Insider Selling: Snap (NYSE:SNAP) Insider Sells 44,785 Shares of Stock

Key Points

• Snap insider Ajit Mohan sold 44,785 shares on May 18 at an average price of $5.60, totaling about $250,796. The sale was filed with the SEC and was made to cover tax withholding obligations tied to vesting equity awards.
• Snap shares were modestly higher, rising 1.2% to $5.62 on lighter-than-average trading volume. The stock remains well below its 12-month high of $10.41 and below its 200-day moving average of $6.44.
• Recent insider selling and mixed fundamentals may be weighing on sentiment, even as the company posted 12.2% year-over-year revenue growth in its latest quarter. Snap’s earnings still missed expectations, and analysts currently rate the stock a consensus Hold with a $7.91 target price.

Snap Inc. (NYSE:SNAP - Get Free Report) insider Ajit Mohan sold 44,785 shares of the company's stock in a transaction that occurred on Monday, May 18th. The stock was sold at an average price of $5.60, for a total value of $250,796.00. Following the completion of the sale, the insider owned 5,057,891 shares in the company, valued at $28,324,189.60. The trade was a 0.88% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards.

Ajit Mohan also recently made the following trade(s):

• On Thursday, April 16th, Ajit Mohan sold 28,058 shares of Snap stock. The stock was sold at an average price of $6.02, for a total value of $168,909.16.
• On Monday, March 16th, Ajit Mohan sold 27,743 shares of Snap stock. The stock was sold at an average price of $4.59, for a total transaction of $127,340.37.

Snap Stock Up 1.2%

Snap stock traded up $0.07 during trading hours on Wednesday, hitting $5.62. The stock had a trading volume of 25,514,032 shares, compared to its average volume of 44,708,984. The company has a quick ratio of 3.53, a current ratio of 3.53 and a debt-to-equity ratio of 1.67. The stock has a market capitalization of $9.49 billion, a P/E ratio of -23.40 and a beta of 1.05. Snap Inc. has a 12-month low of $3.81 and a 12-month high of $10.41. The stock's 50-day moving average price is $5.21 and its 200-day moving average price is $6.44.

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

Hedge Funds Weigh In On Snap

A number of institutional investors and hedge funds have recently bought and sold shares of the stock. Allworth Financial LP increased its holdings in Snap by 92.3% in the 3rd quarter. Allworth Financial LP now owns 3,293 shares of the company's stock valued at $25,000 after buying an additional 1,581 shares during the period. Arax Advisory Partners increased its position in Snap by 220.0% during the 4th quarter. Arax Advisory Partners now owns 3,309 shares of the company's stock worth $27,000 after buying an additional 2,275 shares during the period. V Square Quantitative Management LLC bought a new position in Snap in the fourth quarter valued at about $29,000. EverSource Wealth Advisors LLC lifted its stake in shares of Snap by 561.4% in the fourth quarter. EverSource Wealth Advisors LLC now owns 3,618 shares of the company's stock worth $29,000 after acquiring an additional 3,071 shares during the period. Finally, Mirae Asset Global Investments Co. Ltd. acquired a new position in Snap in the third quarter valued at approximately $33,000. Institutional investors own 47.52% of the company's stock.

Analyst Upgrades and Downgrades

Several brokerages have issued reports on SNAP. Mizuho dropped 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. TD Cowen initiated coverage on shares of Snap in a research note on Monday, April 27th. They issued a "buy" rating for the company. KeyCorp raised shares of Snap from a "sector weight" rating to an "overweight" rating in a research report on Monday, April 27th. Wells Fargo & Company boosted their price target on shares of Snap from $6.00 to $7.00 and gave the stock an "equal weight" rating in a research note on Thursday, May 7th. Finally, Weiss Ratings reaffirmed a "sell (e+)" rating on shares of Snap in a research report on Monday, April 20th. One analyst has rated the stock with a Strong Buy rating, ten have assigned a Buy rating, twenty-two have given a Hold rating and two have issued a Sell rating to the company. Based on data from MarketBeat.com, Snap presently has a consensus rating of "Hold" and a consensus target price of $7.91.

Key Stories Impacting 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

Snap Company Profile

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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