Snap Stock Upgraded on Advertising Optimism

SNAP shares are still below the 80-day moving average

Jan 14, 2019 at 10:07 AM
facebook X logo linkedin

Social media name Snap Inc (NYSE:SNAP) received some rare upbeat attention from the analyst community this morning. Citigroup upgraded its opinion on the security to "neutral" from "sell" and lifted its price target to $7 from $6, listing a number of potential positives for the company. To be more specific, Citi is expecting a new version of the Snapchat app for Android to come out soon, and also sees strong advertising growth going forward.

Most of Wall Street is seemingly negative on SNAP. There are 23 brokerage firms in coverage, and just two recommend buying the shares. Moreover, seven have "strong sell" recommendations. The average 12-month price target, meanwhile, is $7.84. With Snap last seen at $6.39, up 1.7% today, that represents a a nearly 23% premium to current levels.

Even with the stock grinding higher today, it remains below the 80-day moving average, a trendline that's sitting right above the current price and hasn't been topped since mid-August. The shares bottomed at $4.82 on Dec. 21.

Short sellers have taken action amid the equity's downtrend. Short interest represents 17.4% of the float, and going by average daily trading volume, it would take these bears more than seven sessions to cover. In a similar vein, put buying has picked up in recent weeks, according to Snap's 10-day put/call volume ratio of 0.94 at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which ranks in the 76th annual percentile.



Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on calls
238.5% GAIN on Oracle calls



Rainmaker Ads CGI