Snap Stock Extends Rebound on Analyst Praise

The social media stock looks to be on the mend after last month's selloff

Digital Content Manager
Apr 6, 2021 at 9:35 AM
facebook twitter linkedin

The shares of Snap Inc (NYSE:SNAP) are up 4.5% at $56.52 this morning, buzzing on analyst praise. Specifically, Atlantic Equities lifted its rating to "overweight" from "neutral," citing strength in its ad business and pipeline products, which could help grow revenue.

Atlantic Equities joins an already bullish brokerage bunch. Prior to today's coverage, 21 analysts considered SNAP a "buy" or better, while six said "hold" or worse. Plus, the 12-month consensus price target of $74.03 stands at a 36.8% premium to current levels.

The security seems to be bouncing back from the selloff it suffered from late-February through March, with support at the 120-day moving average providing a springboard late last month. The stock will still have to contend with pressure at the 20-day moving average, though, which has acted as a ceiling on the charts for nearly three weeks. Year-over-year, SNAP is up 345%.

Premiums on SNAP are still relatively inexpensive, as the equity's Schaeffer's Volatility Index (SVI) of 60% sits in the 22nd percentile of its annual range, implying option traders are pricing in relatively low volatility expectations at the moment. 

Plus, the security's Schaeffer's Volatility Scorecard (SVS) sits at a high 92 out of 100. This means SNAP has exceeded volatility expectations during the past 12 months -- a boon for options buyers.


Minimize Risk While Maximizing Profits

There is no options strategy like this one, which consistently minimizes risk while maintaining maximum profits. Perfect for traders looking for ways to control risk, reduce losses, and increase the likelihood of success when trading calls and puts. The Schaeffer’s team has over 41 years of options trading success targeting +100% gains on every trade. Rest assured your losses are effectively limited to your initial cost at the time of making your move! Don't waste another second... join us right now before the next trade is released! 



Special Offers from Schaeffer's Trading Partners