Contrarius Group Holdings Ltd Makes New $10.26 Million Investment in Snap Inc. $SNAP

Key Points

• Contrarius Group bought a new Q3 stake in Snap, acquiring 1,330,206 shares valued at about $10.26 million, representing roughly 0.08% of the company.
• Insider selling has been notable recently: CFO Derek Andersen and CAO Rebecca Morrow sold shares on Feb 17, and insiders have sold 2,526,487 shares worth $13,435,587 in the last three months.
• Snap missed EPS estimates (reported $0.03 vs. $0.15 expected) but topped revenue forecasts ($1.72B vs. $1.70B); the stock trades around $5.26, market cap ~$8.88B, and analysts have a consensus Hold rating with a $8.17 target price.

Contrarius Group Holdings Ltd bought a new stake in Snap Inc. (NYSE:SNAP - Free Report) during the third quarter, according to the company in its most recent disclosure with the SEC. The firm bought 1,330,206 shares of the company's stock, valued at approximately $10,256,000. Contrarius Group Holdings Ltd owned approximately 0.08% of Snap as of its most recent filing with the SEC.

A number of other institutional investors also recently modified their holdings of SNAP. Mirae Asset Global Investments Co. Ltd. bought a new stake in shares of Snap during the 3rd quarter worth $33,000. Grey Fox Wealth Advisors LLC bought a new position in shares of Snap in the third quarter worth about $53,000. CoreCap Advisors LLC lifted its holdings in shares of Snap by 826.1% in the third quarter. CoreCap Advisors LLC now owns 9,363 shares of the company's stock worth $72,000 after acquiring an additional 8,352 shares during the last quarter. West Tower Group LLC acquired a new stake in shares of Snap in the 3rd quarter valued at approximately $77,000. Finally, Fox Run Management L.L.C. bought a new stake in shares of Snap during the 3rd quarter valued at approximately $82,000. Institutional investors and hedge funds own 47.52% of the company's stock.

Insider Buying and Selling at Snap

In other news, CFO Derek Andersen sold 63,041 shares of the stock in a transaction on Tuesday, February 17th. The shares were sold at an average price of $4.70, for a total transaction of $296,292.70. Following the completion of the sale, the chief financial officer directly owned 3,892,617 shares in the company, valued at $18,295,299.90. This represents a 1.59% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. Also, CAO Rebecca Morrow sold 16,499 shares of Snap stock in a transaction on Tuesday, February 17th. The stock was sold at an average price of $4.70, for a total transaction of $77,545.30. Following the transaction, the chief accounting officer directly owned 466,682 shares of the company's stock, valued at $2,193,405.40. This represents a 3.41% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last three months, insiders have sold 2,526,487 shares of company stock worth $13,435,587.

Snap Stock Up 1.0%

Shares of NYSE:SNAP opened at $5.26 on Tuesday. The firm has a market cap of $8.88 billion, a P/E ratio of -19.48 and a beta of 0.83. Snap Inc. has a 12-month low of $4.65 and a 12-month high of $10.41. The business has a fifty day simple moving average of $6.74 and a 200 day simple moving average of $7.40. The company has a quick ratio of 3.56, a current ratio of 3.56 and a debt-to-equity ratio of 1.53.

Snap (NYSE:SNAP - Get Free Report) last issued its quarterly earnings results on Wednesday, February 4th. The company reported $0.03 earnings per share for the quarter, missing the consensus estimate of $0.15 by ($0.12). Snap had a negative net margin of 7.76% and a negative return on equity of 20.72%. The company had revenue of $1.72 billion during the quarter, compared to analyst estimates of $1.70 billion. During the same period in the previous year, the company posted $0.01 EPS. The company's quarterly revenue was up 10.2% on a year-over-year basis. Analysts predict that Snap Inc. will post -0.3 earnings per share for the current year.

Wall Street Analysts Forecast Growth

Several equities analysts recently commented on the stock. Guggenheim reissued a "neutral" rating and issued a $6.50 price objective on shares of Snap in a research note on Thursday, February 5th. Arete Research set a $7.30 price target on Snap and gave the company a "buy" rating in a research note on Tuesday, February 10th. Citizens Jmp restated a "market perform" rating on shares of Snap in a research report on Thursday, February 5th. TD Cowen lowered their target price on Snap from $9.00 to $8.00 and set a "hold" rating for the company in a report on Thursday, February 5th. Finally, BMO Capital Markets increased their target price on Snap from $12.00 to $13.00 and gave the company an "outperform" rating in a research report on Thursday, November 6th. One equities research analyst has rated the stock with a Strong Buy rating, five have given a Buy rating, twenty have assigned a Hold rating and three have given a Sell rating to the company's stock. Based on data from MarketBeat.com, Snap presently has a consensus rating of "Hold" and a consensus target price of $8.17.

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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