Key Points
- Snap General Counsel Zachary Briers sold 71,745 shares at an average price of $5.67, worth about $406,794, reducing his ownership by 2.71%. The filing says the sale was made to cover tax withholding obligations tied to vested equity awards.
- Snap’s recent 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. Analysts currently expect the company to post a full-year EPS loss of 0.07.
- Multiple insider sales were reported around the same time, though each was described as tax-related rather than a sign of declining confidence. Separately, Snap appointed former Apple and Beats executive Luke Wood to its board, which may be viewed as a positive leadership addition.
Snap Inc. (NYSE:SNAP - Get Free Report) CAO Rebecca Morrow sold 3,570 shares of the stock in a transaction that occurred on Tuesday, May 19th. The stock was sold at an average price of $5.74, for a total transaction of $20,491.80. Following the completion of the sale, the chief accounting officer directly owned 509,241 shares of the company's stock, valued at $2,923,043.34. This represents a 0.70% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. 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 stock was sold at an average price of $5.60, for a total transaction of $93,682.40.
- On Thursday, February 19th, Rebecca Morrow sold 3,175 shares of Snap stock. The stock was sold at an average price of $4.84, for a total transaction of $15,367.00.
Snap Trading Up 1.2%
Shares of SNAP opened at $5.62 on Thursday. The company has a debt-to-equity ratio of 1.67, a current ratio of 3.53 and a quick ratio of 3.53. Snap Inc. has a 1 year low of $3.81 and a 1 year high of $10.41. The company has a 50 day simple moving average of $5.21 and a two-hundred day simple moving average of $6.44. The firm has a market cap of $9.49 billion, a P/E 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 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 analysts' expectations of $1.53 billion. During the same period last year, the business earned ($0.08) earnings per share. The company's quarterly revenue was up 12.2% compared to the same quarter last year. On average, equities analysts expect that Snap Inc. will post -0.07 earnings per share for the current fiscal year.
Key Stories Impacting Snap
Here are the key news stories impacting Snap this week:
- Positive Sentiment: Snap appointed Luke Wood, former President of Beats by Dr. Dre and a former Apple executive, to its board of directors. Investors may view the move as a credibility boost for Snap’s leadership and product strategy, especially given Wood’s experience at the intersection of technology and consumer brands. Luke Wood Joins Snap Inc. Board of Directors
- Neutral Sentiment: Several executive and director-level share sales were reported, but each filing said the transactions were made to cover tax withholding obligations tied to vesting equity awards. That makes the sales more routine than a clear signal of reduced confidence, though the volume may still weigh on investor sentiment. SEC filing for CFO Douglas Hott
- Neutral Sentiment: CFO Douglas Hott sold shares at about $5.60-$5.67, General Counsel Zachary M. Briers sold shares in two transactions, and CAO Rebecca Morrow also sold shares. Because these were insider transactions clustered around the same period, traders may interpret them cautiously even though the stated reason was tax-related. SEC filing for Zachary M. Briers
- Negative Sentiment: The size and timing of the insider sales could create near-term pressure on Snap Inc. (NYSE: SNAP) shares, even if they were routine. Investors often see multiple executive sales close together as a cautionary signal, especially ahead of any fresh operating updates. SEC filing for Rebecca Morrow
Institutional Trading of Snap
Several institutional investors and hedge funds have recently made changes to their positions in SNAP. Korea Investment CORP grew its stake in Snap by 573.6% in the third quarter. Korea Investment CORP now owns 967,544 shares of the company's stock valued at $7,460,000 after purchasing an additional 823,900 shares during the last quarter. Contrarius Group Holdings Ltd purchased a new stake in shares of Snap during the third quarter worth about $10,256,000. DNB Asset Management AS grew its stake in shares of Snap by 433.6% during the third quarter. DNB Asset Management AS now owns 1,042,873 shares of the company's stock worth $8,041,000 after acquiring an additional 847,447 shares during the last quarter. Quantbot Technologies LP lifted its holdings in shares of Snap by 54.4% during the third quarter. Quantbot Technologies LP now owns 749,724 shares of the company's stock worth $5,780,000 after purchasing an additional 264,156 shares during the period. Finally, Ausdal Financial Partners Inc. lifted its holdings in shares of Snap by 76.3% during the third quarter. Ausdal Financial Partners Inc. now owns 628,109 shares of the company's stock worth $4,843,000 after purchasing an additional 271,893 shares during the period. 47.52% of the stock is currently owned by institutional investors.
Analyst Ratings Changes
A number of brokerages have issued reports on SNAP. Freedom Capital lowered shares of Snap from a "strong-buy" rating to a "hold" rating in a report on Tuesday, May 12th. UBS Group set a $8.00 price target on Snap in a research report on Thursday, May 7th. Wall Street Zen downgraded Snap from a "buy" rating to a "hold" rating in a research report on Sunday. BMO Capital Markets lifted their target price on Snap from $13.00 to $15.00 and gave the stock an "outperform" rating in a research report on Wednesday, April 15th. Finally, The Goldman Sachs Group decreased their target price on Snap from $8.00 to $7.00 and set a "neutral" rating for the company in a research report on Thursday, May 7th. One investment analyst has rated the stock with a Strong Buy rating, ten have issued a Buy rating, twenty-two have assigned a Hold rating and two have issued a Sell rating to the stock. According to MarketBeat, the stock has an average rating of "Hold" and a consensus price target of $7.91.
Read Our Latest Report on SNAP
About Snap
(
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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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