Rebecca Morrow, the Chief Accounting Officer at Snap Inc . (NYSE:SNAP), recently sold 11,154 shares of the company's Class A Common Stock. The shares were sold at a weighted average price of $10.5464, resulting in a total transaction value of $117,634. This sale was conducted to cover tax withholding obligations related to the settlement of restricted stock units granted to Morrow. Following this transaction, Morrow retains direct ownership of 465,064 shares in Snap Inc. The shares were sold in multiple transactions at prices ranging from $10.47 to $10.615 per share.
In other recent news, Snap Inc. has been the subject of optimistic analysis from Loop Capital, which recently raised its price target for the company from $14 to $16. This adjustment was based on the firm's updated estimates and projections for 2026. Loop Capital noted potential for Snap's monetization to improve, given the growth in user engagement and the rebuilding of measurement systems.
In terms of recent financial performance, Snap Inc. reported a 15% year-over-year increase in revenue, reaching $1.37 billion, during Q3. This growth was largely driven by the company's direct response advertising business and the Snapchat+ subscription service. The number of daily active users rose to 443 million, which is a significant increase from the previous year.
Looking forward, Snap Inc. anticipates Q4 revenue to be between $1.51 billion and $1.56 billion. The company also announced a new $500 million share repurchase program. These recent developments underscore Snap's ongoing efforts to manage costs and improve monetization, despite a slight decline in brand-oriented advertising revenue.
InvestingPro Insights
While Rebecca Morrow's recent stock sale was primarily to cover tax obligations, it's worth examining Snap Inc.'s current financial position to provide context for investors. According to InvestingPro data, Snap's market capitalization stands at $17.81 billion, reflecting its significant presence in the social media landscape.
Despite recent challenges, Snap has shown resilience in its revenue growth. The company reported a 13.66% increase in revenue over the last twelve months, with quarterly revenue growth of 15.48% in Q3 2024. This growth trajectory aligns with an InvestingPro Tip indicating that 13 analysts have revised their earnings upwards for the upcoming period, suggesting potential optimism about Snap's financial performance.
However, profitability remains a concern. Snap's P/E ratio of -18.24 and an adjusted P/E ratio of -19.97 for the last twelve months highlight the company's current unprofitability. This is further confirmed by an InvestingPro Tip stating that Snap has not been profitable over the last twelve months. Nevertheless, another tip suggests that analysts predict the company will be profitable this year, which could signal a potential turnaround.
Investors should note that Snap operates with a moderate level of debt and its liquid assets exceed short-term obligations, as pointed out by InvestingPro Tips. This financial stability could provide some reassurance to shareholders amidst the company's path to profitability.
For those seeking a more comprehensive analysis, InvestingPro offers additional insights with 7 more tips available for Snap Inc. These tips could provide valuable context for understanding the company's financial health and future prospects.
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