Insider Selling: Snap (NYSE:SNAP) Insider Sells 6,923 Shares of Stock

Key Points

• Snap insider Ajit Mohan sold 6,923 shares on June 16 at an average price of $5.58, totaling about $38,630. The filing says the sale was made to cover tax withholding obligations tied to vesting equity awards.
• After the transaction, Mohan still held 5.05 million shares of Snap, and the sale reduced his position by only 0.14%. He had also sold shares in May and April, according to the article.
• Snap’s stock was trading weakly, recently down to $4.65, while the company also reported a mixed quarterly update with EPS below expectations but revenue matching estimates and rising 12.2% year over year. Analyst sentiment remains cautious, with a consensus rating of Hold and an average price target of $7.79.

Snap Inc. (NYSE:SNAP - Get Free Report) insider Ajit Mohan sold 6,923 shares of Snap stock in a transaction that occurred on Tuesday, June 16th. The stock was sold at an average price of $5.58, for a total transaction of $38,630.34. Following the completion of the transaction, the insider directly owned 5,050,968 shares in the company, valued at $28,184,401.44. This represents a 0.14% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. 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 Monday, May 18th, Ajit Mohan sold 44,785 shares of Snap stock. The stock was sold at an average price of $5.60, for a total transaction of $250,796.00.
• On Thursday, April 16th, Ajit Mohan sold 28,058 shares of Snap stock. The shares were sold at an average price of $6.02, for a total transaction of $168,909.16.

Snap Price Performance

NYSE:SNAP traded down $0.09 during trading hours on Thursday, reaching $4.65. 60,774,658 shares of the company's stock were exchanged, compared to its average volume of 42,440,916. 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 company has a market capitalization of $7.85 billion, a P/E ratio of -19.38 and a beta of 1.03. Snap Inc. has a 12 month low of $3.81 and a 12 month high of $10.41. The business's 50-day simple moving average is $5.64 and its two-hundred day simple moving average is $6.08.

Snap (NYSE:SNAP - Get Free Report) last posted its quarterly 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). Snap had a negative net margin of 6.72% and a negative return on equity of 18.92%. The company had revenue of $1.53 billion during the quarter, compared to the consensus estimate of $1.53 billion. During the same period in the prior year, the company posted ($0.08) EPS. Snap's quarterly revenue was up 12.2% on a year-over-year basis. Sell-side analysts expect that Snap Inc. will post -0.06 EPS for the current fiscal year.

Trending Headlines about Snap

Here are the key news stories impacting Snap this week:

• Positive Sentiment: Snap continues to expand its AR ecosystem, including the launch of SPECS and growing developer support, which could strengthen its long-term wearable computing strategy.
• Positive Sentiment: Snap reportedly acquired Illumix to boost its augmented reality capabilities, adding another asset aimed at improving immersive experiences and digital-physical integration. Snap Inc (SNAP) Buys Illumix. Augmented Reality in Focus
• Neutral Sentiment: High call-option activity suggests some traders are betting on a potential rebound or higher volatility in Snap shares.
• Neutral Sentiment: Snap also announced new safeguards for younger users, which may help with trust and regulatory concerns but is unlikely to be a major near-term stock catalyst.
• Negative Sentiment: Wall Street’s reaction to the SPECS launch has been skeptical, with investors questioning whether a premium-priced AR headset can gain meaningful consumer traction or improve profitability soon. Snap (SNAP) Launches $2,195 SPECS As AR Bet Faces Investor Doubt
• Negative Sentiment: Several reports noted that Snap shares fell after the AR glasses unveiling, reflecting concern that the product is too costly and could deepen investor doubts about the company’s hardware ambitions. Will SPECS Glasses Help Expand Snap's Augmented Reality Reach?

Institutional Trading of Snap

Institutional investors have recently made changes to their positions in the stock. Empowered Funds LLC grew its position in Snap by 13.3% during the first quarter. Empowered Funds LLC now owns 40,393 shares of the company's stock valued at $352,000 after purchasing an additional 4,754 shares in the last quarter. Prudential Financial Inc. acquired a new stake in shares of Snap during the 2nd quarter valued at $136,000. Investment Management Corp of Ontario grew its holdings 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 valued at $535,000 after acquiring an additional 31,357 shares in the last quarter. Nebula Research & Development LLC purchased a new position in shares of Snap during the 2nd quarter valued at $1,675,000. Finally, The Manufacturers Life Insurance Company boosted its position in Snap by 52.0% during the second quarter. The Manufacturers Life Insurance Company now owns 89,337 shares of the company's stock valued at $776,000 after purchasing an additional 30,561 shares during the last quarter. 47.52% of the stock is currently owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In

SNAP has been the topic of several recent analyst reports. Rosenblatt Securities restated a "neutral" rating and set a $6.40 price objective on shares of Snap in a report on Thursday, April 16th. HSBC downgraded shares of Snap from a "hold" rating to a "hold" rating in a research report on Monday, April 27th. BMO Capital Markets upped their price target on shares of Snap from $13.00 to $15.00 and gave the company an "outperform" rating in a research report on Wednesday, April 15th. Barclays raised shares of Snap from an "overweight" rating to an "overweight" rating in a research note on Monday, April 27th. Finally, The Goldman Sachs Group reduced their target price on Snap from $8.00 to $7.00 and set a "neutral" rating for the company in a report on Thursday, May 7th. One investment analyst has rated the stock with a Strong Buy rating, nine have assigned a Buy rating, twenty-three have assigned a Hold rating and two have issued a Sell rating to the company's stock. According to data from MarketBeat, Snap currently has an average rating of "Hold" and an average price target of $7.79.

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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