The stock of Snap Inc. (NYSE:SNAP) increased by $0.2 on Monday to finish at $9.45, up 2.16 percent. The last five days have seen an average of 15,436,021 shares of common stock traded. 20 times new highs were reached in the current year, with a gain of $0.50. The average number of shares traded over the last 20 days was 19,064,850, while the average volume over the last 50 days totaled 28,102,152.
SNAP stock dropped -11.52% since last month. On 08/18/23, the company’s shares reached a one-month low of $8.86. The stock touched a high of $13.89 on 07/13/23, after rallying from a low of $7.33 in 52 weeks. The price of SNAP stock has risen by 5.59% or $0.50 this year, reaching a new high 20 times. Still, the stock price is down -31.97% from the 52-week high.
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Insider Transactions
SNAP stock investors should be aware that Snap Inc. (SNAP) stock had its last reported insider trading activity 12 days ago on Aug 17. On Aug 17, Chief Operating Officer Hunter Jerry James sold 36,943 shares at $9.17 each. This transaction resulted in the insider making $338,911. On Aug 17, Thorpe Poppy sold 4,921 shares at a price of US$9.17. After the transaction, the insider now owns 46,264 shares. SVP of Engineering Young Eric had earlier sold 95,303 shares on Aug 16 for $9.24 a share. The transaction was completed for $880,342.
Valuation Metrics
Beta for the stock is 1.29. There are also a few other valuation ratios worth considering, including the trailing price-to-sales (P/S) ratio of 3.46, the price-to-book (PB) ratio of 6.06, and the price-to-cash flow ratio of 191.55.
Financial Health
For the three months ended June 29, Snap Inc.’s quick ratio was 5.20, while its current ratio was 5.20, indicating its ability to pay off its debt. The company’s long-term debt to equity ratio for the quarter ending June 29 is 1.50, and the total debt to equity ratio is 1.50. As far as profitability goes, gross margin for the trailing twelve months is 58.40% percent. Snap Inc.’s EBITDA margin for the year ended June 29 was -25.93%, whereas its operating margin stood at -33.30% for the same period. Based on annual data, it had gross profit of $2.79 billion and revenue of $4.6 billion.
Investors will also look at the performance of the company’s management in order to determine the potential profitability of their investment. SNAP’s return on assets (ROA) during the last 12 months has been -17.00%. There was a -22.50% return on investment (ROI) in the past year. In the meantime, the return on equity (ROE) for the last 12 months was -51.30%.
Earnings Surprise
According to Snap Inc.’s quarterly financial report for the quarter that ended June 29. A higher net income was reported in the quarter under review than the previous quarter. Net income for the quarter came in at $1.07 billion, while revenues fell by -4.05% to $988.61 million. It was predicted that Snap Inc.’s quarterly earnings would be -$0.02, but it ended up being -$0.04. EBITDA was -$362.81 million for the quarter. At the end of Snap Inc.’s most recent quarter ended June 29, its liabilities totaled 5.16 billion, while its total debt was $4.16 billion. Equity owned by shareholders amounts to $1.62 billion.
Technical Picture
Here’s a quick look at Snap Inc.’s (SNAP) price momentum from a technical perspective. As of 28 August, the RSI 9-day stood at 38.50%, suggesting the stock is Neutral, with a 31.55% historical volatility rate.
The stochastic %K and %D were 26.54% and 22.87% respectively, while the average true range (ATR) was 0.35. Based on the 14-day stochastic reading of 32.07%, the RSI (14) reading is 36.86%. On the 9-day MACD Oscillator, the stock is at 0.10, and the 14-day reading is at -0.18.
Analyst Ratings
Snap Inc. (NYSE: SNAP) was downgraded by China Renaissance to a a Sell rating in its latest research report. The stock was previously rated as a a Hold. Analysts have assigned Snap Inc. (SNAP) an Hold rating. SNAP is a stock that is recommended for selling by 4 brokerage firms, while 30 companies recommend holding. The stock is underweighted by 1 analyst. Among the analysts who rate the stock, 2 rates it overweight and 4 others recommend it as a buy.
What is SNAP’s price target for the next 12 months?
The current consensus forecast for the stock is between $6.00 and $15.00, with a median target price of $9.50. In analyzing these forecasts, the average price target given by analysts for Snap Inc. (SNAP) is $9.91.
