Shares of Snap Inc. (NYSE:SNAP) are trading higher on Monday in heavy trading volume. The parent company of Snapchat continued its premarket rally after the opening bell and rose over 10% before paring some gains.
According to chatter on the popular Reddit group “WallStreetBets,” many retail traders are positioned bullishly on SNAP via options.
SNAP was also the no. 1 mentioned ticker on the Reddit group in the last 12 hours, and some users have speculated that the company might make for an attractive acquisition target due to its cheap share price.
Over 80.7M shares have changed hands by 11:00 am ET, which is 1.3x its 3-month daily moving average volume of 63.4M.
Seeking Alpha analysts on average rate the stock a “buy,” while SA Quant and Wall Street analysts rate the stock a “hold.” Short interest on SNAP shares is 10.02%.
On Friday, the stock snapped a six-day winning streak during which it had gained nearly 16%. Last week, the company also disclosed via SEC filings insider sale transactions by four of its top executives, including from CFO Derek Andersen.
SNAP is down 16.1% so far this year while the S&P 500 is up 13.3%.