Finance

Analyzing the Insider Data for Snap Inc. (SNAP)

Recent insider trends for Snap Inc. (NYSE:SNAP) have caught the attention of investors. Insider data is useful because it can reveal what a company’s executives and largest shareholders feel about a stock. In this case, the data has some interesting things to say about how SNAP might perform in the future.

Institutions own 26.34% of Snap Inc. (SNAP)’s shares. The total value of these holdings, in millions, is $3,397. Among active positions in the latest quarter, 174 holders increased their positions by a total of 92.22 million shares, 88 holders decreased the positions by a total of 61.2 million shares, and 65 holders held their positions. This works out to a net increase in ownership of 31.03 million shares, and suggests that institutions are feeling bullish about the stock.

Among new and sold out positions, 69 holders initiated new positions by a total of 33.3 million shares and 46 holders exited their positions by a total of 14.97 million shares. This nets out to an increase of 18.32 million shares and is a bullish sign for SNAP.

In the last three months, insiders executed a total of 26 trades. 11 of these were buys and 15 were sells. Insider ownership increased by a total of 679505 shares, which suggests that SNAP’s key executives are feeling more optimistic about the outlook for the stock. The data from the past twelve months tells a different story: insiders executed 20 buys and 35 sells, and ownership decreased by a net of 51.54 million shares.



The analysis of insider buying and selling trends can be extended to the aggregate level. Short interest, which represents the number of a stock’s shares currently being shorted, captures what the market as a whole feels about a stock. Snap Inc. (NYSE:SNAP)’s short interest is 122.67 million shares, or % of the float. This represents an increase of 7% in the number of shares being shorted compared to the previous reading, and implies that investors felt more pessimistic about the stock during the past two weeks.

Given what the insider ownership patterns are saying, it makes sense to consider the technicals to see if these pieces of information reach the same conclusion about the outlook for SNAP. A composite of 13 technical indicators that includes measures such as moving averages and momentum oscillators suggests that SNAP is a buy, which implies that SNAP is expected to outperform the market based on prior trading patterns.

Conclusion




Institutional ownership trends suggest that the stock is cheap and the insider trading data indicates that insiders are bullish. Technical indicators (also) suggest that Snap Inc. (NYSE:SNAP) is undervalued.

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