This Insider Has Just Sold Shares In Snap

We wouldn't blame Snap Inc. (NYSE:SNAP) shareholders if they were a little worried about the fact that Eric Young, the Senior Vice President of Engineering recently netted about US$1.0m selling shares at an average price of US$9.11. That sale reduced their total holding by 13% which is hardly insignificant, but far from the worst we've seen.

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The Last 12 Months Of Insider Transactions At Snap

In fact, the recent sale by Senior Vice President of Engineering Eric Young was not their only sale of Snap shares this year. They previously made an even bigger sale of -US$1.8m worth of shares at a price of US$15.91 per share. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The silver lining is that this sell-down took place above the latest price (US$9.25). So it may not tell us anything about how insiders feel about the current share price.

Snap insiders didn't buy any shares over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

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Does Snap Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It's great to see that Snap insiders own 22% of the company, worth about US$3.4b. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Do The Snap Insider Transactions Indicate?

Insiders sold Snap shares recently, but they didn't buy any. Looking to the last twelve months, our data doesn't show any insider buying. It is good to see high insider ownership, but the insider selling leaves us cautious. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. In terms of investment risks, we've identified 3 warning signs with Snap and understanding these should be part of your investment process.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.