Snap (NYSE:SNAP) Insider Ajit Mohan Sells 6,923 Shares of Stock

Snap Inc. (NYSE:SNAP) insider Ajit Mohan sold 6,923 shares of the company’s stock in a transaction dated Tuesday, June 16th. The stock was sold at an average price of $5.58, for a total transaction of $38,630.34. Following the sale, the insider directly owned 5,050,968 shares in the company, valued at $28,184,401.44. This represents a 0.14% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards.

Ajit Mohan also recently made the following trade(s):

• On Monday, May 18th, Ajit Mohan sold 44,785 shares of Snap stock. The shares were sold at an average price of $5.60, for a total transaction of $250,796.00.
• On Thursday, April 16th, Ajit Mohan sold 28,058 shares of Snap stock. The stock was sold at an average price of $6.02, for a total value of $168,909.16.

Snap Stock Down 1.9%

NYSE SNAP opened at $4.65 on Friday. The firm has a market cap of $7.85 billion, a PE ratio of -19.38 and a beta of 1.03. Snap Inc. has a one year low of $3.81 and a one year high of $10.41. The stock’s 50 day simple moving average is $5.64 and its 200 day simple moving average is $6.08. 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 (NYSE:SNAP) last released its quarterly earnings results on Wednesday, May 6th. The company reported ($0.05) earnings per share 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 business had revenue of $1.53 billion for the quarter, compared to analyst estimates of $1.53 billion. During the same period in the prior year, the business earned ($0.08) earnings per share. The company’s revenue for the quarter was up 12.2% on a year-over-year basis. As a group, sell-side analysts forecast that Snap Inc. will post -0.06 earnings per share for the current fiscal year.

Key Snap News

Here are the key news stories impacting Snap this week:

• Positive Sentiment: Snap is continuing to expand its augmented reality ecosystem, including the launch of SPECs glasses and new developer opportunities that could support longer-term platform engagement.
• Positive Sentiment: The company also bought Illumix to strengthen its AR capabilities, reinforcing management’s commitment to AR as a growth area.
• Neutral Sentiment: Trading activity included elevated call option interest, suggesting some investors are still positioning for a rebound despite the recent selloff.
• Negative Sentiment: Insider Ajit Mohan sold 6,923 shares, though the filing said the sale was made to cover tax withholding obligations tied to equity vesting, which makes it less concerning than a discretionary sale.

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in SNAP. Allworth Financial LP grew its position in shares of Snap by 92.3% during 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. Oak Harvest Investment Services acquired a new position in Snap in the fourth quarter valued at approximately $26,000. Arax Advisory Partners lifted its holdings in 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 buying an additional 2,275 shares during the period. V Square Quantitative Management LLC bought a new position in Snap in the fourth quarter valued at approximately $29,000. Finally, EverSource Wealth Advisors LLC grew its holdings in Snap by 561.4% during the 4th quarter. EverSource Wealth Advisors LLC now owns 3,618 shares of the company’s stock worth $29,000 after acquiring an additional 3,071 shares during the period. 47.52% of the stock is currently owned by institutional investors and hedge funds.

Analyst Ratings Changes

A number of equities research analysts have commented on SNAP shares. HSBC lowered shares of Snap from a “hold” rating to a “hold” rating in a report on Monday, April 27th. Guggenheim reiterated a “neutral” rating and set a $6.50 target price on shares of Snap in a research report on Thursday, April 16th. Loop Capital set a $8.00 price target on shares of Snap in a research note on Monday, February 23rd. Benchmark reissued a “hold” rating on shares of Snap in a report on Wednesday. Finally, Wall Street Zen cut shares of Snap from a “buy” rating to a “hold” rating in a research report on Sunday, May 17th. One investment analyst has rated the stock with a Strong Buy rating, nine have given a Buy rating, twenty-three have given a Hold rating and two have assigned a Sell rating to the company’s stock. According to MarketBeat, the company has a consensus rating of “Hold” and a consensus target price of $7.79.

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.