Snap (NYSE:SNAP) Shares Down 2.4% – Should You Sell?

Shares of Snap Inc. (NYSE:SNAP) dropped 2.4% on Wednesday . The company traded as low as $10.76 and last traded at $10.78. Approximately 1,809,466 shares were traded during mid-day trading, a decline of 93% from the average daily volume of 26,861,854 shares. The stock had previously closed at $11.04.

Analyst Upgrades and Downgrades

SNAP has been the subject of several research analyst reports. Hsbc Global Res downgraded Snap from a “strong-buy” rating to a “hold” rating in a research report on Friday, August 2nd. Citigroup lowered their price objective on shares of Snap from $16.00 to $11.00 and set a “neutral” rating for the company in a research report on Monday, August 12th. Morgan Stanley raised shares of Snap from an “underweight” rating to an “equal weight” rating and raised their target price for the stock from $12.00 to $16.00 in a research report on Tuesday, July 23rd. Susquehanna lowered their price target on Snap from $15.00 to $12.00 and set a “neutral” rating for the company in a report on Friday, August 2nd. Finally, Stifel Nicolaus reduced their price objective on Snap from $13.00 to $11.00 and set a “hold” rating on the stock in a report on Monday. One analyst has rated the stock with a sell rating, twenty-four have issued a hold rating and seven have assigned a buy rating to the stock. According to MarketBeat, Snap has a consensus rating of “Hold” and an average price target of $13.77.

Snap Price Performance

The company has a quick ratio of 3.98, a current ratio of 3.98 and a debt-to-equity ratio of 1.74. The firm has a market cap of $17.17 billion, a PE ratio of -12.91 and a beta of 1.01. The stock has a 50 day moving average price of $9.80 and a two-hundred day moving average price of $12.71.

Snap (NYSE:SNAP) last issued its quarterly earnings results on Thursday, August 1st. The company reported ($0.13) earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of ($0.15) by $0.02. The business had revenue of $1.24 billion for the quarter, compared to analyst estimates of $1.25 billion. Snap had a negative net margin of 23.49% and a negative return on equity of 42.84%. As a group, equities analysts expect that Snap Inc. will post -0.47 earnings per share for the current year.

Insider Buying and Selling

In other Snap news, CTO Robert C. Murphy sold 1,000,000 shares of the business’s stock in a transaction dated Tuesday, August 6th. The stock was sold at an average price of $8.69, for a total transaction of $8,690,000.00. Following the sale, the chief technology officer now owns 58,553,813 shares in the company, valued at approximately $508,832,634.97. The trade was a 0.00 % decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. In related news, General Counsel Michael J. O’sullivan sold 18,000 shares of the firm’s stock in a transaction on Monday, September 30th. The shares were sold at an average price of $10.81, for a total transaction of $194,580.00. Following the completion of the transaction, the general counsel now owns 489,058 shares of the company’s stock, valued at $5,286,716.98. This trade represents a 0.00 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, CTO Robert C. Murphy sold 1,000,000 shares of the company’s stock in a transaction on Tuesday, August 6th. The shares were sold at an average price of $8.69, for a total transaction of $8,690,000.00. Following the completion of the sale, the chief technology officer now directly owns 58,553,813 shares in the company, valued at approximately $508,832,634.97. The trade was a 0.00 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 1,510,352 shares of company stock worth $13,446,353 in the last 90 days. Insiders own 22.68% of the company’s stock.

Hedge Funds Weigh In On Snap

Institutional investors and hedge funds have recently modified their holdings of the stock. Marshall Wace LLP grew its holdings in Snap by 587.3% during the second quarter. Marshall Wace LLP now owns 14,667,597 shares of the company’s stock worth $243,629,000 after acquiring an additional 12,533,653 shares during the period. Vanguard Group Inc. increased its holdings in shares of Snap by 3.8% during the 4th quarter. Vanguard Group Inc. now owns 95,317,701 shares of the company’s stock valued at $1,613,729,000 after purchasing an additional 3,503,230 shares in the last quarter. TB Alternative Assets Ltd. increased its holdings in shares of Snap by 144.5% during the 1st quarter. TB Alternative Assets Ltd. now owns 5,094,800 shares of the company’s stock valued at $58,488,000 after purchasing an additional 3,011,400 shares in the last quarter. Discovery Capital Management LLC CT acquired a new position in shares of Snap in the 2nd quarter valued at $22,591,000. Finally, Assenagon Asset Management S.A. boosted its holdings in Snap by 74.0% during the second quarter. Assenagon Asset Management S.A. now owns 2,824,354 shares of the company’s stock worth $46,913,000 after buying an additional 1,201,565 shares in the last quarter. Institutional investors and hedge funds own 47.52% of the company’s stock.

About Snap

Snap Inc operates as a technology company in North America, Europe, and internationally. The company offers Snapchat, a visual messaging application with various tabs, such as camera, visual messaging, snap map, stories, and spotlight that enable people to communicate visually through short videos and images.