Recent insider trends for Snap Inc. (NYSE:SNAP) have caught the attention of investors. Analysts study insider data to get a sense of sense of what key shareholders think about the outlook for a particular stock. In the case of SNAP, the data has some interesting implications for where the stock might be headed.
Institutions own 26.34% of Snap Inc. (SNAP)’s shares. The total value of these holdings, in millions, is $3,330. Among active positions in the latest quarter, 171 holders increased their positions by a total of 92.2 million shares, 88 holders decreased the positions by a total of 61.14 million shares, and 67 holders held their positions. This works out to a net increase in ownership of 31.06 million shares, and suggests that institutions are feeling bullish about the stock.
Among new and sold out positions, 66 holders initiated new positions by a total of 33.28 million shares and 46 holders exited their positions by a total of 14.92 million shares. This nets out to an increase of 18.35 million shares and is a bullish sign for SNAP.
In the last three months, insiders executed a total of 35 trades. 12 of these were buys and 23 were sells. Insider ownership decreased by a total of 903510 shares, which suggests that SNAP’s key executives are feeling less optimistic about the outlook for the stock. The data from the past twelve months tells a similar story: insiders executed 24 buys and 47 sells, and ownership decreased by a net of 51.8 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 102.78 million shares, or % of the float. This represents a decrease of -7% in the number of shares being shorted compared to the previous reading, and implies that investors felt less 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 hold, which implies that SNAP is expected to perform in line with 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 bearish. Technical indicators (also) suggest that Snap Inc. (NYSE:SNAP) is fairly valued.