Snap (NYSE:SNAP) Downgraded to “Strong Sell” Rating by Zacks Research

Zacks Research cut shares of Snap (NYSE:SNAP) from a hold rating to a strong sell rating in a report issued on Monday,Zacks.com reports.

SNAP has been the subject of a number of other research reports. Mizuho raised their target price on Snap from $5.00 to $6.00 and gave the company a “neutral” rating in a research note on Tuesday. KeyCorp raised Snap from a “sector weight” rating to an “overweight” rating in a research note on Monday, April 27th. Royal Bank Of Canada decreased their price objective on Snap from $10.00 to $8.00 and set a “sector perform” rating for the company in a report on Thursday, May 7th. Sanford C. Bernstein reissued a “market perform” rating and set a $5.00 price objective on shares of Snap in a research report on Tuesday, July 21st. Finally, Wall Street Zen cut shares of Snap from a “buy” rating to a “hold” rating in a report on Sunday, July 26th. One investment analyst has rated the stock with a Strong Buy rating, eight have issued a Buy rating, twenty-four have issued a Hold rating and three have assigned a Sell rating to the company. Based on data from MarketBeat.com, the company presently has a consensus rating of “Hold” and an average price target of $7.65.

Snap Stock Performance

Shares of SNAP opened at $5.76 on Monday. The company has a debt-to-equity ratio of 1.67, a current ratio of 3.53 and a quick ratio of 3.53. Snap has a one year low of $3.81 and a one year high of $9.55. The company has a 50-day simple moving average of $4.96 and a two-hundred day simple moving average of $5.33. The firm has a market capitalization of $9.73 billion, a PE ratio of -24.00 and a beta of 1.03.

Snap (NYSE:SNAP) last posted its quarterly earnings data on Monday, August 3rd. The company reported ($0.10) earnings per share for the quarter, beating the consensus estimate of ($0.12) by $0.02. Snap had a negative return on equity of 14.16% and a negative net margin of 4.90%.The business had revenue of $1.60 billion for the quarter, compared to analysts’ expectations of $1.54 billion. During the same period in the previous year, the firm posted ($0.16) EPS. The business’s revenue was up 18.9% on a year-over-year basis. On average, analysts anticipate that Snap will post -0.07 EPS for the current fiscal year.

Insider Transactions at Snap

In related news, CTO Robert C. Murphy sold 343,945 shares of the firm’s stock in a transaction that occurred on Friday, May 29th. The stock was sold at an average price of $5.88, for a total transaction of $2,022,396.60. Following the completion of the transaction, the chief technology officer owned 4,963,581 shares of the company’s stock, valued at $29,185,856.28. This trade represents a 6.48% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, General Counsel Zachary M. Briers sold 11,958 shares of Snap stock in a transaction on Thursday, June 4th. The shares were sold at an average price of $6.00, for a total value of $71,748.00. Following the transaction, the general counsel owned 2,560,835 shares of the company’s stock, valued at $15,365,010. The trade was a 0.46% decrease in their position. The SEC filing for this sale provides additional information. Over the last 90 days, insiders sold 2,868,059 shares of company stock worth $15,855,631.

Institutional Investors Weigh In On Snap

Institutional investors have recently modified their holdings of the stock. Vanguard Group Inc. boosted its stake in Snap by 0.6% in the 4th quarter. Vanguard Group Inc. now owns 101,251,557 shares of the company’s stock worth $817,100,000 after purchasing an additional 641,271 shares in the last quarter. Capital World Investors grew its position in Snap by 1.4% during the 4th quarter. Capital World Investors now owns 88,452,006 shares of the company’s stock valued at $713,808,000 after purchasing an additional 1,179,543 shares during the last quarter. Alyeska Investment Group L.P. bought a new stake in Snap during the 3rd quarter valued at about $176,697,000. Geode Capital Management LLC increased its stake in Snap by 3.6% during the 4th quarter. Geode Capital Management LLC now owns 13,525,119 shares of the company’s stock valued at $108,711,000 after purchasing an additional 469,795 shares in the last quarter. Finally, Voloridge Investment Management LLC raised its holdings in Snap by 53.3% in the third quarter. Voloridge Investment Management LLC now owns 10,300,911 shares of the company’s stock worth $79,420,000 after buying an additional 3,582,223 shares during the last quarter. 47.52% of the stock is owned by hedge funds and other institutional investors.

Key Headlines Impacting Snap

Here are the key news stories impacting Snap this week:

• Positive Sentiment: Q2 results exceeded expectations: Snap reported $1.60 billion in revenue, up 18.9% year over year and ahead of the $1.54 billion consensus estimate. Its $0.10-per-share loss was narrower than the expected $0.12 loss. Management also highlighted improving advertising trends, margin expansion, positive free cash flow and sharply higher adjusted EBITDA. Snap Inc. Announces Second Quarter 2026 Financial Results
• Positive Sentiment: Third-quarter outlook supported investor sentiment: Snap forecast revenue of approximately $1.7 billion, in line with consensus, with management citing stronger advertising demand, AI tools, subscription growth and spending tied to major events such as the FIFA World Cup. Shares rose sharply following the earnings release. Snap second quarter results lifted by improving advertising trends
• Positive Sentiment: Options activity indicates bullish positioning: Traders purchased an unusually large volume of Snap call options, suggesting increased speculative interest after the earnings rally. Stock Traders Buy High Volume of Snap Call Options
• Neutral Sentiment: Analyst views remain mixed: Wells Fargo and Cantor Fitzgerald raised their targets to $6, while Citigroup raised its target to $6.75. Truist cut its target to $7 from $8, and other firms retained neutral or market-perform ratings. The targets imply only modest upside from the current quotation.
• Neutral Sentiment: Technical traders are watching resistance: Snap has been approaching a potential resistance level after its earnings-driven move higher, which could lead to short-term volatility. Stock Of The Day: Is Snap Breaking Out?
• Negative Sentiment: Zacks downgraded Snap from “hold” to “strong sell,” adding fresh pressure after the post-earnings advance. Zacks.com
• Negative Sentiment: Specs demand remains uncertain: CEO Evan Spiegel avoided detailed comments on pre-orders for Snap’s smart glasses ahead of the planned September launch, leaving investors without clear evidence of consumer demand. Snap CEO sidesteps Specs pre-order questions

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.