Douglas Hott Sells 124,209 Shares of Snap (NYSE:SNAP) Stock

Key Points

• Snap CFO Douglas Hott sold 124,209 shares on May 18 at an average price of $5.60, for about $695,570. The filing says the sale was made to cover tax withholding obligations tied to vested equity awards.
• Snap shares rose 1.2% to $5.62, but the stock remains below its 200-day moving average and well off its 52-week high. The company’s market cap is about $9.49 billion.
• Recent results and sentiment remain mixed: Snap missed EPS expectations in its latest quarterly report even though revenue matched estimates and grew 12.2% year over year. Analysts currently rate the stock a consensus Hold, with an average target price of $7.91.

Snap Inc. (NYSE:SNAP - Get Free Report) CFO Douglas Hott sold 124,209 shares of the stock in a transaction on Monday, May 18th. The shares were sold at an average price of $5.60, for a total value of $695,570.40. Following the completion of the sale, the chief financial officer directly owned 2,571,149 shares of the company's stock, valued at $14,398,434.40. The trade was a 4.61% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards.

Douglas Hott also recently made the following trade(s):

• On Tuesday, May 19th, Douglas Hott sold 114,702 shares of Snap stock. The shares were sold at an average price of $5.67, for a total value of $650,360.34.

Snap Stock Up 1.2%

NYSE SNAP traded up $0.07 on Wednesday, reaching $5.62. The company had a trading volume of 25,514,032 shares, compared to its average volume of 44,708,984. The stock has a market capitalization of $9.49 billion, a P/E ratio of -23.40 and a beta of 1.05. The company's fifty day moving average is $5.21 and its 200 day moving average is $6.44. Snap Inc. has a 52-week low of $3.81 and a 52-week high of $10.41. The company has a quick ratio of 3.53, a current ratio of 3.53 and a debt-to-equity ratio of 1.67.

Snap (NYSE:SNAP - Get Free Report) last released its quarterly earnings results on Wednesday, May 6th. The company reported ($0.05) EPS for the quarter, missing analysts' consensus estimates of $0.09 by ($0.14). The company had revenue of $1.53 billion during the quarter, compared to analysts' expectations of $1.53 billion. Snap had a negative net margin of 6.72% and a negative return on equity of 18.92%. The company's quarterly revenue was up 12.2% compared to the same quarter last year. During the same period in the previous year, the company posted ($0.08) earnings per share. Sell-side analysts anticipate that Snap Inc. will post -0.07 earnings per share for the current fiscal year.

Trending Headlines about Snap

Here are the key news stories impacting Snap this week:

• Positive Sentiment: Snap appointed Luke Wood, the former President of Beats by Dr. Dre and former Apple executive, to its board of directors. Investors may view the hire as a positive signal for product, brand, and consumer-tech strategy. Luke Wood Joins Snap Inc. Board of Directors
• Neutral Sentiment: Snap’s latest earnings call was described as a “cautious comeback,” suggesting management may have sounded more measured on the recovery path rather than issuing a clearly bullish surprise. Snap Inc. Earnings Call Signals Cautious Comeback
• Negative Sentiment: Multiple insiders, including CFO Douglas Hott, General Counsel Zachary M. Briers, CAO Rebecca Morrow, and insider Ajit Mohan, sold shares in recent days. The company said the transactions were tied to tax withholding on equity vesting, which makes them less alarming, but the breadth of selling can still pressure sentiment. SEC filing for CFO sale

Analyst Ratings Changes

SNAP has been the subject of a number of analyst reports. UBS Group set a $8.00 price target on Snap in a research report on Thursday, May 7th. Weiss Ratings reaffirmed a "sell (e+)" rating on shares of Snap in a research report on Monday, April 20th. Piper Sandler reaffirmed a "neutral" rating on shares of Snap in a research report on Thursday, February 5th. Mizuho decreased their target price on Snap from $9.00 to $7.00 and set a "neutral" rating for the company in a research report on Thursday, February 5th. Finally, Royal Bank Of Canada decreased their target price on Snap from $10.00 to $8.00 and set a "sector perform" rating for the company in a research report on Thursday, May 7th. One analyst has rated the stock with a Strong Buy rating, ten have given a Buy rating, twenty-two have given a Hold rating and two have issued a Sell rating to the company's stock. Based on data from MarketBeat.com, Snap currently has an average rating of "Hold" and an average target price of $7.91.

Institutional Investors Weigh In On Snap

Several large investors have recently made changes to their positions in the business. Empowered Funds LLC grew its stake in shares of Snap by 13.3% during the 1st quarter. Empowered Funds LLC now owns 40,393 shares of the company's stock worth $352,000 after acquiring an additional 4,754 shares during the period. Prudential Financial Inc. bought a new position in shares of Snap during the 2nd quarter worth $136,000. Investment Management Corp of Ontario grew its stake in shares of Snap by 104.0% during the 2nd quarter. Investment Management Corp of Ontario now owns 61,513 shares of the company's stock worth $535,000 after acquiring an additional 31,357 shares during the period. Nebula Research & Development LLC bought a new position in shares of Snap during the 2nd quarter worth $1,675,000. Finally, The Manufacturers Life Insurance Company grew its stake in shares of Snap by 52.0% during the 2nd quarter. The Manufacturers Life Insurance Company now owns 89,337 shares of the company's stock worth $776,000 after acquiring an additional 30,561 shares during the period. 47.52% of the stock is owned by hedge funds and other institutional investors.

About Snap

Snap Inc is a camera and social media company best known for developing and operating Snapchat, a multimedia messaging application that allows users to send photos, videos and messages that disappear after being viewed. In addition to its core messaging service, Snap offers a suite of augmented reality (AR) tools, including custom Lenses and Filters, that enable users and third-party developers to create interactive and immersive experiences. The company also provides advertising solutions that allow brands to engage audiences through Snap Ads, Sponsored Lenses and Discover content on the platform.

Founded in 2011 by Evan Spiegel and Bobby Murphy, Snap has continually focused on innovation in camera technology and AR.

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