Analysts also come in this morning with bull notes
Social media heavyweight Snap Inc (NYSE: SNAP) entered the profit denomination last night, with first quarter earnings and sales beating estimates and the upgraded Android version helping to attract more users. Additionally, the company expects revenue to grow 80% in the second quarter as Covid-19 restrictions ease. The brokerage bundle is already reacting – three analysts have raised their price targets, with Cowen and Company’s highest jump to $ 90. However, MKM Partners lowered its price target to $ 81.
The bottom line and the mostly positive round of analyst comments give SNAP a boost. The stock was last up 6.4% to trade at $ 60.72. With that she was ready to break a five-day streak of bad luck. The security’s 100-day moving average has emerged as support for this recent decline, although the $ 64 level is still emerging as a potential area of rejection on the charts. Year-over-year, SNAP posted an impressive 281.4% increase.
Analysts tend to be optimistic about SNAP. Of the 29 in coverage, 24 say “Buy” or better, while five say “Hold” or worse. Additionally, the 12 month consensus price target of $ 76.68 is a 24% premium over current levels.
Short sellers have slowly started reaching the exits. Short interest fell 2% over the most recent period, although further easing of pessimism could put additional winds on the back of Snap stock. The 60.33 million shares sold represent 6.4% of the available free float of equity and would take more than two days to reach the average daily trading pace.
As of today’s option activity, 116,000 calls have crossed the band, five times the intraday average and almost twice the number of puts traded. The weekly and expiring 4 / 23-65 strike call is the most popular, followed by the 62 strike call in the same series, the latter opening positions.
What’s more, security Schaeffer’s Volatility Scorecard (SVS) ranks 91 out of 100, indicating that Snap stock has exceeded volatility expectations for the past 12 months – a boon for option buyers.