Snap Inc. (SNAP) Performance and Fundamentals Dashboard tells a completely different story

Snap Inc. (NYSE: SNAP) stock jumped 0.59% on Tuesday to $10.26 against a previous-day closing price of $10.20. With 19.69 million shares changed hands, the volume of the stock remained lighter than its average volume of 35.58 million shares. During the session, the Internet Content & Information company that operates in wider Communication Services sector, reached to the highest price of $10.47 whereas the lowest price it dropped to was $10.02. The 52-week range on SNAP shows that it touched its highest point at $41.97 and its lowest point at $7.33 during that stretch. It currently has a 1-year price target of $11.65. Beta for the stock currently stands at 1.03.

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Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of SNAP was up-trending over the past week, with a rise of 6.10%, but this was up by 18.75% over a month. Three-month performance surged to 32.22% while six-month performance rose 3.12%. The stock lost -68.06% in the past year, while it has gained 14.64% so far this year. A look at the trailing 12-month EPS for SNAP yields -0.69 with Next year EPS estimates of 0.33. For the next quarter, that number is 0.11. This implies an EPS growth rate of 51.80% for this year and 103.73% for next year.

Float and Shares Shorts:

At present, 1.61 billion SNAP shares are outstanding with a float of 1.23 billion shares on hand for trading. On Oct 13, 2022, short shares totaled 56.3 million, which was 3.51% higher than short shares on Sep 14, 2022. In addition to Mr. Evan T. Spiegel as the firm’s Co-Founder, CEO & Director, Mr. Robert Murphy serves as its Co-Founder, CTO & Director.


Institutional Ownership:

Through their ownership of 63.92% of SNAP’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 30.76% of SNAP, in contrast to 20.85% held by mutual funds. Shares owned by individuals account for 11.76%. As the largest shareholder in SNAP with 9.41% of the stake, Fidelity Management & Research Co holds 127,825,708 shares worth 127,825,708. A second-largest stockholder of SNAP, The Vanguard Group, Inc., holds 89,371,318 shares, controlling over 6.58% of the firm’s shares. BlackRock Fund Advisors is the third largest shareholder in SNAP, holding 22,852,942 shares or 1.68% stake. With a 3.57% stake in SNAP, the Fidelity Blue Chip Growth Fund is the largest stakeholder. A total of 48,564,236 shares are owned by the mutual fund manager. The Vanguard Total Stock Market Index, which owns about 2.28% of SNAP stock, is the second-largest Mutual Fund holder. It holds 30,928,419 shares valued at 276.81 million. Vanguard Mid Cap Index Fund holds 1.74% of the stake in SNAP, owning 23,698,058 shares worth 212.1 million.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for SNAP since 40 analysts follow the stock currently. There are 7 analysts who recommend BUY ratings, while 3 suggest SELL ratings. Of the remaining analysts, 29 believe that the stock is worth HOLDING, 1 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With SNAP analysts setting a high price target of $18.00 and a low target of $7.00, the average target price over the next 12 months is $10.11. Based on these targets, SNAP could surge 75.44% to reach the target high and fall by -31.77% to reach the target low. Reaching the average price target will result in a decline of -1.46% from current levels.


EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. SNAP will report FY 2022 earnings on 02/06/2024. Analysts have provided yearly estimates in a range of -$0.74 being high and -$0.85 being low. For SNAP, this leads to a yearly average estimate of -$0.81. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Snap Inc. surprised analysts by $0.02 when it reported -$0.22 EPS against a consensus estimate of -$0.24. The surprise factor in the prior quarter was -$0.05. Based on analyst estimates, the high estimate for the next quarter is -$0.03 and the low estimate is -$0.16. The average estimate for the next quarter is thus -$0.11.

Summary of Insider Activity:

Insiders traded SNAP stock several times over the past three months with 8 Buys and 14 Sells. In these transactions, 566,512 shares were bought while 525,324 shares were sold. The number of buy transactions has increased to 32 while that of sell transactions has risen to 86 over the past year. The total number of shares bought during that period was 3,644,369 while 7,095,911 shares were sold.

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