Recent insider trends for Snap Inc. (NYSE:SNAP) have caught the attention of investors. Analysts monitor insider data to understand the sentiment of a company’s largest and most important shareholders. SNAP’s insider trading patterns have some implications for where the stock might be headed.
Institutions own 24.22% of Snap Inc. (SNAP)’s shares. The total value of these holdings, in millions, is $3,140. Among active positions in the latest quarter, 176 holders increased their positions by a total of 49.24 million shares, 87 holders decreased the positions by a total of 52.31 million shares, and 47 holders held their positions. This works out to a net decrease in ownership of 3.07 million shares, and suggests that institutions are feeling bearish about the stock.
Among new and sold out positions, 97 holders initiated new positions by a total of 12.65 million shares and 49 holders exited their positions by a total of 21.36 million shares. This nets out to a decrease of 8.71 million shares and is another bearish sign for SNAP.
In the last three months, insiders executed a total of 27 trades. 11 of these were buys and 16 were sells. Insider ownership increased by a total of 793235 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 12 buys and 24 sells, and ownership decreased by a net of 50.9 million shares.
Short interest, or the number of a stock’s tradable shares currently being shorted, is another metric investors use to get a pulse on sentiment. Snap Inc. (NYSE:SNAP)’s short interest is 108.33 million shares, or % of the float. This represents an increase of 4% 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.
Ownership trends and trading patterns can be useful tools for predicting a stock’s performance, but it’s also important to consider the technicals in order to form a more comprehensive view. A composite of 13 technical indicators that includes measures such as moving averages and momentum oscillators suggests that SNAP is a Strong buy, which implies that SNAP is expected to outperform the market based on prior trading patterns.
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.