Key Points
- Ajit Mohan sold 28,058 shares of Snap on April 16 at an average price of $6.02 for about $168,909 to cover tax withholding on vested equity; he still holds 5,102,676 shares (a 0.55% reduction, roughly $30.7M).
- Snap is undergoing a major restructuring — management cut about 1,000 roles (~16%) to boost AI efficiencies and cut costs, prompting mixed analyst reactions (BMO raised its target to $15 while many keep Neutral/Hold ratings) amid a shareholder probe and PR scrutiny of leadership.
Snap Inc. (NYSE:SNAP - Get Free Report) General Counsel Zachary Briers sold 11,437 shares of the company's stock in a transaction dated Wednesday, April 15th. The stock was sold at an average price of $6.04, for a total value of $69,079.48. Following the completion of the transaction, the general counsel owned 2,774,031 shares of the company's stock, valued at $16,755,147.24. The trade was a 0.41% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at the SEC website.
Snap Price Performance
SNAP opened at $6.03 on Friday. The stock has a market capitalization of $10.18 billion, a P/E ratio of -22.31 and a beta of 0.91. Snap Inc. has a 12-month low of $3.81 and a 12-month high of $10.41. The stock has a 50-day moving average price of $4.91 and a 200-day moving average price of $6.78. The company has a current ratio of 3.56, a quick ratio of 3.56 and a debt-to-equity ratio of 1.53.
Snap (NYSE:SNAP - Get Free Report) last issued its earnings results on Wednesday, February 4th. The company reported $0.03 earnings per share for the quarter, missing the consensus estimate of $0.15 by ($0.12). The company had revenue of $1.72 billion for the quarter, compared to analysts' expectations of $1.70 billion. Snap had a negative net margin of 7.76% and a negative return on equity of 20.72%. The company's revenue was up 10.2% compared to the same quarter last year. During the same quarter in the prior year, the company earned $0.01 earnings per share. Equities analysts predict that Snap Inc. will post -0.3 earnings per share for the current fiscal year.
Institutional Inflows and Outflows
Several institutional investors have recently made changes to their positions in SNAP. Empowered Funds LLC raised its position in shares of Snap by 13.3% in the 1st quarter. Empowered Funds LLC now owns 40,393 shares of the company's stock worth $352,000 after acquiring an additional 4,754 shares in the last quarter. Prudential Financial Inc. bought a new position in shares of Snap in the 2nd quarter worth approximately $136,000. Investment Management Corp of Ontario increased its position in 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 buying an additional 31,357 shares in the last quarter. Nebula Research & Development LLC bought a new position in Snap during the 2nd quarter valued at approximately $1,675,000. Finally, The Manufacturers Life Insurance Company increased its position in Snap by 52.0% during the 2nd quarter. The Manufacturers Life Insurance Company now owns 89,337 shares of the company's stock valued at $776,000 after buying an additional 30,561 shares in the last quarter. Institutional investors own 47.52% of the company's stock.
Snap News Roundup
Here are the key news stories impacting Snap this week:
- Positive Sentiment: Large workforce cut aimed at AI efficiencies and cost savings — management will eliminate ~1,000 roles (about 16% of staff), closing ~300 open roles; the market initially reacted favorably on the prospect of faster path to profitability. Snap cuts 1,000 jobs as AI drives wave of tech sector layoffs
- Positive Sentiment: Analyst bullish move — BMO Capital raised its price target to $15 (from $13) and kept an Outperform rating, signaling some analysts see the restructuring as a potential catalyst for re-rating. BMO Raises Snap’s Target After 1,000-Job Cut
- Positive Sentiment: Other tactical bullish calls — Roth Capital and commentators highlighted Snap’s long-standing AI/AR assets and suggested the stock can be a tactical buy if cost cuts accelerate margin improvement. Is Snap Inc. Really Worth It After Roth Capital Names It A Positive Tactical Trade?
- Neutral Sentiment: Mixed analyst positioning — Guggenheim and Rosenblatt reaffirmed Neutral ratings with modest targets ($6.50 and $6.40), implying limited near-term upside from current levels absent clearer proof the restructuring boosts profits. Benzinga coverage of analyst ratings
- Neutral Sentiment: Market reaction has been volatile — Zacks and other outlets noted a recent intraday surge on heavy volume but warned momentum may not persist without earnings revisions. Snap (SNAP) Surges 7.9%: Is This an Indication of Further Gains?
- Neutral Sentiment: Analyst/feature pieces evaluating the restructure — commentary such as Seeking Alpha’s “Cutting The Bloat” treats the layoffs as a possible necessary reset but flags execution risk. Snap: Cutting The Bloat
- Negative Sentiment: Investor lawsuit probe launched — Pomerantz LLP is investigating potential claims on behalf of shareholders, raising legal and disclosure risk that could create downside if investigations progress. Pomerantz investigates claims on behalf of Snap investors
- Negative Sentiment: Reputational/leadership hit — CEO Evan Spiegel faced backlash after appearing at Coachella shortly before announcing layoffs, a PR headwind that can weigh on sentiment and employee morale. Snap CEO faces backlash over Coachella appearance
- Negative Sentiment: Critical coverage and activist pressure — opinion pieces question Snap’s structural competitiveness, and activist Irenic Capital’s push for deeper cost savings increases governance scrutiny and execution risk. Snap Was Always A Terrible Company Snapchat parent company cuts 1,000 jobs
Analyst Upgrades and Downgrades
SNAP has been the subject of several analyst reports. Arete Research set a $7.30 target price on Snap and gave the company a "buy" rating in a report on Tuesday, February 10th. Roth Mkm set a $7.00 target price on Snap in a report on Thursday, February 5th. Citizens Jmp restated a "market perform" rating on shares of Snap in a report on Thursday, February 5th. BMO Capital Markets increased their target price on Snap from $13.00 to $15.00 and gave the company an "outperform" rating in a report on Wednesday. Finally, Cantor Fitzgerald lowered their price target on Snap from $9.00 to $7.00 and set a "neutral" rating for the company in a research report on Thursday, February 5th. One analyst has rated the stock with a Strong Buy rating, five have given a Buy rating, twenty have assigned a Hold rating and three have given a Sell rating to the company. According to data from MarketBeat.com, Snap has an average rating of "Hold" and an average price target of $8.17.
Get Our Latest Stock Report on SNAP
Snap Company Profile
(
Get Free Report)
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.
Featured Stories
This instant news alert was generated by narrative science technology and financial data from InsiderTrades.com in order to provide readers with the fastest and most accurate reporting. Please send any questions or comments about this story to [email protected].
