Snap Inc. (SNAP): A Great Stock For Handling Current Market Conditions?

    SBUX Stock
    SBUX Stock

    T. Rowe Price Associates, Inc. (I.. recently announced the acquisition of new stake in Snap Inc. (NYSE:SNAP). The institutional investor has increased its shareholding in the Communication Services company by 29.18% to 113.52 million shares with purchase of 25.64 million shares. This fresh investment now brings its stake to 9.37% valued currently at $2.55 billion. In addition, The Vanguard Group, Inc. raised its holdings by 2.27 million to 85.23 million shares. And Edgewood Management LLC has lifted its position by 6.12% or 3.78 million shares – to 65.57 million shares.

    With over 21.55 million Snap Inc. (SNAP) shares trading Monday and a closing price of $22.59 on the day, the dollar volume was approximately $486.92 million. The shares have shown a positive weekly performance of 8.24% and its price on 08/31/20 gained nearly 1.26%. Currently, there are 1.45B common shares owned by the public and among those 890.90M shares have been available to trade.

    An analysis of what Wall Street brokers have to say about the expected price targets for this stock gives us this picture: 38 analysts who have offered their price forecasts for SNAP have a consensus price objective of $25.82. The analysts have set the share’s price value over the next 12 months at a high of $31.00 and a low of $18.00 should the stock experience a downside. Incidentally, analysts’ outlook for the Snap Inc. stock is 2.30 for the next 12 months. The average price target is 12.71% above its last price level and an upside to the estimated low will see the stock lose -25.5% over that period. But an upside of 27.13% will see the stock hit the forecast high price target while mean target price for the stock is $27.38.

    Insiders at the company have transacted a total of 161 times over the past 12 months, according to data filed with the U.S. Securities and Exchange Commission (SEC). 25 of these insider trades were purchases, accounting for 12,912,248 shares. Insider sales of the common stock occurred on 136 occasions, with total insider shares sold totaling 32,348,391 shares.

    The top 3 mutual fund holders in Snap Inc. are Advisors Inner Circle – Edgewood, Vanguard Total Stock Market Index, and T Rowe Price Growth Stock Fund. Advisors Inner Circle – Edgewood owns 33.05 million shares of the company’s stock, all valued at over $740.92 million. The company bought an additional 10.14 million shares recently to bring their total holdings to about 2.73% of the shares outstanding. Vanguard Total Stock Market Index sold -0.1 million shares to see its total holdings shrink to 28.71 million shares valued at over $643.7 million and representing 2.37% of the shares outstanding. T Rowe Price Growth Stock Fund sold -2.76 million shares to bring its total holdings to over 25.43 million shares at a value of $570.24 million. T Rowe Price Growth Stock Fund now owns shares totaling to 2.10% of the shares outstanding.

    Shares of Snap Inc. (NYSE: SNAP) opened at $22.83, up $0.52 from a prior closing price of $22.31. However, the script later closed the day at $22.59, up 1.26%. The company’s stock has a 5-day price change of 8.24% and 14.38% over the past three months. SNAP shares are trading 38.33% year to date (YTD), with the 12-month market performance up to 42.70% higher. It has a 12-month low price of $7.89 and touched a high of $26.76 over the same period. Currently, 21.55 million shares have been traded, compared to an average intraday trading volume of 26.65 million shares. The stock is trading above its simple moving averages at the SMA20, SMA50, and SMA200, as the current price level is off by 4.34%, -1.34%, and 28.10% respectively.

    Institutional ownership of Snap Inc. (NYSE: SNAP) shares accounts for 59.90% of the company’s 1.45B shares outstanding. Mutual fund holders own 25.57%, while other institutional holders and individual stakeholders account for 31.28% and 16.08% respectively.

    It has a market capitalization of $32.34B and a beta (3y monthly) value of 1.62. The earnings-per-share (ttm) stands at -$0.77. Price movements for the stock have been influenced by the stock’s volatility, which stands at 3.84% over the week and 3.73% over the month.

    Analysts forecast that Snap Inc. (SNAP) will achieve an EPS of -$0.05 for the current quarter, $0.02 for the next quarter and $0.1 for 2021. The lowest estimate earnings-per-share for the quarter is -$0.08 while analysts give the company a high EPS estimate of -$0.02. Comparatively, EPS for the current quarter was -$0.04 a year ago. Earnings per share for the fiscal year are expected to increase by 22.20%, and 155.60% over the next financial year.

    If you are looking to buy this stock, then you may note that the average analyst recommendation by 38 brokerage firm advisors rate Snap Inc. (SNAP) as a “Moderate Buy” at a consensus score of 2.30. Specifically, 22 Wall Street analysts polled rate the stock as a buy, while 14 of the 38 advise that investors “hold,” and 1 rated it as a “Sell.”

    Looking at the support for the SNAP, a number of firms have released research notes about the stock. Pivotal Research Group stated their Buy rating for the stock in a research note on July 22, 2020, with the firm’s price target at $21.50-$27.75. Guggenheim coverage for the Snap Inc. (SNAP) stock in a research note released on July 22, 2020 offered a Neutral rating with a price target of. Rosenblatt was of a view on July 21, 2020 that the stock is Buy, while Canaccord Genuity gave the stock Hold rating on July 01, 2020, issuing a price target of $15- $25. Wells Fargo on their part issued Overweight rating on June 26, 2020.


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