Robert C. Murphy, Chief Technology Officer of Snap Inc . (NYSE:SNAP), has sold 1,000,000 shares of Class A Common Stock. The shares were sold at an average price of $12.5048, totaling approximately $12.5 million. This transaction was carried out under a pre-established Rule 10b5-1 trading plan. Following this sale, Murphy retains direct ownership of 57,210,989 shares.
Additionally, Murphy made two charitable gifts, transferring a total of 347,833 shares at no cost. These gifts reduced his direct ownership to 56,863,156 shares. Murphy also holds shares indirectly, including 5,307,526 shares in an irrevocable trust and 5,000,000 shares in entities where he retains investment power.
In other recent news, Snap Inc. showcased strong Q3 results, with a 15% uptick in year-over-year revenue, hitting $1.37 billion. The company also reported a surge in daily active users, now totaling 443 million. This growth is largely attributed to its direct response advertising business and the Snapchat+ subscription service, which saw active advertisers more than double from the previous year. The launch of new ad products and the fifth generation of Spectacles, Snap's augmented reality glasses, were also highlighted.
Adjusted EBITDA climbed to $132 million, and free cash flow reached $72 million. Despite a 1% decline in brand-oriented advertising revenue, direct response advertising revenue grew by 16%. Looking ahead, Snap Inc. projects Q4 revenue to be between $1.51 billion and $1.56 billion. The company also authorized a new $500 million share repurchase program. These recent developments indicate Snap Inc.'s commitment to driving growth and enhancing financial performance.
InvestingPro Insights
Recent data from InvestingPro sheds light on Snap Inc.'s financial position and market performance, providing context to Robert C. Murphy's recent stock transactions. Despite the CTO's significant share sale, Snap's stock has shown strong momentum, with InvestingPro data indicating a 39.15% price return over the last three months and an 11.29% return in the past week alone.
This positive trend aligns with an InvestingPro Tip noting that 12 analysts have revised their earnings upwards for the upcoming period, suggesting growing optimism about Snap's future performance. The company's market capitalization stands at $20.29 billion, reflecting its substantial presence in the social media landscape.
However, investors should note that Snap is currently trading at a high Price to Book multiple of 9.51, which may indicate the stock is relatively expensive compared to its book value. This valuation metric is particularly relevant given another InvestingPro Tip highlighting that Snap has not been profitable over the last twelve months, with a negative P/E ratio of -23.81.
For those seeking a more comprehensive analysis, InvestingPro offers 6 additional tips that could provide valuable insights into Snap's financial health and market position. These additional tips, along with real-time metrics, can help investors make more informed decisions about Snap's stock in light of recent insider transactions.
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