Snowflake (NYSE:SNOW) Rating Lowered to Moderate Buy at Phillip Securities

Key Points

• Phillip Securities downgraded Snowflake from “strong buy” to “moderate buy,” although the broader analyst consensus remains “moderate buy,” with 35 buy ratings and a consensus price target of $414.24.
• Snowflake shares opened at $359.85, near their 52-week high, after the company beat quarterly earnings and revenue estimates; revenue increased 35.1% year over year, but the company remained GAAP-unprofitable.
• Insiders sold approximately $396.2 million worth of shares over the past 90 days, while institutional investors own 65.1% of the company’s stock.

Snowflake (NYSE:SNOW - Get Free Report) was downgraded by investment analysts at Phillip Securities from a "strong-buy" rating to a "moderate buy" rating in a research note issued to investors on Monday, Zacks reports.

A number of other equities research analysts have also recently commented on SNOW. Deutsche Bank Aktiengesellschaft set a $400.00 price target on shares of Snowflake in a report on Thursday, September 3rd. Needham & Company LLC restated a "buy" rating and issued a $450.00 price objective on shares of Snowflake in a report on Monday. Royal Bank Of Canada boosted their price objective on shares of Snowflake from $372.00 to $440.00 and gave the stock an "outperform" rating in a report on Thursday, September 3rd. DA Davidson upped their price objective on Snowflake from $300.00 to $450.00 and gave the company a "buy" rating in a research report on Thursday, September 3rd. Finally, Citizens Jmp increased their target price on Snowflake from $408.00 to $488.00 and gave the company a "market outperform" rating in a research note on Thursday, September 3rd. Thirty-five research analysts have rated the stock with a Buy rating, five have given a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat, Snowflake presently has an average rating of "Moderate Buy" and a consensus price target of $414.24.

Snowflake Stock Performance

Shares of Snowflake stock opened at $359.85 on Monday. Snowflake has a 1 year low of $118.30 and a 1 year high of $384.56. The firm's 50-day moving average is $332.25 and its 200 day moving average is $250.65. The stock has a market cap of $126.95 billion, a price-to-earnings ratio of -113.16 and a beta of 1.35. The company has a debt-to-equity ratio of 1.06, a current ratio of 0.94 and a quick ratio of 0.94.

Snowflake (NYSE:SNOW - Get Free Report) last released its quarterly earnings data on Wednesday, September 2nd. The company reported $0.62 earnings per share for the quarter, beating analysts' consensus estimates of $0.45 by $0.17. The business had revenue of $1.55 billion during the quarter, compared to analyst estimates of $1.48 billion. Snowflake had a negative net margin of 20.07% and a negative return on equity of 46.32%. Snowflake's revenue was up 35.1% compared to the same quarter last year. During the same period last year, the business earned $0.35 EPS. Sell-side analysts anticipate that Snowflake will post -1.46 EPS for the current fiscal year.

Insider Activity

In other news, CAO Emily Ho sold 768 shares of the business's stock in a transaction that occurred on Wednesday, September 16th. The shares were sold at an average price of $332.93, for a total transaction of $255,690.24. Following the completion of the transaction, the chief accounting officer directly owned 39,958 shares of the company's stock, valued at $13,303,216.94. The trade was a 1.89% 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 sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Director Frank Slootman sold 102,791 shares of the business's stock in a transaction that occurred on Monday, September 21st. The shares were sold at an average price of $335.22, for a total transaction of $34,457,599.02. Following the transaction, the director directly owned 19,024 shares of the company's stock, valued at $6,377,225.28. The trade was a 84.38% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders have sold 1,246,429 shares of company stock worth $396,227,952. 4.80% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Snowflake

A number of large investors have recently added to or reduced their stakes in the stock. Janus Henderson Group PLC boosted its stake in shares of Snowflake by 20.4% in the 4th quarter. Janus Henderson Group PLC now owns 2,452,425 shares of the company's stock worth $537,907,000 after buying an additional 415,951 shares during the last quarter. Pictet Asset Management Holding SA increased its position in Snowflake by 44.7% during the first quarter. Pictet Asset Management Holding SA now owns 2,600,571 shares of the company's stock valued at $392,259,000 after acquiring an additional 803,110 shares during the last quarter. Jericho Capital Asset Management L.P. purchased a new stake in Snowflake during the fourth quarter valued at $345,619,000. Swedbank AB increased its position in Snowflake by 24.0% during the first quarter. Swedbank AB now owns 1,649,771 shares of the company's stock valued at $248,818,000 after acquiring an additional 319,356 shares during the last quarter. Finally, Gotham Asset Management LLC lifted its holdings in Snowflake by 3.5% in the fourth quarter. Gotham Asset Management LLC now owns 990,125 shares of the company's stock valued at $217,194,000 after acquiring an additional 33,586 shares during the period. Institutional investors own 65.10% of the company's stock.

Key Headlines Impacting Snowflake

Here are the key news stories impacting Snowflake this week:

• Positive Sentiment: Needham reaffirmed its Buy rating and maintained a $450 price target, implying meaningful upside from recent trading levels. Snowflake's Buy Rating Reaffirmed at Needham
• Positive Sentiment: Snowflake appointed database researcher Jeff Naughton as a Technical Fellow. His work will focus on data systems for AI agents and changing enterprise workloads, supporting the company’s long-term product and technology strategy. Jeff Naughton Joins Snowflake
• Positive Sentiment: An investor letter highlighted Snowflake’s ability to benefit as businesses deploy AI across enterprise data workloads, reinforcing the bull case that AI adoption can drive usage and demand. Snowflake Capitalizing on AI Demand
• Neutral Sentiment: Snowflake remained a heavily followed and “trending” stock, but the coverage largely reiterated previously known fundamentals rather than introducing a new business catalyst. Snowflake Is a Trending Stock
• Negative Sentiment: Valuation concerns likely pressured the shares after a substantial year-to-date rally. Analysts noted that investor expectations have risen faster than earnings, while Snowflake remains GAAP-unprofitable and trades at a demanding valuation. Expectations Are Soaring Faster Than Earnings
• Negative Sentiment: Snowflake declined more than the broader market during the latest session, suggesting profit-taking and sensitivity to high-growth technology valuations. Broader questions about AI spending and OpenAI’s lower-than-expected revenue run rate may also have increased caution around AI-related stocks. Snowflake Sees a More Significant Dip Than the Broader Market

Snowflake Company Profile

Snowflake Inc NYSE: SNOW provides a cloud-based data platform that enables organizations to store, process, analyze and share data. Its platform is designed to support data warehousing, data lakes, data engineering, data science, application development and artificial intelligence workloads in a single environment.

Snowflake's services include cloud data storage and computing, data sharing and collaboration tools, governance and security capabilities, and access to third-party data through the Snowflake Marketplace.

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