Guggenheim Reiterates Neutral Rating for Snowflake (NYSE:SNOW)

Key Points

• Guggenheim reaffirmed its Neutral rating on Snowflake, while the broader analyst consensus remains “Moderate Buy” with a $386.62 average price target.
• Snowflake exceeded quarterly expectations with adjusted EPS of $0.62 versus $0.45 expected and revenue of $1.55 billion, up 35% year over year; management also raised fiscal 2027 product-revenue guidance to $6.07 billion on strong AI demand.
• The stock rose 22.2% to $373.59, but investors face risks from a 74% gross-margin outlook, persistent GAAP losses, elevated valuation and substantial insider selling.

Snowflake (NYSE:SNOW - Get Free Report)'s stock had its "neutral" rating reissued by investment analysts at Guggenheim in a report released on Thursday, Benzinga reports.

A number of other equities research analysts also recently issued reports on SNOW. Jefferies Financial Group set a $430.00 price objective on shares of Snowflake in a research report on Thursday. Oppenheimer upped their target price on Snowflake from $400.00 to $475.00 and gave the company an "outperform" rating in a report on Thursday. Bank of America increased their price target on Snowflake from $330.00 to $395.00 and gave the company a "buy" rating in a research report on Wednesday, August 19th. Mizuho set a $425.00 price objective on Snowflake in a research report on Thursday. Finally, Wedbush lifted their target price on Snowflake from $270.00 to $280.00 and gave the stock an "outperform" rating in a research note on Thursday, May 28th. Thirty-four analysts have rated the stock with a Buy rating, five have issued a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat, the company currently has an average rating of "Moderate Buy" and a consensus target price of $386.62.

Snowflake Stock Up 22.2%

SNOW stock traded up $67.75 during midday trading on Thursday, reaching $373.59. 6,481,962 shares of the company's stock traded hands, compared to its average volume of 6,747,287. The company has a quick ratio of 1.05, a current ratio of 1.05 and a debt-to-equity ratio of 1.18. The firm's fifty day moving average price is $293.26 and its 200-day moving average price is $218.27. The company has a market cap of $129.49 billion, a price-to-earnings ratio of -107.32 and a beta of 1.33. Snowflake has a 52 week low of $118.30 and a 52 week high of $384.56.

Snowflake (NYSE:SNOW - Get Free Report) last posted its earnings results on Wednesday, September 2nd. The company reported $0.62 earnings per share for the quarter, topping analysts' consensus estimates of $0.45 by $0.17. The company had revenue of $1.55 billion for the quarter, compared to analyst estimates of $1.48 billion. Snowflake had a negative net margin of 23.79% and a negative return on equity of 50.50%. The firm's revenue was up 35.1% compared to the same quarter last year. During the same quarter in the prior year, the business posted $0.35 EPS. As a group, sell-side analysts forecast that Snowflake will post -1.81 earnings per share for the current fiscal year.

Insider Activity at Snowflake

In other news, Director Michael L. Speiser sold 403 shares of Snowflake stock in a transaction dated Friday, August 7th. The shares were sold at an average price of $324.06, for a total value of $130,596.18. Following the completion of the transaction, the director owned 22,573 shares in the company, valued at $7,315,006.38. This trade represents a 1.75% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Frank Slootman sold 48,990 shares of the business's stock in a transaction that occurred on Wednesday, August 19th. The shares were sold at an average price of $320.78, for a total transaction of $15,715,012.20. Following the completion of the sale, the director directly owned 28,535 shares in the company, valued at approximately $9,153,457.30. This trade represents a 63.19% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders have sold 1,156,901 shares of company stock worth $321,725,352. Company insiders own 4.80% of the company's stock.

Institutional Investors Weigh In On Snowflake

A number of hedge funds and other institutional investors have recently bought and sold shares of SNOW. Range Advisory LLC bought a new position in shares of Snowflake in the second quarter worth $210,000. Carlson Financial Inc. purchased a new position in shares of Snowflake in the second quarter valued at $240,000. California State Teachers Retirement System raised its stake in shares of Snowflake by 25,944.6% during the 2nd quarter. California State Teachers Retirement System now owns 127,340,602 shares of the company's stock valued at $32,408,183,000 after purchasing an additional 126,851,670 shares during the period. Alan B Lancz & Associates Inc. bought a new stake in shares of Snowflake during the 2nd quarter valued at $202,000. Finally, Ameritas Advisory Services LLC lifted its holdings in Snowflake by 439.9% during the 2nd quarter. Ameritas Advisory Services LLC now owns 7,181 shares of the company's stock worth $1,828,000 after purchasing an additional 5,851 shares in the last quarter. Institutional investors own 65.10% of the company's stock.

More Snowflake News

Here are the key news stories impacting Snowflake this week:

• Positive Sentiment: Snowflake reported adjusted earnings of $0.62 per share, above the $0.45 consensus estimate, while revenue reached $1.55 billion, exceeding expectations of $1.48 billion and increasing 35% year over year. Reuters: Snowflake shares surge as AI demand powers growth and lifts outlook
• Positive Sentiment: Management raised fiscal 2027 product-revenue guidance to $6.07 billion, citing stronger-than-expected AI demand. Product revenue grew 37%, and adoption of AI offerings including the CoCo coding agent and Cortex helped reinforce the company’s AI-growth narrative. CNBC: Snowflake spikes on healthy results and AI coding momentum
• Positive Sentiment: Several analysts raised their price targets and adopted bullish ratings after the results. Targets include $424 from BTIG, $450 from DA Davidson, Canaccord and Monness Crespi & Hardt, and $488 from Citizens JMP, with ratings ranging from “buy” to “market outperform.”
• Neutral Sentiment: Snowflake’s selection by Sayari to rebuild its Commercial World Model supports the platform’s enterprise-data and AI positioning. Sayari expects the migration to reduce its data-infrastructure costs by more than 50%, although the announcement is unlikely to materially affect near-term financial results. PR Newswire: Sayari selects Snowflake
• Negative Sentiment: Management lowered fiscal 2027 gross-margin guidance to 74%, a further 100-basis-point reduction, warning that expanding AI workloads are increasing costs. This raises questions about how efficiently Snowflake can monetize rapid AI usage. Seeking Alpha: Snowflake’s hidden warning in Q2
• Negative Sentiment: At an elevated valuation, Snowflake remains exposed to disappointment if AI growth slows or margins deteriorate. Persistent GAAP losses, stock-based compensation dilution, and substantial short interest add volatility and may explain why the stock has decreased despite strong results.

About Snowflake

Snowflake Inc is a cloud-native data platform company that provides a suite of services for storing, processing and analyzing large volumes of data. Its core offering, often described as the Snowflake Data Cloud, combines data warehousing, data lake and data sharing capabilities in a single managed service delivered across major public cloud providers. The platform is designed to support analytics, data engineering, data science and application workloads with a focus on scalability, concurrency and simplified administration.

Key products and capabilities include a multi-cluster, shared-data architecture that separates compute from storage; continuous data ingestion and streaming; support for structured and semi-structured data formats; tools for data governance, security and compliance; and developer frameworks for building data applications.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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