Snap (NYSE:SNAP) CFO Douglas Hott Sells 131,884 Shares of Stock

Key Points

• Snap CFO Douglas Hott sold 131,884 shares at an average price of $5.20, generating approximately $685,797. The sale covered tax-withholding obligations tied to vested equity awards and reduced his ownership by 5.37%.
• Snap shares rose 2.5% to $5.24, while the company’s latest quarterly results exceeded expectations: revenue reached $1.60 billion, up 18.9% year over year, and adjusted EPS beat estimates despite remaining negative.
• Wall Street’s consensus view remains “Hold,” with 23 analysts rating the stock Hold and an average price target of $7.65. Institutional investors own 47.52% of Snap’s outstanding shares.

Snap Inc. (NYSE:SNAP - Get Free Report) CFO Douglas Hott sold 131,884 shares of the firm's stock in a transaction on Monday, August 17th. The shares were sold at an average price of $5.20, for a total value of $685,796.80. Following the transaction, the chief financial officer owned 2,324,563 shares in the company, valued at approximately $12,087,727.60. This trade represents a 5.37% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards.

Snap Stock Up 2.5%

Shares of SNAP stock traded up $0.13 on Wednesday, hitting $5.24. The stock had a trading volume of 29,931,596 shares, compared to its average volume of 48,138,145. The company has a debt-to-equity ratio of 1.75, a current ratio of 2.94 and a quick ratio of 2.94. The business has a 50 day moving average of $4.86 and a 200 day moving average of $5.17. Snap Inc. has a 12-month low of $3.81 and a 12-month high of $9.28. The stock has a market cap of $8.86 billion, a price-to-earnings ratio of -29.11 and a beta of 1.03.

Snap (NYSE:SNAP - Get Free Report) last released its quarterly earnings results on Monday, August 3rd. The company reported ($0.10) earnings per share for the quarter, topping the consensus estimate of ($0.12) by $0.02. The business had revenue of $1.60 billion for the quarter, compared to analysts' expectations of $1.54 billion. Snap had a negative net margin of 4.90% and a negative return on equity of 14.61%. The firm's revenue for the quarter was up 18.9% compared to the same quarter last year. During the same period in the previous year, the company earned ($0.16) earnings per share. As a group, analysts expect that Snap Inc. will post -0.05 EPS for the current year.

Hedge Funds Weigh In On Snap

Large investors have recently modified their holdings of the business. Allworth Financial LP boosted its holdings in Snap by 92.3% in the 3rd quarter. Allworth Financial LP now owns 3,293 shares of the company's stock worth $25,000 after buying an additional 1,581 shares during the period. Arax Advisory Partners grew its position in shares of Snap by 220.0% in the fourth 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. EverSource Wealth Advisors LLC raised its stake in shares of Snap by 561.4% during 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 period. Fifth Third Bancorp lifted its holdings in Snap by 6,678.0% during the 1st quarter. Fifth Third Bancorp now owns 6,778 shares of the company's stock worth $31,000 after purchasing an additional 6,678 shares in the last quarter. Finally, NFSG Corp lifted its holdings in Snap by 52.7% during the 1st quarter. NFSG Corp now owns 8,400 shares of the company's stock worth $39,000 after purchasing an additional 2,900 shares in the last quarter. Hedge funds and other institutional investors own 47.52% of the company's stock.

Wall Street Analyst Weigh In

A number of brokerages have issued reports on SNAP. Cantor Fitzgerald raised their target price on Snap from $5.00 to $6.00 and gave the company a "neutral" rating in a research report on Tuesday, August 4th. TD Cowen began coverage on shares of Snap in a research report on Monday, April 27th. They issued a "buy" rating on the stock. Royal Bank Of Canada reduced their target price on shares of Snap from $10.00 to $8.00 and set a "sector perform" rating for the company in a research report on Thursday, May 7th. Stifel Nicolaus set a $7.50 price target on shares of Snap in a report on Tuesday, August 4th. Finally, Susquehanna reiterated a "neutral" rating on shares of Snap in a research note on Tuesday, August 4th. Two research analysts have rated the stock with a Strong Buy rating, eight have issued a Buy rating, twenty-three have assigned a Hold rating and three have given a Sell rating to the company. According to MarketBeat, the stock presently has an average rating of "Hold" and a consensus target price of $7.65.

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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