Snap Sees Unusually High Options Volume (NYSE:SNAP)

Snap Inc. (NYSE:SNAP) was the recipient of some unusual options trading on Monday. Stock investors purchased 119,645 call options on the stock. This represents an increase of approximately 17% compared to the typical daily volume of 102,370 call options.

Snap Price Performance

Snap stock traded up $0.31 during midday trading on Monday, reaching $5.00. The company’s stock had a trading volume of 28,506,530 shares, compared to its average volume of 48,092,324. The firm has a market capitalization of $8.44 billion, a PE ratio of -20.85 and a beta of 1.05. Snap has a fifty-two week low of $3.81 and a fifty-two week high of $9.55. The stock’s 50 day simple moving average is $4.97 and its 200 day simple moving average is $5.36. The company has a debt-to-equity ratio of 1.67, a quick ratio of 3.53 and a current ratio of 3.53.

Snap (NYSE:SNAP) last posted 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). The company had revenue of $1.53 billion for the quarter, compared to analyst estimates of $1.53 billion. Snap had a negative return on equity of 18.92% and a negative net margin of 6.72%.The business’s revenue for the quarter was up 12.2% compared to the same quarter last year. During the same period last year, the company earned ($0.08) earnings per share. On average, equities research analysts forecast that Snap will post -0.07 earnings per share for the current year.

Insider Activity

In other news, CTO Robert C. Murphy sold 343,945 shares of the business’s stock in a transaction that occurred on Friday, May 29th. The stock was sold at an average price of $5.88, for a total value of $2,022,396.60. Following the transaction, the chief technology officer owned 4,963,581 shares of the company’s stock, valued at approximately $29,185,856.28. The trade was a 6.48% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, CFO Douglas Hott sold 114,702 shares of the company’s stock in a transaction that occurred on Tuesday, May 19th. The stock was 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 trade represents a 4.46% decrease in their position. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold 2,868,059 shares of company stock worth $15,855,631 over the last quarter. 22.68% of the stock is owned by insiders.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Saba Capital Management L.P. increased its stake in Snap by 232.5% in the 1st quarter. Saba Capital Management L.P. now owns 4,727,808 shares of the company’s stock valued at $21,748,000 after purchasing an additional 3,306,024 shares in the last quarter. Empyrean Capital Partners LP acquired a new position in Snap during the first quarter worth $25,300,000. Leonteq Securities AG purchased a new stake in Snap during the fourth quarter worth $1,620,000. Eurizon Capital SGR S.p.A. purchased a new stake in Snap during the fourth quarter worth $1,629,000. Finally, Marsico Capital Management LLC acquired a new stake in Snap in the fourth quarter valued at $5,620,000. 47.52% of the stock is currently owned by institutional investors and hedge funds.

Analyst Upgrades and Downgrades

A number of brokerages have commented on SNAP. JPMorgan Chase & Co. cut their price objective on shares of Snap from $7.00 to $6.00 and set an “underweight” rating for the company in a research report on Thursday, May 7th. Sanford C. Bernstein reiterated a “market perform” rating and set a $5.00 price target on shares of Snap in a research note on Tuesday, July 21st. Tigress Financial assumed coverage on shares of Snap in a report on Monday, April 27th. They set a “buy” rating for the company. Truist Financial set a $8.00 price objective on shares of Snap in a research report on Wednesday, June 17th. Finally, Citigroup reaffirmed a “market perform” rating on shares of Snap in a report on Wednesday, June 17th. One equities research analyst has rated the stock with a Strong Buy rating, eight have given a Buy rating, twenty-five have given a Hold rating and two have given a Sell rating to the stock. Based on data from MarketBeat, the stock has an average rating of “Hold” and an average price target of $7.23.

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.