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Evan Spiegel, the Chief Executive Officer of Snap Inc . (NYSE:SNAP), recently sold a significant portion of his holdings in the company. According to a recent SEC filing, Spiegel sold 150,000 shares of Snap’s Class A common stock on February 6, 2025. The shares were sold at an average price of $10.4781, generating a total of approximately $1.57 million. The sale comes as Snap’s stock trades at $10.71, having declined about 8% over the past week. According to InvestingPro analysis, the stock appears undervalued based on its Fair Value model.
The transaction was carried out under a pre-arranged trading plan, known as a Rule 10b5-1 plan, which Spiegel adopted on March 9, 2023. This plan allows corporate insiders to set up a predetermined schedule for selling stocks, helping them avoid potential accusations of insider trading. InvestingPro subscribers can access 8 additional exclusive insights about Snap’s financial health and market position through detailed Pro Research Reports, which provide comprehensive analysis of 1,400+ top stocks.
Following this transaction, Spiegel retains 3,587,696 shares of Snap’s Class A common stock directly, in addition to shares held indirectly through a trust. The trust, over which Spiegel acts as trustee, executed the sale, but Spiegel does not hold any financial interest in it. The beneficiaries of the trust are not immediate family members of Spiegel. While the company currently operates with moderate debt levels, InvestingPro data shows its liquid assets exceed short-term obligations, maintaining a healthy current ratio of 3.95.
In other recent news, Snap Inc. has been the subject of various financial evaluations and strategic moves. Fitch Ratings assigned a ’BB’ Long-Term Issuer Default Rating to the company, indicating a stable outlook. The company’s growth trajectory and financial strategy are expected to result in significant margin expansion and free cash flow generation. S&P Global Ratings assigned a ’B+’ issuer credit rating to Snap Inc., in light of a proposed $700 million note issuance, which is intended for the prepayment of existing convertible senior notes and other corporate purposes.
Moody’s (NYSE:MCO) Ratings also gave Snap a B1 corporate family rating and a positive outlook, reflecting the company’s strong market position and promising growth prospects. The rating agency expects Snap to maintain very good liquidity over the next 12 to 18 months, supported by more than $3 billion in cash and an undrawn $1,050 million revolving credit facility.
All of these recent developments highlight the company’s ongoing efforts to enhance its financial position and ensure sustained growth in the highly competitive social media landscape.
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