Snap Inc. has garnered a consensus recommendation of “Hold” from thirty-two research firms currently monitoring the company, according to MarketBeat Ratings. The mixed assessments reflect a landscape where three analysts assigned a sell rating, while twenty-two opted for hold and six analysts recommended a buy. Notably, one firm issued a strong buy rating. The average target price for Snap’s stock over the next twelve months stands at approximately $8.63.
Recent Analyst Commentary
Several analysts have recently reiterated their views on Snap. Citizens Jmp reaffirmed a “market perform” rating on February 5, 2024. On the same day, B. Riley Financial elevated Snap from a “neutral” to a “buy” and set a target price of $10.00. BMO Capital Markets also increased their price target from $12.00 to $13.00, assigning an “outperform” rating in their report dated November 6, 2023. Conversely, Canaccord Genuity Group set a price objective of $7.00, while Cantor Fitzgerald lowered their target from $9.00 to $7.00, maintaining a “neutral” stance.
Snap’s stock experienced a decline of 3.7% following its latest quarterly earnings report, released on February 4, 2024. The company reported an earnings per share (EPS) of $0.03, falling short of analysts’ expectations of $0.15 by $0.12. Snap’s net margin was negative at 7.76%, and its return on equity stood at -20.72%. Although the company generated $1.72 billion in revenue for the quarter, surpassing estimates of $1.70 billion, it still faced challenges compared to the previous year when it posted an EPS of $0.01. The quarterly revenue marked a 10.2% increase year-on-year.
Insider Transactions and Institutional Investments
In recent insider trading news, Snap’s Chief Technology Officer, Robert C. Murphy, sold 1,000,000 shares on February 10, 2024, at an average price of $5.36, amounting to a total value of $5,360,000. Following this sale, Murphy retained approximately 49,313,775 shares, worth about $264.32 million. This transaction represents a 1.99% decrease in his overall position. Additionally, insider Ajit Mohan sold 20,848 shares on January 16, 2024, for a total of $158,861.76. After this sale, Mohan owned 5,277,816 shares valued at $40.22 million, marking a 0.39% decrease in his stake.
Over the past three months, insiders sold a total of 2,393,341 shares valued at $13.80 million. Currently, insiders hold approximately 22.68% of Snap’s total stock.
Institutional investors have also adjusted their positions in Snap. McMillan Office Inc. acquired a new stake in the fourth quarter valued at around $1.1 million. Marsico Capital Management LLC also entered a new position worth approximately $5.62 million. Meanwhile, Mattson Financial Services LLC increased its holdings by 68.1%, now owning 41,069 shares valued at $331,000. Empowered Funds LLC grew its stake by 7.4%, owning 58,543 shares worth $472,000 after recent transactions. Inceptionr LLC also entered a new stake valued at around $303,000. Overall, institutional investors control about 47.52% of Snap’s stock.
Snap Inc. is widely recognized for its multimedia messaging application, Snapchat, allowing users to send disappearing photos, videos, and messages. The company also offers augmented reality tools, custom Lenses, and Filters, enhancing user engagement. Founded in 2011 by Evan Spiegel and Bobby Murphy, Snap continuously seeks to innovate in camera technology and augmented reality.
