Snap (NYSE:SNAP) CAO Sells $93,682.40 in Stock

Key Points

• Snap CAO Rebecca Morrow sold 16,729 shares on May 18 at an average price of $5.60, totaling $93,682.40. The sale was disclosed in an SEC filing and was tied to tax withholding obligations from equity award vesting.
• Snap’s latest earnings were mixed: the company posted a loss of $0.05 per share, missing estimates, while revenue came in at $1.53 billion, matching analyst expectations and rising 12.2% year over year.
• Analyst sentiment remains cautious, with MarketBeat reporting a consensus rating of “Hold” and a consensus price target of $7.91. Recent insider selling and mixed commentary have also weighed on sentiment.

Snap Inc. (NYSE:SNAP - Get Free Report) CAO Rebecca Morrow sold 16,729 shares of the company's stock in a transaction that occurred on Monday, May 18th. The shares were sold at an average price of $5.60, for a total value of $93,682.40. Following the sale, the chief accounting officer directly owned 512,811 shares of the company's stock, valued at approximately $2,871,741.60. This represents a 3.16% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. 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 Tuesday, May 19th, Rebecca Morrow sold 3,570 shares of Snap stock. The shares were sold at an average price of $5.74, for a total value of $20,491.80.
• 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 Stock Performance

Shares of Snap stock traded up $0.07 during trading hours on Wednesday, hitting $5.62. 25,514,032 shares of the company were exchanged, compared to its average volume of 44,708,984. The company has a current ratio of 3.53, a quick ratio of 3.53 and a debt-to-equity ratio of 1.67. The business has a 50-day moving average of $5.21 and a 200-day moving average of $6.44. Snap Inc. has a 1 year low of $3.81 and a 1 year high of $10.41. The stock has a market capitalization of $9.49 billion, a price-to-earnings ratio of -23.40 and a beta of 1.05.

Snap (NYSE:SNAP - Get Free Report) last announced its quarterly earnings data 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 analyst estimates of $1.53 billion. Snap had a negative net margin of 6.72% and a negative return on equity of 18.92%. The business's quarterly revenue was up 12.2% compared to the same quarter last year. During the same period in the prior year, the firm posted ($0.08) earnings per share. As a group, analysts expect that Snap Inc. will post -0.07 EPS for the current fiscal year.

Institutional Investors Weigh In On Snap

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Allworth Financial LP boosted its stake in Snap by 92.3% during the 3rd quarter. Allworth Financial LP now owns 3,293 shares of the company's stock valued at $25,000 after acquiring an additional 1,581 shares during the last quarter. Oak Harvest Investment Services acquired a new stake in shares of Snap in the fourth quarter worth $26,000. Arax Advisory Partners increased its holdings in 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 buying an additional 2,275 shares during the period. V Square Quantitative Management LLC acquired a new position in Snap in the fourth quarter valued at about $29,000. Finally, EverSource Wealth Advisors LLC boosted 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 during the last quarter. Hedge funds and other institutional investors own 47.52% of the company's stock.

Analyst Ratings Changes

Several research firms have recently commented on SNAP. Arete Research set a $7.30 target price on shares of Snap and gave the stock a "buy" rating in a research note on Tuesday, February 10th. Freedom Capital cut shares of Snap from a "strong-buy" rating to a "hold" rating in a research note on Tuesday, May 12th. Rosenblatt Securities restated a "neutral" rating and issued a $6.40 target price on shares of Snap in a research note on Thursday, April 16th. HSBC cut shares of Snap from a "hold" rating to a "hold" rating in a research note on Monday, April 27th. Finally, Citizens Jmp restated a "market perform" rating on shares of Snap in a research note on Thursday, February 5th. One research 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 given a Sell rating to the company's stock. According to data from MarketBeat, the company has a consensus rating of "Hold" and a consensus target price of $7.91.

Key Snap News

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

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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