Snap Inc. (NYSE: SNAP) has received a consensus rating of “Hold” from thirty-two research firms following its latest quarterly earnings report. According to MarketBeat Ratings, three analysts have assigned a sell rating, while twenty-two have indicated a hold rating. Additionally, six analysts have issued a buy rating, and one has given a strong buy rating for the company. The average target price set by brokers over the past year stands at approximately $8.63.
Several analysts recently commented on Snap’s stock performance. On February 5, 2024, Citizens Jmp reaffirmed a “market perform” rating. B. Riley Financial upgraded Snap from a “neutral” to a “buy” rating, setting a target price of $10.00. BMO Capital Markets raised its price target from $12.00 to $13.00, assigning an “outperform” rating in a report on November 6, 2023. Conversely, Canaccord Genuity Group set a price objective of $7.00, while Cantor Fitzgerald lowered its target from $9.00 to $7.00, maintaining a “neutral” stance.
Quarterly Earnings Show Mixed Results
Snap’s recent earnings report, released on February 4, 2024, revealed a $0.03 earnings per share (EPS), falling short of analysts’ expectations of $0.15 by $0.12. The company reported a negative net margin of 7.76% and a negative return on equity of 20.72%. Revenue reached $1.72 billion, slightly exceeding analysts’ forecasts of $1.70 billion. This represents a 10.2% increase compared to the same quarter of the previous year.
Research analysts predict that Snap will post an EPS of -0.3 for the current year. The mixed performance in earnings and revenue has led to varied reactions from investors and analysts alike.
Insider Transactions and Institutional Investments
In other developments, Snap’s Chief Technology Officer, Robert C. Murphy, sold 1,000,000 shares on February 10, 2024, at an average price of $5.36, totaling $5,360,000. Post-sale, Murphy retains 49,313,775 shares, valued at approximately $264.32 million, reflecting a 1.99% decrease in his position. Another insider, Ajit Mohan, sold 20,848 shares on January 16, 2024, for around $158,861.76, reducing his holdings to 5,277,816 shares.
In the past three months, insiders sold 2,393,341 shares worth $13.8 million. Currently, company insiders hold 22.68% of Snap’s stock.
Recent changes in institutional investor positions further underscore the stock’s dynamics. Notably, McMillan Office Inc. acquired a new stake worth approximately $1.1 million in the fourth quarter. Marsico Capital Management LLC invested about $5.62 million during the same period. Mattson Financial Services LLC increased its stake by 68.1%, now owning 41,069 shares valued at $331,000. Institutional investors collectively own 47.52% of Snap’s stock.
Snap Inc., founded in 2011 by Evan Spiegel and Bobby Murphy, is renowned for its multimedia messaging application, Snapchat. The platform allows users to send photos, videos, and messages that disappear after viewing. Beyond its core messaging services, Snap offers a suite of augmented reality tools, enhancing user interaction and advertising capabilities.
As Snap navigates through these mixed ratings and performance metrics, the market will be keenly observing how the company adapts to evolving challenges in the social media landscape.
