Snap (NYSE:SNAP) CFO Douglas Hott Sells 114,702 Shares

Snap Inc. (NYSE:SNAP) CFO Douglas Hott sold 114,702 shares of the stock in a transaction dated Tuesday, May 19th. The shares were sold at an average price of $5.67, for a total value of $650,360.34. Following the sale, the chief financial officer owned 2,456,447 shares of the company’s stock, valued at $13,928,054.49. This represents a 4.46% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards.

Douglas Hott also recently made the following trade(s):

• On Monday, May 18th, Douglas Hott sold 124,209 shares of Snap stock. The shares were sold at an average price of $5.60, for a total value of $695,570.40.

Snap Trading Up 1.2%

Shares of SNAP stock opened at $5.62 on Thursday. The stock has a market capitalization of $9.49 billion, a PE ratio of -23.40 and a beta of 1.05. Snap Inc. has a 1-year low of $3.81 and a 1-year high of $10.41. The business has a 50-day moving average of $5.21 and a 200 day moving average of $6.44. 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 data on Wednesday, May 6th. The company reported ($0.05) earnings per share for the quarter, missing the consensus estimate of $0.09 by ($0.14). Snap had a negative return on equity of 18.92% and a negative net margin of 6.72%.The business had revenue of $1.53 billion during the quarter, compared to analysts’ expectations of $1.53 billion. During the same quarter last year, the business posted ($0.08) EPS. The company’s quarterly revenue was up 12.2% compared to the same quarter last year. As a group, sell-side analysts anticipate that Snap Inc. will post -0.07 earnings per share for the current year.

Hedge Funds Weigh In On Snap

A number of institutional investors and hedge funds have recently modified their holdings of SNAP. Alyeska Investment Group L.P. purchased a new position in Snap during the third quarter valued at $176,697,000. AQR Capital Management LLC lifted its position in shares of Snap by 874.3% in the fourth quarter. AQR Capital Management LLC now owns 10,066,852 shares of the company’s stock valued at $81,239,000 after acquiring an additional 9,033,644 shares in the last quarter. Empyrean Capital Partners LP purchased a new position in shares of Snap in the first quarter valued at about $25,300,000. Junto Capital Management LP purchased a new position in shares of Snap in the third quarter valued at about $29,071,000. Finally, Voloridge Investment Management LLC lifted its position in shares of Snap by 53.3% in the third quarter. Voloridge Investment Management LLC now owns 10,300,911 shares of the company’s stock valued at $79,420,000 after acquiring an additional 3,582,223 shares in the last quarter. 47.52% of the stock is currently owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

A number of research analysts have recently commented on SNAP shares. Mizuho lowered their target price on Snap from $9.00 to $7.00 and set a “neutral” rating for the company in a research note on Thursday, February 5th. Bank of America raised Snap from a “neutral” rating to a “buy” rating and set a $10.00 price objective for the company in a research report on Thursday, February 5th. Roth Mkm set a $7.00 price objective on Snap in a research report on Thursday, February 5th. Freedom Capital lowered Snap from a “strong-buy” rating to a “hold” rating in a research report on Tuesday, May 12th. Finally, Stifel Nicolaus raised their price objective on Snap from $4.50 to $5.25 and gave the company a “hold” rating in a research report on Tuesday, April 21st. One equities 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 assigned a Sell rating to the stock. According to MarketBeat, Snap currently has an average rating of “Hold” and a consensus price target of $7.91.

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

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.