UPDATED ON 5/24/2022: In a filing to the Securities and Exchange Commission, Snap, Inc. (SNAP) has stated that it now expects to report revenue and adjusted EBITDA below the low end of its Q2 2022 guidance range.
The company said, “Since we issued guidance on April 21, 2022, the macroeconomic environment has deteriorated further and faster than anticipated.” Snap had anticipated revenue growth between 20% and 25% of Q2FY20 revenue.
Recently, Snap witnessed a lot of insider trading movement. This could be because corporate insiders at Snap already knew about the company’s inability to meet its prior guidance.
According to the TipRanks Insider Trading Activity tool, the sentiments of corporate insiders on the stock seem to be Very Negative, as they have sold $7.7 million worth of Snap shares in the past three months.
The total value of Derek’s Snap holdings now stands at about $26 million.
Finally, General Counsel O’Sullivan Michael J. made an informative sell of 43,701 shares for $1.04 million.
Stock Price Movement
Shares of Snap tanked 7.4% on Wednesday. The stock further slipped 2.3% in the pre-market trading session on Thursday. SNAP stock is down 51.2% so far this year.
Hedge Funds’ Activity on TipRanks
Insiders’ move matches the sentiments of hedge fund managers on TipRanks, as all 14 hedge funds that were active in the last quarter have decreased their holdings of SNAP stock by 20.5 million shares.
Several insiders selling shares simultaneously does not reflect well on the company’s future growth prospects. To track insider activities, investors can use our TipRanks Insiders’ Hot Stocks tool.
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