Snap Inc. (NYSE:SNAP) finished Thursday with an addition of $0.13 to close at $9.37, an upside of 1.41 percent. An average of 14,836,479 shares of common stock have been traded in the last five days. There was a gain of $0.33 in the past week, and it reached a new high 11 times over the past 12 months. The last 20 days have seen an average of 21,848,295 shares traded, while the 50-day average volume stands at 28,418,281.
SNAP stock has decreased by -12.67% in the last month. The company shares reached their 1-month lowest point of $8.86 on 08/18/23. With the stock rallying to its 52-week high on 07/13/23, shares of the company touched a low of $7.33 and a high of $13.89 in 52 weeks. It has reached a new high 20 times so far this year and achieved 4.69% or $0.42 in price. In spite of this, the price is down -32.54% from the 52-week high.
Insider Transactions
SNAP stock investors should be aware that Snap Inc. (SNAP) stock had its last reported insider trading activity 8 days ago on Aug 17. In this transaction, the insider spent $338,911. Director, Thorpe Poppy, disposed of 4,921 shares at a price of $9.17 on Aug 17. The insider now owns more than $45,126 worth of shares. Prior to that, SVP of Engineering Young Eric went on to Sale 95,303 shares at $9.24 each on Aug 16. An amount of $880,342 was transacted.
Valuation Metrics
Snap Inc. (SNAP) stock’s beta is 1.29. Other valuation ratios to consider include the trailing price-to-sales (P/S) ratio at 3.34, the price-to-book (PB) ratio at 6.01, and the price-to-cash flow ratio at 184.63.
Financial Health
The quick ratio of Snap Inc. for the three months ended June 29 was 5.20, and the current ratio was 5.20, indicating that the company is able to meet its debt obligations. Further, the company has a long term debt to equity ratio of 1.50 and a total debt to equity ratio of 1.50 for the quarter ending June 29. Snap Inc.’s EBITDA margin for the year ending June 29 is -25.93%, while its operating margin for the same period stands at -33.30%. Its gross profit as reported stood at $2.79 billion compared to revenue of $4.6 billion.
For investors, determining the potential profitability of the investment also depends on the performance of the company’s management. In the past 12 months, Snap Inc.’s return on assets was -17.00%.
Earnings Surprise
In the quarter under review, the net income was up than the previous quarter. The company posted a net income of -$377.31 million in the quarter, while revenues of -$328.67 million were shrunk -11.86%. The analyst consensus anticipated Snap Inc.’s latest quarter earnings to come in at -$0.04 per share, but it turned out to be -$0.02, a 50.00% surprise. For the quarter, EBITDA amounted to -$362.81 million. Shareholders own equity worth $1.62 billion.
Technical Picture
From a technical analysis perspective, let’s take a brief look at Snap Inc. (SNAP) price momentum. RSI 9-day as of the close on 24 August was 32.29%, suggesting the stock is Neutral, with historical volatility in this time frame at 33.04%.
As of today, SNAP’s price is $9.28 +3.65% or $0.33 from its 5-day moving average. SNAP is currently trading -9.29% lower than its 20-day SMA and -16.41% lower than its 100-day SMA. However, the stock’s current price level is -9.21% below the SMA50 and +2.52% above the SMA200.
The stochastic %K and %D were 20.45% and 18.82%, respectively, and the average true range (ATR) was 0.35. With the 14-day stochastic at 26.36% and the average true range at 0.40, the RSI (14) stands at 33.54%. The stock has reached -0.06 on the 9-day MACD Oscillator while the 14-day reading was at -0.42.
Analyst Ratings
China Renaissance downgraded Snap Inc. (NYSE: SNAP) to a a Sell rating in its most recent analyst report. Previously, the stock was rated as a Hold. The consensus rating for Snap Inc. (SNAP) among analysts is Hold. According to current brokerage recommendations, 4 brokerage firms advise that investors sell SNAP, while 30 suggest investors hold. There are 1 analyst who rate the stock as underweight. The stock is rated overweight by 2 analysts, while 4 others rate it as a “buy”.
What is SNAP’s price target for the next 12 months?
Analysts predict a range of price targets between $6.00 and $15.00, with a median target of $9.50. Taking a look at these predictions, the average price target given by analysts for Snap Inc. (SNAP) stock is $9.91.
