Taking the lead: Snap Inc. (SNAP)

Snap Inc. (NYSE: SNAP) stock jumped 0.41% on Tuesday to $9.80 against a previous-day closing price of $9.76. With 14.39 million shares changed hands, the volume of the stock remained lighter than its average volume of 29.92 million shares. During the session, the Internet Content & Information company that operates in wider Communication Services sector, reached to the highest price of $9.92 whereas the lowest price it dropped to was $9.62. The 52-week range on SNAP shows that it touched its highest point at $23.31 and its lowest point at $7.33 during that stretch. It currently has a 1-year price target of $9.35. Beta for the stock currently stands at 1.19.

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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 13.82%, but this was down by -4.11% over a month. Three-month performance dropped to -1.01% while six-month performance fell -6.84%. The stock lost -57.87% in the past year, while it has gained 9.50% so far this year. A look at the trailing 12-month EPS for SNAP yields -0.87 with Next year EPS estimates of 0.17. For the next quarter, that number is -0.04. This implies an EPS growth rate of -184.00% for this year and 135.62% for next year. EPS is expected to grow by 40.92% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 21.40%.

Float and Shares Shorts:

At present, 1.58 billion SNAP shares are outstanding with a float of 1.23 billion shares on hand for trading. On Apr 27, 2023, short shares totaled 53.23 million, which was 3.32% higher than short shares on Mar 30, 2023. 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:

Other institutions hold 29.20% of SNAP, in contrast to 22.80% held by mutual funds. Shares owned by individuals account for 12.27%. As the largest shareholder in SNAP with 8.91% of the stake, Fidelity Management & Research Co holds 118,310,398 shares worth 118,310,398. A second-largest stockholder of SNAP, The Vanguard Group, Inc., holds 88,507,986 shares, controlling over 6.67% of the firm’s shares. Capital Research & Management Co is the third largest shareholder in SNAP, holding 30,526,812 shares or 2.30% stake. With a 3.96% stake in SNAP, the Fidelity Blue Chip Growth Fund is the largest stakeholder. A total of 52,536,474 shares are owned by the mutual fund manager. The Vanguard Total Stock Market ETF, which owns about 2.32% of SNAP stock, is the second-largest Mutual Fund holder. It holds 30,737,005 shares valued at 267.72 million. Vanguard Mid Cap Index Fund holds 1.75% of the stake in SNAP, owning 23,249,880 shares worth 202.51 million.

An Overview of Recent Financials:

Understanding a company as a customer does not mean you will understand it as an investor. The wise investor uses quantitative research to analyze metrics such as revenue, net income, and earnings. In its fiscal quarter reported on Mar 30, 2023, SNAP reported revenue of $1.11B and operating income of -$400.94M. The EBITDA in the recently reported quarter was -$330.23M and diluted EPS was -$0.26.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for SNAP since 0 analysts follow the stock currently. 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 $16.00 and a low target of $6.00, the average target price over the next 12 months is $9.19. Based on these targets, SNAP could surge 63.27% to reach the target high and fall by -38.78% to reach the target low. Reaching the average price target will result in a decline of -6.22% 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.

Summary of Insider Activity:

Insiders traded SNAP stock several times over the past three months with 2 Buys and 8 Sells. In these transactions, 126,039 shares were bought while 267,812 shares were sold. The number of buy transactions has increased to 26 while that of sell transactions has risen to 61 over the past year. The total number of shares bought during that period was 7,367,513 while 5,501,436 shares were sold.

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