Snap closes below $17 IPO price amid fears insiders to dump shares

Big 5

Shares of Snap on Monday fell below their IPO price for the first time, just ahead of a crucial period for the social media stock.

Snap dipped to a low of $16.95 before closing at $16.99, just below the $17 price of the March offering.

The shares ended their first day of trading, March 2, up 44 percent to $24.48. The stock hit a high of $29.44 on March 3.

Snap, which makes the ephemeral messaging app Snapchat, is about to see the end of its lockup period. When that hits at the end of the month, insiders can begin selling their shares.

Facebook, Twitter, and LinkedIn fell an average of 24 percent in the 30 days ahead of their lockup expirations, according to MKM Partners. Snap shares have fallen nearly 19 percent in the past three months, and about 6 percent over the past month. Source: CNBC

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