Snap (NYSE:SNAP) Shares Gap Up – Should You Buy?

Snap Inc. (NYSE:SNAP)’s share price gapped up before the market opened on Thursday . The stock had previously closed at $7.37, but opened at $7.73. Snap shares last traded at $7.7350, with a volume of 11,433,508 shares changing hands.

Analyst Ratings Changes

A number of research analysts recently commented on the company. The Goldman Sachs Group reduced their target price on Snap from $9.50 to $8.50 and set a “neutral” rating on the stock in a research note on Tuesday, January 13th. Exane BNP Paribas upgraded Snap to a “strong sell” rating in a report on Wednesday, January 14th. Citigroup increased their price objective on Snap from $8.50 to $10.00 and gave the company a “neutral” rating in a research report on Wednesday, November 12th. BNP Paribas Exane began coverage on Snap in a report on Wednesday, January 14th. They set a “strong sell” rating on the stock. Finally, Truist Financial upped their target price on Snap from $10.00 to $11.00 and gave the stock a “hold” rating in a research note on Friday, November 7th. Three research analysts have rated the stock with a Buy rating, twenty-four have issued a Hold rating and five have assigned a Sell rating to the stock. According to data from MarketBeat.com, the company has a consensus rating of “Reduce” and a consensus target price of $9.82.

Snap Price Performance

The firm has a fifty day moving average of $7.83 and a two-hundred day moving average of $8.04. The company has a current ratio of 3.67, a quick ratio of 3.67 and a debt-to-equity ratio of 1.57. The company has a market capitalization of $13.11 billion, a PE ratio of -26.29 and a beta of 0.81.

Snap (NYSE:SNAP) last announced its quarterly earnings results on Thursday, November 6th. The company reported ($0.06) EPS for the quarter, missing analysts’ consensus estimates of $0.06 by ($0.12). The company had revenue of $1.51 billion during the quarter, compared to analysts’ expectations of $1.49 billion. Snap had a negative return on equity of 21.61% and a negative net margin of 8.60%.Snap’s revenue for the quarter was up 9.8% on a year-over-year basis. During the same period last year, the firm earned ($0.09) earnings per share. Research analysts anticipate that Snap Inc. will post -0.3 EPS for the current fiscal year.

Insider Activity

In other Snap news, CAO Rebecca Morrow sold 3,783 shares of the stock in a transaction on Wednesday, December 17th. The shares were sold at an average price of $7.34, for a total transaction of $27,767.22. Following the completion of the sale, the chief accounting officer owned 483,181 shares of the company’s stock, valued at $3,546,548.54. This represents a 0.78% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at the SEC website. Also, insider Ajit Mohan sold 20,848 shares of the firm’s stock in a transaction on Friday, January 16th. The stock was sold at an average price of $7.62, for a total transaction of $158,861.76. Following the completion of the sale, the insider directly owned 5,277,816 shares in the company, valued at approximately $40,216,957.92. This trade represents a 0.39% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last quarter, insiders have sold 1,417,341 shares of company stock valued at $11,354,730. 22.68% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Institutional investors have recently added to or reduced their stakes in the stock. Signaturefd LLC increased its position in shares of Snap by 169.9% during the second quarter. Signaturefd LLC now owns 2,942 shares of the company’s stock valued at $26,000 after buying an additional 1,852 shares during the period. Allworth Financial LP lifted its holdings in 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 period. V Square Quantitative Management LLC bought a new stake in Snap during the 4th quarter valued at approximately $29,000. Mirae Asset Global Investments Co. Ltd. purchased a new position in shares of Snap during the 3rd quarter worth approximately $33,000. Finally, Banque Cantonale Vaudoise purchased a new position in shares of Snap during the 3rd quarter worth approximately $39,000. 47.52% of the stock is currently owned by institutional investors.

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.