Citigroup Issues Pessimistic Forecast for Snap (NYSE:SNAP) Stock Price

Snap (NYSE:SNAP) had its target price decreased by equities researchers at Citigroup from $10.00 to $6.00 in a note issued to investors on Thursday,Benzinga reports. The brokerage presently has a “neutral” rating on the stock. Citigroup’s target price suggests a potential upside of 24.87% from the company’s previous close.

SNAP has been the subject of several other research reports. Rosenblatt Securities decreased their price objective on shares of Snap from $9.50 to $6.40 and set a “neutral” rating for the company in a research note on Thursday, February 5th. Stifel Nicolaus set a $5.50 price target on Snap and gave the stock a “hold” rating in a report on Thursday, February 5th. The Goldman Sachs Group dropped their price objective on Snap from $9.50 to $8.50 and set a “neutral” rating for the company in a report on Tuesday, January 13th. Weiss Ratings reiterated a “sell (e+)” rating on shares of Snap in a research note on Wednesday, January 21st. Finally, Piper Sandler reaffirmed a “neutral” rating on shares of Snap in a research note on Thursday, February 5th. One investment analyst has rated the stock with a Strong Buy rating, six have issued a Buy rating, twenty-two have given a Hold rating and three have given a Sell rating to the company’s stock. According to MarketBeat.com, the company has a consensus rating of “Hold” and a consensus price target of $8.48.

Snap Trading Down 3.7%

NYSE SNAP traded down $0.19 during trading hours on Thursday, hitting $4.81. 51,453,695 shares of the company were exchanged, compared to its average volume of 58,762,773. Snap has a 52 week low of $4.72 and a 52 week high of $11.26. The company has a quick ratio of 3.56, a current ratio of 3.56 and a debt-to-equity ratio of 1.53. The stock has a 50-day moving average price of $7.43 and a 200 day moving average price of $7.72. The stock has a market cap of $8.26 billion, a PE ratio of -17.87 and a beta of 0.83.

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

Insiders Place Their Bets

In other news, CTO Robert C. Murphy sold 1,000,000 shares of the firm’s stock in a transaction on Tuesday, February 10th. The stock was sold at an average price of $5.36, for a total value of $5,360,000.00. Following the completion of the sale, the chief technology officer owned 49,313,775 shares of the company’s stock, valued at $264,321,834. This trade represents a 1.99% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Also, CFO Derek Andersen sold 23,715 shares of the company’s stock in a transaction dated Wednesday, January 14th. The shares were sold at an average price of $7.83, for a total value of $185,688.45. Following the transaction, the chief financial officer directly owned 2,972,051 shares in the company, valued at $23,271,159.33. This represents a 0.79% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last 90 days, insiders have sold 2,393,341 shares of company stock worth $13,799,210. 22.68% of the stock is currently owned by company insiders.

Institutional Trading of Snap

A number of institutional investors have recently bought and sold shares of the stock. Allworth Financial LP raised its holdings in shares of Snap by 92.3% in the third quarter. Allworth Financial LP now owns 3,293 shares of the company’s stock worth $25,000 after buying an additional 1,581 shares during the last quarter. Oak Harvest Investment Services acquired a new stake in Snap during the 4th quarter worth about $26,000. V Square Quantitative Management LLC purchased a new stake in Snap during the 4th quarter valued at about $29,000. EverSource Wealth Advisors LLC increased its holdings in shares of Snap by 561.4% in 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. Finally, Mirae Asset Global Investments Co. Ltd. purchased a new position in shares of Snap in the third quarter worth about $33,000. 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.