Investors Buy Large Volume of Snap Call Options (NYSE:SNAP)
by Teresa Graham · The Cerbat GemSnap Inc. (NYSE:SNAP – Get Free Report) saw unusually large options trading on Tuesday. Traders bought 151,680 call options on the company. This is an increase of 35% compared to the typical daily volume of 112,133 call options.
Snap Trading Down 0.1%
NYSE:SNAP traded down $0.01 during midday trading on Thursday, hitting $6.04. 78,650,731 shares of the company traded hands, compared to its average volume of 54,786,387. The firm has a market capitalization of $10.19 billion, a P/E ratio of -22.35 and a beta of 0.91. The firm’s fifty day moving average is $4.88 and its 200-day moving average is $6.80. Snap has a 12-month low of $3.81 and a 12-month high of $10.41. The company has a current ratio of 3.56, a quick ratio of 3.56 and a debt-to-equity ratio of 1.53.
Snap (NYSE:SNAP – Get Free Report) last posted its quarterly earnings data on Wednesday, February 4th. The company reported $0.03 earnings per share for the quarter, missing analysts’ consensus estimates of $0.15 by ($0.12). The firm had revenue of $1.72 billion for the quarter, compared to the consensus estimate of $1.70 billion. Snap had a negative net margin of 7.76% and a negative return on equity of 20.72%. The company’s revenue was up 10.2% on a year-over-year basis. During the same quarter last year, the firm earned $0.01 EPS. On average, sell-side analysts predict that Snap will post -0.3 EPS for the current year.
Insider Buying and Selling
In other news, insider Ajit Mohan sold 119,339 shares of Snap stock in a transaction that occurred on Tuesday, February 17th. The shares were sold at an average price of $4.70, for a total transaction of $560,893.30. Following the sale, the insider owned 5,158,477 shares in the company, valued at $24,244,841.90. This trade represents a 2.26% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. Also, CAO Rebecca Morrow sold 16,499 shares of the company’s stock in a transaction on Tuesday, February 17th. The stock was sold at an average price of $4.70, for a total transaction of $77,545.30. Following the transaction, the chief accounting officer owned 466,682 shares of the company’s stock, valued at approximately $2,193,405.40. This represents a 3.41% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold 2,546,926 shares of company stock worth $13,250,655 in the last quarter. 22.68% of the stock is owned by insiders.
Institutional Inflows and Outflows
A number of hedge funds have recently modified their holdings of the business. Allworth Financial LP boosted its holdings in Snap by 92.3% during the 3rd quarter. Allworth Financial LP now owns 3,293 shares of the company’s stock valued at $25,000 after acquiring an additional 1,581 shares during the period. Oak Harvest Investment Services purchased a new stake in Snap in the fourth quarter worth $26,000. Arax Advisory Partners lifted its position in shares of Snap by 220.0% during the fourth quarter. Arax Advisory Partners now owns 3,309 shares of the company’s stock worth $27,000 after purchasing an additional 2,275 shares during the last quarter. V Square Quantitative Management LLC purchased a new stake in shares of Snap during the fourth quarter valued at $29,000. Finally, EverSource Wealth Advisors LLC boosted its position in Snap by 561.4% in the 4th quarter. EverSource Wealth Advisors LLC now owns 3,618 shares of the company’s stock valued at $29,000 after buying an additional 3,071 shares during the period. Institutional investors own 47.52% of the company’s stock.
Key Snap News
Here are the key news stories impacting Snap this week:
- Positive Sentiment: Large restructuring announced — Snap will cut roughly 1,000 jobs (≈16% of workforce), close >300 open roles and target about $500M in cost savings; market reaction has been positive as investors view this as a path to profitability. Snap to Cut 16% of Its Workforce
- Positive Sentiment: Analyst bullishness: BMO’s Brian Pitz raised his price target to $15 (from $13) and kept an Outperform, signaling that some analysts see the restructuring as a meaningful catalyst. BMO Raises Snap’s Target
- Positive Sentiment: Buy-side / sector coverage picked up — Roth Capital and other outlets framed Snap as a tactical AI/AR play, helping momentum after the restructuring news. Roth Capital Positive Trade
- Positive Sentiment: Shares already showed a strong rebound in the session after the announcement, with above-average volume — suggesting traders are rewarding the cost-cutting move. Zacks: Snap Surges
- Neutral Sentiment: Mixed analyst views on valuation: Guggenheim and Rosenblatt reaffirmed neutral ratings with modest price targets (~$6.50 and $6.40), implying limited near-term upside from current levels. Rosenblatt Coverage
- Negative Sentiment: Legal risk — Pomerantz LLP opened an investor probe into Snap, which could lead to litigation and distract management. Pomerantz Investigation
- Negative Sentiment: Reputational hit — Coverage highlights CEO Evan Spiegel partying at Coachella days before announcing mass layoffs, which could pressure sentiment and employee morale. CEO Backlash
- Negative Sentiment: Criticism and skepticism — Opinion pieces question whether the AI rationale masks other problems and label Snap’s business model weak, which can keep a ceiling on the stock despite cost cuts. Critical Take on Snap
Analyst Upgrades and Downgrades
SNAP has been the subject of several research reports. BNP Paribas Exane assumed coverage on shares of Snap in a report on Wednesday, January 14th. They set a “strong sell” rating for the company. Cantor Fitzgerald reduced their target price on Snap from $9.00 to $7.00 and set a “neutral” rating on the stock in a report on Thursday, February 5th. The Goldman Sachs Group decreased their target price on Snap from $9.50 to $8.50 and set a “neutral” rating on the stock in a research report on Tuesday, January 13th. Roth Mkm set a $7.00 price target on Snap in a report on Thursday, February 5th. Finally, Evercore reaffirmed a “mixed” rating on shares of Snap in a research note on Thursday, February 5th. One equities research analyst has rated the stock with a Strong Buy rating, five have given a Buy rating, twenty have assigned a Hold rating and three have assigned a Sell rating to the stock. According to MarketBeat, the company presently has an average rating of “Hold” and a consensus target price of $8.17.
Read Our Latest Research Report on Snap
About Snap
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.