Snap shares could fall below its IPO price in coming weeks, if historical trends hold true.
Shares of the Snapchat parent closed Monday 29 cents above the stock's initial public offering price of $17 a share. The move comes about a month before many insiders who hold shares of the Snapchat parent can begin selling their shares at the expiration of the first lockup period on July 31.
Looking at other social media giants, Facebook, Twitter and LinkedIn each fell an average of 24 percent in the 30 days ahead of their lockup expirations, MKM Partners managing director Rob Sanderson said in a Monday report.
In contrast, the Nasdaq composite fell an average 0.4 percent over that time, he said.
Performance of comparable IPOs into their lockup periods
Source: MKM Partners, FactSet
Losses typically accelerated in the week ahead of the lockup expiration. Facebook, Twitter and LinkedIn declined an average 14 percent, while the Nasdaq rose 1.1 percent on average, Sanderson said. Microsoft bought LinkedIn last year.
MKM did not participate in Snap's IPO and does not have any recommendation on Snap shares.