Snap (NYSE:SNAP) Trading Down 5% Following Weak Earnings

Snap Inc. (NYSE:SNAP)’s stock price was down 5% during trading on Wednesday following a dissappointing earnings announcement. The company traded as low as $11.09 and last traded at $11.02. Approximately 11,020,009 shares changed hands during trading, a decline of 64% from the average daily volume of 30,392,756 shares. The stock had previously closed at $11.60.

The company reported $0.01 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.14 by ($0.13). Snap had a negative net margin of 18.49% and a negative return on equity of 35.60%.

Analyst Ratings Changes

A number of research analysts have weighed in on SNAP shares. Royal Bank of Canada reiterated a “sector perform” rating and set a $16.00 price objective on shares of Snap in a research report on Wednesday, October 30th. Wells Fargo & Company downgraded shares of Snap from an “overweight” rating to an “equal weight” rating and cut their price target for the company from $15.00 to $11.00 in a report on Wednesday. B. Riley boosted their target price on Snap from $11.00 to $12.00 and gave the company a “neutral” rating in a research report on Wednesday, October 30th. Piper Sandler reiterated a “neutral” rating and issued a $13.00 price target (up from $12.00) on shares of Snap in a report on Wednesday, October 30th. Finally, Needham & Company LLC reissued a “buy” rating and set a $640.00 price target on shares of Snap in a research note on Thursday, December 5th. One analyst has rated the stock with a sell rating, twenty-three have given a hold rating and eight have assigned a buy rating to the company’s stock. According to MarketBeat.com, the company has a consensus rating of “Hold” and an average target price of $36.87.

Insider Activity at Snap

In related news, CAO Rebecca Morrow sold 11,154 shares of the firm’s stock in a transaction on Monday, November 18th. The stock was sold at an average price of $10.55, for a total value of $117,674.70. Following the completion of the transaction, the chief accounting officer now owns 465,064 shares in the company, valued at $4,906,425.20. This trade represents a 2.34 % decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, General Counsel Michael J. O’sullivan sold 12,315 shares of the business’s stock in a transaction dated Monday, November 18th. The shares were sold at an average price of $10.54, for a total value of $129,800.10. Following the sale, the general counsel now owns 1,195,567 shares in the company, valued at approximately $12,601,276.18. The trade was a 1.02 % decrease in their position. The disclosure for this sale can be found here. Insiders have sold 445,184 shares of company stock valued at $4,968,189 in the last ninety days.

Institutional Inflows and Outflows

Institutional investors have recently modified their holdings of the company. V Square Quantitative Management LLC purchased a new stake in Snap in the third quarter valued at $29,000. Paladin Wealth LLC purchased a new stake in shares of Snap in the third quarter worth about $30,000. Advisors Asset Management Inc. grew its holdings in Snap by 141.9% during the third quarter. Advisors Asset Management Inc. now owns 2,782 shares of the company’s stock worth $30,000 after acquiring an additional 1,632 shares during the period. Comprehensive Financial Planning Inc. PA acquired a new stake in Snap during the fourth quarter worth about $32,000. Finally, Brooklyn Investment Group purchased a new position in Snap during the third quarter valued at approximately $41,000. 47.52% of the stock is currently owned by hedge funds and other institutional investors.

Snap Price Performance

The company has a debt-to-equity ratio of 1.63, a current ratio of 4.04 and a quick ratio of 4.04. The stock has a fifty day simple moving average of $11.51 and a 200-day simple moving average of $10.89. The company has a market capitalization of $17.89 billion, a price-to-earnings ratio of -18.39 and a beta of 0.99.

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.