Stock Traders Purchase High Volume of Call Options on Snap (NYSE:SNAP)

Snap Inc. (NYSE:SNAP) saw some unusual options trading on Tuesday. Stock investors acquired 155,528 call options on the stock. This is an increase of approximately 32% compared to the average daily volume of 117,731 call options.

Snap Price Performance

Snap stock opened at $4.71 on Thursday. Snap has a 52 week low of $3.81 and a 52 week high of $10.41. The business has a 50-day simple moving average of $5.64 and a 200 day simple moving average of $6.10. The company has a quick ratio of 3.53, a current ratio of 3.53 and a debt-to-equity ratio of 1.67. The stock has a market cap of $7.96 billion, a price-to-earnings ratio of -19.63 and a beta of 1.03.

Snap (NYSE:SNAP) last issued its quarterly earnings results on Wednesday, May 6th. The company reported ($0.05) earnings per share (EPS) 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 firm had revenue of $1.53 billion for the quarter, compared to the consensus estimate of $1.53 billion. During the same period last year, the firm earned ($0.08) EPS. The company’s revenue for the quarter was up 12.2% on a year-over-year basis. On average, research analysts forecast that Snap will post -0.06 earnings per share for the current fiscal year.

Insider Buying and Selling

In related news, CAO Rebecca Morrow sold 16,729 shares of the firm’s stock in a transaction that occurred on Monday, May 18th. The stock was sold at an average price of $5.60, for a total transaction of $93,682.40. Following the completion of the sale, the chief accounting officer owned 512,811 shares of the company’s stock, valued at $2,871,741.60. This trade represents a 3.16% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider Ajit Mohan sold 44,785 shares of the firm’s stock in a transaction that occurred on Monday, May 18th. The stock was sold at an average price of $5.60, for a total value of $250,796.00. Following the sale, the insider directly owned 5,057,891 shares of the company’s stock, valued at $28,324,189.60. This represents a 0.88% decrease in their position. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last quarter, insiders have sold 2,900,631 shares of company stock valued at $16,054,989. Corporate insiders own 22.68% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently made changes to their positions in the company. Korea Investment CORP lifted its holdings in shares of Snap by 573.6% during the 3rd quarter. Korea Investment CORP now owns 967,544 shares of the company’s stock valued at $7,460,000 after buying an additional 823,900 shares during the period. Contrarius Group Holdings Ltd bought a new position in shares of Snap during the 3rd quarter valued at $10,256,000. DNB Asset Management AS increased its stake in shares of Snap by 433.6% in the 3rd quarter. DNB Asset Management AS now owns 1,042,873 shares of the company’s stock worth $8,041,000 after purchasing an additional 847,447 shares in the last quarter. Quantbot Technologies LP increased its stake in shares of Snap by 54.4% in the 3rd 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 in the last quarter. Finally, Ausdal Financial Partners Inc. increased its stake in shares of Snap by 76.3% in the 3rd 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 in the last quarter. Hedge funds and other institutional investors own 47.52% of the company’s stock.

Wall Street Analyst Weigh In

SNAP has been the topic of several recent research reports. BNP Paribas Exane lowered Snap to a “neutral” rating in a report on Monday, April 27th. Royal Bank Of Canada cut their price target on Snap from $10.00 to $8.00 and set a “sector perform” rating on the stock in a report on Thursday, May 7th. Tigress Financial initiated coverage on Snap in a report on Monday, April 27th. They issued a “buy” rating on the stock. Wall Street Zen lowered Snap from a “buy” rating to a “hold” rating in a report on Sunday, May 17th. Finally, The Goldman Sachs Group cut their price target on Snap from $8.00 to $7.00 and set a “neutral” rating on the stock in a report on Thursday, May 7th. One equities research analyst has rated the stock with a Strong Buy rating, nine have assigned a Buy rating, twenty-three have issued a Hold rating and two have issued a Sell rating to the company’s stock. According to data from MarketBeat.com, the company currently has a consensus rating of “Hold” and a consensus target price of $7.79.

Key Stories Impacting Snap

Here are the key news stories impacting Snap this week:

• Negative Sentiment: Snap’s debut of Specs sparked selling as investors balked at the $2,195 price and questioned whether consumers will pay up for the company’s first standalone AR glasses. After unveiling ridiculously expensive AR glasses, Snap’s stock takes a dive
• Neutral Sentiment: Management is framing Specs as a long-term bet on life beyond smartphones, which could support the stock over time if the product gains traction, but near-term investor reaction has been cautious. Snap CEO Spiegel defends Specs as long-term bet, pushes back against activist pressure
• Positive Sentiment: Snap has been making other strategic moves in AR and finance, including an Illumix acquisition and a debt upgrade, which may improve the company’s longer-term risk profile. Snap’s AR Push And Debt Upgrade Reframe Valuation And Risk Profile
• Neutral Sentiment: Separately, Snap has introduced new safeguards for younger users, a policy update that may help with platform trust but is unlikely to be a major immediate stock catalyst. SNAP Introduces New Safeguards for Younger Users

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.