Snap (NYSE:SNAP) shares are trending nearly 1% higher today after the parent company of social media platform Snapchat disclosed debt buybacks for its 0.25% and 0.75% convertible senior notes due in 2025 and 2026, respectively.
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Under the privately negotiated deals, the firm agreed to buy back its 2025 notes for $97.8 million ($100 million face value) and its 2026 notes for $336.4 million ($351.2 million face value). As a result, Snap is saving money on debt repayments. The company anticipates these repurchases to be settled on February 14.
Importantly, this move comes after SNAP’s recent fourth-quarter results. A combination of lower-than-expected numbers for the quarter and a weak outlook has led to an over 30% slump in the company’s stock price over the past five sessions. Earlier, Snap outlined plans to lower its global headcount by nearly 10% in a bid to enhance flexibility and drive long-term growth.
What Is the Future of Snap Stock?
Overall, the Street has a Hold consensus rating on Snap, and the average SNAP price target of $14.30 implies a 28.7% potential upside in the stock. Despite recent price declines, the company’s share price still remains nearly 12% higher over the past six months.
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