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 27.33% of Snap Inc. (SNAP)’s shares. The total value of these holdings, in millions, is $3,984. Among active positions in the latest quarter, 163 holders increased their positions by a total of 85.44 million shares, 114 holders decreased the positions by a total of 70.21 million shares, and 85 holders held their positions. This works out to a net increase in ownership of 15.23 million shares, and suggests that institutions are feeling bullish about the stock.
Among new and sold out positions, 81 holders initiated new positions by a total of 50.11 million shares and 53 holders exited their positions by a total of 41.13 million shares. This nets out to an increase of 8.98 million shares and is a bullish sign for SNAP.
In the last three months, insiders executed a total of 30 trades. 6 of these were buys and 24 were sells. Insider ownership decreased by a total of 2.51 million 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 29 buys and 60 sells, and ownership decreased by a net of 385463 shares.
Short interest is another tool that analysts use to gauge investor sentiment. It represents the number of a stock’s shares that are being shorted by investors. Snap Inc. (NYSE:SNAP)’s short interest is 85.03 million shares, or 13.72% of the float. This represents a decrease of -6% 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.
In light of the insider ownership and trading data it makes sense to consider technicals to see if they come to a similar 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 Weak sell, which implies that SNAP is expected to underperform 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 overvalued.