of $8.99.

In other Snap news, CFO Timothy R. Stone sold 20,386 shares of the stock in a transaction on Wednesday, January 16th. The stock was sold at an average price of $5.77, for a total value of $117,627.22. Following the sale, the chief financial officer now owns 2,290,834 shares in the company, valued at $13,218,112.18. The transaction was disclosed in a legal filing with the SEC, which is accessible through the SEC website. Also, CEO Evan Spiegel sold 4,447,107 shares of the stock in a transaction on Tuesday, March 5th. The stock was sold at an average price of $9.98, for a total value of $44,382,127.86. Following the completion of the sale, the chief executive officer now owns 74,450,661 shares in the company, valued at approximately $743,017,596.78. The disclosure for this sale can be found here. Insiders have sold a total of 6,517,946 shares of company stock valued at $64,715,231 over the last three months.

Several institutional investors and hedge funds have recently modified their holdings of the company. Geode Capital Management LLC increased its stake in Snap by 4.5% in the 4th quarter. Geode Capital Management LLC now owns 4,810,361 shares of the company’s stock worth $26,505,000 after buying an additional 208,932 shares during the period. FMR LLC lifted its holdings in Snap by 2.8% during the 4th quarter. FMR LLC now owns 22,150,589 shares of the company’s stock valued at $122,050,000 after buying an additional 606,983 shares in the last quarter. HighPoint Advisor Group LLC purchased a new stake in Snap in the 4th quarter valued at about $117,000. B. Riley Wealth Management Inc. purchased a new stake in Snap in the 4th quarter valued at about $163,000. Finally, HRT Financial LLC grew its stake in Snap by 212.9% in the 4th quarter. HRT Financial LLC now owns 108,307 shares of the company’s stock worth $596,000 after acquiring an additional 73,697 shares in the last quarter. 23.31% of the stock is owned by hedge funds and other institutional investors.

The stock has a market capitalization of $14.90 billion, a P/E ratio of -12.21 and a beta of 1.18.

Snap (NYSE:SNAP) last announced its quarterly earnings results on Tuesday, February 5th. The company reported ($0.04) earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of ($0.19) by $0.15. Snap had a negative return on equity of 46.90% and a negative net margin of 106.39%. The firm had revenue of $389.82 million during the quarter, compared to analyst estimates of $378.90 million. During the same quarter in the previous year, the business earned ($0.13) earnings per share. Snap’s quarterly revenue was up 36.4% on a year-over-year basis. On average, analysts forecast that Snap Inc will post -0.69 EPS for the current fiscal year.

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Snap Company Profile (NYSE:SNAP)

Snap Inc operates as a camera company in the United States and internationally. The company offers Snapchat, a camera application that helps people to communicate through short videos and images. It also provides Camera, a tool to personalize and add context to Snaps; Friends Page that allows creating and watching stories, chatting with groups, making voice and video calls, and communicating through a range of contextual stickers and Bitmojis; and Discover that helps surfacing the stories and shows from publishers, creators, and the community, based on a user's subscriptions and interests.

Further Reading: Return On Assets

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