Snap Inc. (NYSE:SNAP) has faced a reduction in its price target, with TD Cowen lowering its projection from $9.00 to $8.00. This adjustment was outlined in a research report distributed to investors on Thursday morning. The firm has maintained a “hold” rating on the stock, reflecting a cautious stance amid fluctuating market sentiments.
Other analysts have also revised their assessments of Snap’s stock. Cantor Fitzgerald recently decreased its price target from $9.00 to $7.00, also assigning a “neutral” rating. Meanwhile, Goldman Sachs adjusted its target from $9.50 to $8.50, maintaining a similar neutral stance. In contrast, B. Riley Financial upgraded Snap from a “neutral” rating to “buy,” setting a price objective of $10.00. Additionally, BNP Paribas Exane initiated coverage with a “strong sell” rating, while BMO Capital Markets increased its target from $12.00 to $13.00 and gave an “outperform” rating.
Currently, one analyst rates the stock as a “strong buy,” five analysts have issued a “buy” rating, twenty-three analysts recommend a “hold,” and three suggest a “sell.” Data from MarketBeat shows that Snap holds an average rating of “hold” with a consensus price target of $8.66.
Market Performance and Earnings Update
On Thursday, Snap shares opened at $5.24. The company has a market capitalization of $9.01 billion and a negative price-to-earnings ratio of -19.41. Over the past year, Snap’s stock has experienced a low of $5.10 and a high of $11.26. The company reported a current ratio of 3.67, a quick ratio of 3.67, and a debt-to-equity ratio of 1.57.
Snap recently announced its quarterly earnings on February 4, 2024, revealing earnings per share (EPS) of $0.03, which fell short of analysts’ consensus estimate of $0.15 by $0.12. The company generated revenue of $1.72 billion, surpassing the expected $1.70 billion. Despite the revenue increase of 10.2% compared to the previous year, Snap recorded a negative return on equity of -20.91% and a net margin of -7.76%. Analysts forecast that Snap will report an EPS of -0.30 for the current fiscal year.
Insider Transactions and Institutional Activity
In related news, Chief Accounting Officer Rebecca Morrow sold 12,699 shares on November 17, 2023, at an average price of $8.34, totaling approximately $105,909.66. Following the sale, Morrow retains 466,603 shares valued at around $3.89 million. Similarly, Chief Financial Officer Derek Andersen sold 62,868 shares on the same day for a total of $524,319.12, reducing his position by 2.03%.
Over the last three months, insiders have sold a total of 393,341 shares valued at $3.17 million. Currently, corporate insiders hold 22.68% of Snap’s stock.
Significant changes have also been observed among institutional investors. Alyeska Investment Group L.P. acquired a new stake in Snap worth approximately $176.70 million during the third quarter, while Junto Capital Management LP took a new position valued at about $29.07 million. Voloridge Investment Management LLC increased its stake by 53.3%, now holding 10,300,911 shares valued at $79.42 million. Other notable investors include Assenagon Asset Management S.A., which raised its stake by 537.9%, and Holocene Advisors LP, which lifted its holdings by 895.9%. Institutional investors and hedge funds currently own 47.52% of Snap’s stock.
Overall, Snap’s recent performance and analyst revisions underscore the mixed sentiment surrounding the company. With analysts adjusting their ratings and price targets, investors are closely monitoring developments that may influence future stock performance.
