Snap Inc. (NYSE:SNAP) experienced a significant revision in its stock price target, as TD Cowen announced a decrease from $9.00 to $8.00 in a research report released on Thursday. The firm has now assigned a hold rating to the stock, reflecting a cautious outlook amidst a mixed sentiment from various analysts.
Several other financial institutions have also adjusted their price targets for Snap. Notably, Cantor Fitzgerald lowered its price objective from $9.00 to $7.00 while maintaining a neutral rating. In a separate report, the Goldman Sachs Group cut its target from $9.50 to $8.50, also assigning a neutral rating. Meanwhile, B. Riley Financial has taken a more optimistic stance, upgrading Snap from neutral to buy with a target price of $10.00.
Additionally, BNP Paribas Exane began coverage of Snap with a “strong sell” rating, indicating significant caution regarding the company’s performance. On the other hand, BMO Capital Markets raised its target price from $12.00 to $13.00 while giving Snap an outperform rating.
Currently, Snap has received a mix of ratings: one analyst has assigned a strong buy, five have given a buy rating, twenty-three rated it as hold, and three analysts have issued a sell rating. Data from MarketBeat shows that the average consensus rating for Snap is “hold,” with a consensus price target of $8.66.
Stock Performance and Market Insights
On Thursday, Snap’s stock opened at $5.24. The company, which has a market capitalization of $9.01 billion, reported a P/E ratio of -19.41 and a beta of 0.83. Over the past year, Snap’s stock has fluctuated with a low of $5.10 and a high of $11.26. The stock’s current ratio stands at 3.67, with a quick ratio of 3.67 and a debt-to-equity ratio of 1.57.
Snap’s recent quarterly earnings report revealed an earnings per share (EPS) of $0.03, falling short of the analysts’ consensus estimate of $0.15 by $0.12. The company reported revenue of $1.72 billion, slightly exceeding the consensus estimate of $1.70 billion. Compared to the same quarter last year, Snap’s revenue increased by 10.2%, although it reported a negative return on equity of 20.91% and a negative net margin of 7.76%.
Recent Insider Activity and Institutional Changes
In related news, Snap’s Chief Accounting Officer, Rebecca Morrow, sold 12,699 shares of the company on November 17, at an average price of $8.34. This transaction amounted to a total of $105,909.66, reducing her ownership to 466,603 shares, valued at approximately $3.89 million. Similarly, Chief Financial Officer Derek Andersen sold 62,868 shares for about $524,319.12, bringing his total holdings to 3,030,301 shares.
Over the past three months, insiders have sold a total of 393,341 shares of Snap, valued at $3.17 million. Currently, insiders hold approximately 22.68% of the company’s stock.
Institutional investors have also been active in adjusting their stakes in Snap. Notably, Alyeska Investment Group L.P. acquired a new stake worth approximately $176.7 million during the third quarter. Other firms, such as Junto Capital Management LP and Voloridge Investment Management LLC, have also made significant acquisitions, with the latter increasing its stake by 53.3%.
As of now, institutional investors and hedge funds collectively own 47.52% of Snap’s shares, indicating a substantial level of institutional interest.
The latest news concerning Snap reflects a mix of cautious and optimistic sentiments among analysts and investors, with various price target adjustments highlighting the fluctuations in market confidence. As the company navigates through these changes, its performance in the upcoming quarters will be closely monitored by the investment community.
