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

Snap Inc. (NYSE:SNAP)’s share price dropped 5% 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 mid-day 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 EPS for the quarter, missing analysts’ consensus estimates of $0.14 by ($0.13). Snap had a negative return on equity of 35.60% and a negative net margin of 18.49%.

Analyst Ratings Changes

SNAP has been the subject of a number of recent research reports. Susquehanna upped their price objective on Snap from $12.00 to $13.00 and gave the stock a “neutral” rating in a research note on Wednesday. Cantor Fitzgerald increased their price target on Snap from $8.00 to $9.00 and gave the stock a “neutral” rating in a research note on Wednesday, October 30th. Loop Capital increased their price target on Snap from $14.00 to $16.00 and gave the stock a “buy” rating in a research note on Tuesday, November 5th. Piper Sandler reissued a “neutral” rating and issued a $13.00 price target (up previously from $12.00) on shares of Snap in a research note on Wednesday, October 30th. Finally, Citigroup increased their price target on Snap from $13.00 to $13.50 and gave the stock a “neutral” rating in a research note on Wednesday. One equities research analyst has rated the stock with a sell rating, twenty-three have given a hold rating and eight have issued a buy rating to the company’s stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Hold” and a consensus price target of $36.87.

Insider Activity

In related news, General Counsel Michael J. O’sullivan sold 12,315 shares of the stock in a transaction dated Monday, November 18th. The stock was sold at an average price of $10.54, for a total value of $129,800.10. Following the completion of the sale, the general counsel now directly owns 1,195,567 shares of the company’s stock, valued at approximately $12,601,276.18. This represents a 1.02 % decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, SVP Eric Young sold 112,020 shares of the stock in a transaction dated Monday, November 18th. The stock was sold at an average price of $10.55, for a total value of $1,181,811.00. Following the completion of the sale, the senior vice president now directly owns 2,791,048 shares of the company’s stock, valued at approximately $29,445,556.40. This represents a 3.86 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 445,184 shares of company stock valued at $4,968,189 over the last three months.

Institutional Investors Weigh In On Snap

Several hedge funds have recently bought and sold shares of the business. Geode Capital Management LLC increased its position in Snap by 5.2% in the 3rd quarter. Geode Capital Management LLC now owns 11,697,455 shares of the company’s stock worth $124,742,000 after purchasing an additional 575,324 shares during the last quarter. TB Alternative Assets Ltd. increased its position in Snap by 105.6% in the 3rd quarter. TB Alternative Assets Ltd. now owns 7,981,847 shares of the company’s stock worth $85,406,000 after purchasing an additional 4,098,847 shares during the last quarter. Charles Schwab Investment Management Inc. increased its position in Snap by 6.3% in the 4th quarter. Charles Schwab Investment Management Inc. now owns 6,601,172 shares of the company’s stock worth $71,095,000 after purchasing an additional 389,812 shares during the last quarter. Connor Clark & Lunn Investment Management Ltd. increased its position in Snap by 49.6% in the 3rd quarter. Connor Clark & Lunn Investment Management Ltd. now owns 3,910,459 shares of the company’s stock worth $41,842,000 after purchasing an additional 1,297,348 shares during the last quarter. Finally, Sumitomo Mitsui Trust Group Inc. increased its position in Snap by 0.5% in the 4th quarter. Sumitomo Mitsui Trust Group Inc. now owns 3,245,128 shares of the company’s stock worth $34,950,000 after purchasing an additional 15,294 shares during the last quarter. 47.52% of the stock is owned by hedge funds and other institutional investors.

Snap Stock Performance

The company has a current ratio of 4.04, a quick ratio of 4.04 and a debt-to-equity ratio of 1.63. The company has a market capitalization of $17.90 billion, a price-to-earnings ratio of -18.40 and a beta of 0.99. The firm has a 50-day simple moving average of $11.51 and a two-hundred day simple moving average of $10.89.

Snap Company Profile

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.