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

Snap Inc. (NYSE:SNAP)’s share price dropped 5% on Wednesday following a dissappointing earnings announcement. The stock traded as low as $11.09 and last traded at $11.02. Approximately 11,020,009 shares were traded 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 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

Several equities research analysts have commented on the stock. Cantor Fitzgerald boosted their price target on shares of Snap from $8.00 to $9.00 and gave the stock a “neutral” rating in a research report on Wednesday, October 30th. Truist Financial boosted their price target on shares of Snap from $13.00 to $14.00 and gave the stock a “hold” rating in a research report on Wednesday, October 30th. Loop Capital boosted their price target on shares of Snap from $14.00 to $16.00 and gave the stock a “buy” rating in a research report on Tuesday, November 5th. Guggenheim reissued a “buy” rating and set a $12.11 price target on shares of Snap in a research report on Tuesday, December 3rd. Finally, Stifel Nicolaus lowered their price objective on shares of Snap from $13.00 to $11.00 and set a “hold” rating on the stock in a research note on Monday, October 14th. One research 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. Based on data from MarketBeat.com, the company has an average rating of “Hold” and a consensus price target of $36.87.

Insider Transactions at Snap

In other Snap news, SVP Eric Young sold 112,020 shares of the firm’s stock in a transaction on Monday, November 18th. The shares were 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 in the company, valued at approximately $29,445,556.40. This trade represents a 3.86 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, CAO Rebecca Morrow sold 2,812 shares of the firm’s stock in a transaction on Monday, December 16th. The stock was sold at an average price of $11.44, for a total transaction of $32,169.28. Following the completion of the sale, the chief accounting officer now owns 430,252 shares of the company’s stock, valued at $4,922,082.88. The trade was a 0.65 % 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 worth $4,968,189 over the last three months.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in the business. The Manufacturers Life Insurance Company lifted its position in shares of Snap by 16.4% during the second quarter. The Manufacturers Life Insurance Company now owns 65,276 shares of the company’s stock valued at $1,084,000 after purchasing an additional 9,185 shares in the last quarter. Cetera Investment Advisers raised its position in Snap by 23.7% in the second quarter. Cetera Investment Advisers now owns 104,470 shares of the company’s stock worth $1,735,000 after acquiring an additional 20,038 shares during the period. Sanctuary Advisors LLC bought a new stake in Snap in the second quarter worth about $994,000. Handelsbanken Fonder AB raised its position in Snap by 6.7% in the third quarter. Handelsbanken Fonder AB now owns 187,407 shares of the company’s stock worth $2,005,000 after acquiring an additional 11,830 shares during the period. Finally, Dynamic Advisor Solutions LLC bought a new stake in Snap in the third quarter worth about $832,000. 47.52% of the stock is currently owned by institutional investors and hedge funds.

Snap Trading Down 5.9 %

The firm has a market cap of $18.31 billion, a P/E ratio of -19.00 and a beta of 0.99. The company has a quick ratio of 4.04, a current ratio of 4.04 and a debt-to-equity ratio of 1.63. The firm’s 50-day simple moving average is $11.52 and its 200 day simple moving average is $10.89.

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.