Snap (NYSE:SNAP) CAO Rebecca Morrow Sells 3,570 Shares

Key Points

• Snap CAO Rebecca Morrow sold 3,570 shares on May 19 at an average price of $5.74, totaling about $20,492. The filing says the sale was made to cover tax withholding tied to vesting equity awards.
• Morrow has also sold shares recently, including 16,729 shares on May 18 and 3,175 shares on February 19, indicating a pattern of insider selling in recent months.
• Snap’s latest earnings were mixed: the company reported a smaller-than-expected loss of $0.05 per share while revenue came in at $1.53 billion, matching estimates and rising 12.2% year over year. Despite that, analysts still rate the stock a consensus Hold with an average price target of $7.91.

Snap Inc. (NYSE:SNAP - Get Free Report) CAO Rebecca Morrow sold 3,570 shares of the stock in a transaction on Tuesday, May 19th. The shares were sold at an average price of $5.74, for a total value of $20,491.80. Following the sale, the chief accounting officer directly owned 509,241 shares in the company, valued at approximately $2,923,043.34. The trade was a 0.70% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards.

Rebecca Morrow also recently made the following trade(s):

• On Monday, May 18th, Rebecca Morrow sold 16,729 shares of Snap stock. The shares were sold at an average price of $5.60, for a total value of $93,682.40.
• On Thursday, February 19th, Rebecca Morrow sold 3,175 shares of Snap stock. The shares were sold at an average price of $4.84, for a total value of $15,367.00.

Snap Price Performance

Shares of SNAP traded up $0.07 during trading hours on Wednesday, reaching $5.62. 25,514,032 shares of the company traded hands, 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 PE ratio of -23.40 and a beta of 1.05. Snap Inc. has a fifty-two week low of $3.81 and a fifty-two week high of $10.41. The stock has a fifty day simple moving average of $5.21 and a 200 day simple moving average of $6.44.

Snap (NYSE:SNAP - Get Free Report) last posted its quarterly earnings data on Wednesday, May 6th. The company reported ($0.05) EPS for the quarter, missing analysts' consensus estimates 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 for the quarter, compared to analyst estimates of $1.53 billion. During the same period in the previous year, the business earned ($0.08) EPS. The firm's revenue was up 12.2% on a year-over-year basis. As a group, research analysts predict that Snap Inc. will post -0.07 EPS for the current fiscal year.

Analyst Ratings Changes

SNAP has been the subject of a number of research analyst reports. Barclays raised shares of Snap from an "overweight" rating to an "overweight" rating in a research note on Monday, April 27th. Rothschild & Co Redburn raised shares of Snap from a "neutral" rating to a "buy" rating and set a $10.00 price objective for the company in a research note on Monday, April 27th. Evercore reaffirmed a "mixed" rating on shares of Snap in a research note on Thursday, February 5th. Cantor Fitzgerald dropped their price objective on shares of Snap from $9.00 to $7.00 and set a "neutral" rating for the company in a research note on Thursday, February 5th. Finally, BNP Paribas Exane downgraded shares of Snap to a "neutral" rating in a research note on Monday, April 27th. One research analyst has rated the stock with a Strong Buy rating, ten have assigned a Buy rating, twenty-two have issued a Hold rating and two have issued a Sell rating to the stock. According to data from MarketBeat.com, Snap currently has a consensus rating of "Hold" and an average price target of $7.91.

Hedge Funds Weigh In On Snap

Hedge funds and other institutional investors have recently modified their holdings of the company. Allworth Financial LP lifted its stake in shares of 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 purchasing an additional 1,581 shares in the last quarter. Oak Harvest Investment Services acquired a new position in shares of Snap in the 4th quarter valued at about $26,000. Arax Advisory Partners lifted its stake in shares of Snap by 220.0% in the 4th quarter. Arax Advisory Partners now owns 3,309 shares of the company's stock valued at $27,000 after purchasing an additional 2,275 shares in the last quarter. V Square Quantitative Management LLC acquired a new position in shares of Snap in the 4th quarter valued at about $29,000. Finally, EverSource Wealth Advisors LLC lifted its stake in shares of Snap by 561.4% in the 4th quarter. EverSource Wealth Advisors LLC now owns 3,618 shares of the company's stock valued at $29,000 after purchasing an additional 3,071 shares in the last quarter. 47.52% of the stock is owned by institutional investors and hedge funds.

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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