Piper Jaffray Companies Reaffirms "Hold" Rating for Snap Inc. (NYSE:SNAP)

Marco Green
October 24, 2017

Earlier this month, Snap CEO Evan Spiegel said the company had sold "over 150,000 units", which sounds pretty bad in the context of having hundreds of thousands sitting around waiting to be sold; although The Information says that figure includes unassembled units with parts that could potentially be used in other products. On Friday, the company reportedly laid off another 18 employees on its recruiting team as it prepares to slow down its hiring. (NYSE:SNAP) in a research note released on Wednesday, October 11th, Marketbeat Ratings reports. Snap has around 2,600 employees, according to filings with the Securities and Exchange Commission. Following the completion of the sale, the insider now directly owns 9,946,464 shares of the company's stock, valued at $149,196,960.

Snap's Spectacles might not have been such a great bet after all, judging by the hundreds of thousands of unsold units. The fund owned 251,800 shares of the company's stock after buying an additional 250,200 shares during the quarter. 19,578,644 shares of the stock traded hands. Following the completion of the sale, the vice president now directly owns 2,204,168 shares of the company's stock, valued at $27,552,100. Also, VP Timothy Sehn sold 400,000 shares of the stock in a transaction that occurred on Monday, August 14th. State Treasurer State of MI purchased a new position in Snap during the third quarter valued at $15,714,000. WFG Advisors LP increased its position in shares of Snap by 52.4% in the second quarter. The shares were sold at an average price of $15.00, for a total value of $5,250,000.00. LLC grew its position in Snap by 25.2% during the 2nd quarter.

Now, Snap has sold over 150,000 units and made nearly $20 million out of Spectacles, but they seem to have grossly overestimated the demand for what once was an exclusive tech item. In the last 90 days, insiders have sold 2,133,598 shares of company stock valued at $29,704,362.

Snap Inc, formerly Snapchat, Inc, is a camera company. The Company offers three ways for people to make Snaps: the Snapchat application, Publishers Tools that help its partners to create Publisher Stories, and Spectacles, its sunglasses that make Snaps.

Snap has been relatively quiet on hardware efforts thus far, though CEO Evan Spiegel did compare early performance of the Spectacles to the iPod.

What comes of Snap's hardware efforts remains to be seen, but things certainly don't look good right now.

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