Some Snap Inc. (NYSE:SNAP) shareholders may be a little concerned to see that the Senior Vice President of Engineering, Jerry Hunter, recently sold a substantial US$2.5m worth of stock at a price of US$39.86 per share. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 3.4%.
Snap Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider sale was by the Co-Founder, Evan Spiegel, for US$19m worth of shares, at about US$67.81 per share. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. It's of some comfort that this sale was conducted at a price well above the current share price, which is US$36.98. So it may not tell us anything about how insiders feel about the current share price.
Insiders in Snap didn't buy any shares in the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
I will like Snap better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
Insider Ownership of Snap
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. Snap insiders own 23% of the company, currently worth about US$14b based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
What Might The Insider Transactions At Snap Tell Us?
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. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Snap. At Simply Wall St, we found 3 warning signs for Snap that deserve your attention before buying any shares.
Of course Snap may not be the best stock to buy. So you may wish to see this free collection of high quality 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, but not derivative transactions.
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.