Snowflake (NYSE:SNOW) Stock Price Expected to Rise, DA Davidson Analyst Says

Key Points

• DA Davidson raised Snowflake’s price target to $450 from $300 and maintained a “buy” rating, implying 46.43% upside from the prior close. The broader analyst consensus is “Moderate Buy,” with an average target of $363.73.
• Snowflake exceeded quarterly expectations, reporting adjusted EPS of $0.62 versus $0.45 expected and revenue of $1.55 billion versus $1.48 billion forecast. Revenue grew 35.1% year over year, supported by stronger demand and growing AI-related adoption.
• Risks remain despite the optimistic outlook: Snowflake continues to post negative GAAP margins and return on equity, trades at a high valuation, and insiders have sold more than $321 million of shares over the past 90 days.

Snowflake (NYSE:SNOW - Get Free Report) had its target price boosted by investment analysts at DA Davidson from $300.00 to $450.00 in a report issued on Thursday, Benzinga reports. The firm currently has a "buy" rating on the stock. DA Davidson's price target would suggest a potential upside of 46.43% from the company's previous close.

Other research analysts also recently issued research reports about the stock. Deutsche Bank Aktiengesellschaft set a $400.00 target price on shares of Snowflake in a research report on Thursday. Guggenheim reiterated a "neutral" rating on shares of Snowflake in a report on Monday, August 24th. Cantor Fitzgerald upped their target price on Snowflake from $282.00 to $405.00 and gave the stock an "overweight" rating in a research report on Monday. Raymond James Financial restated an "outperform" rating and set a $425.00 price target on shares of Snowflake in a research note on Thursday. Finally, Canaccord Genuity Group boosted their target price on shares of Snowflake from $325.00 to $450.00 and gave the stock a "buy" rating in a research report on Thursday. Thirty-four research analysts have rated the stock with a Buy rating, five have assigned a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average price target of $363.73.

Snowflake Stock Performance

Shares of SNOW opened at $307.31 on Thursday. The company has a current ratio of 1.05, a quick ratio of 1.05 and a debt-to-equity ratio of 1.18. The firm's fifty day simple moving average is $293.26 and its two-hundred day simple moving average is $218.27. Snowflake has a 12 month low of $118.30 and a 12 month high of $341.95. The stock has a market capitalization of $106.51 billion, a P/E ratio of -87.30 and a beta of 1.33.

Snowflake (NYSE:SNOW - Get Free Report) last announced its earnings results on Wednesday, September 2nd. The company reported $0.62 EPS for the quarter, beating the consensus estimate 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 return on equity of 50.50% and a negative net margin of 23.79%.The firm's revenue for the quarter was up 35.1% compared to the same quarter last year. During the same quarter in the prior year, the company earned $0.35 EPS. As a group, analysts predict that Snowflake will post -1.81 EPS for the current year.

Insider Buying and Selling

In related news, EVP Christian Kleinerman sold 25,000 shares of the firm's stock in a transaction dated Friday, August 7th. The shares were sold at an average price of $325.00, for a total transaction of $8,125,000.00. Following the completion of the sale, the executive vice president owned 340,379 shares in the company, valued at approximately $110,623,175. This trade represents a 6.84% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Michael L. Speiser sold 50,338 shares of the firm's stock in a transaction that occurred on Friday, June 5th. The stock was sold at an average price of $245.21, for a total transaction of $12,343,380.98. Following the sale, the director owned 27,716 shares of the company's stock, valued at approximately $6,796,240.36. The trade was a 64.49% 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 ninety days, insiders have sold 1,156,901 shares of company stock valued at $321,725,352. 4.80% of the stock is owned by insiders.

Institutional Trading of Snowflake

A number of institutional investors have recently added to or reduced their stakes in the stock. Kemnay Advisory Services Inc. purchased a new stake in Snowflake in the 4th quarter worth approximately $28,000. Greenline Wealth Management LLC purchased a new position in Snowflake in the 4th quarter worth approximately $29,000. Basecamp Wealth Advisors LLC lifted its holdings in shares of Snowflake by 140.5% during the 1st quarter. Basecamp Wealth Advisors LLC now owns 202 shares of the company's stock worth $30,000 after acquiring an additional 118 shares during the last quarter. Emerald Advisers LLC raised its position in Snowflake by 95.2% during the first quarter. Emerald Advisers LLC now owns 205 shares of the company's stock valued at $31,000 after purchasing an additional 100 shares in the last quarter. Finally, MV Capital Management Inc. bought a new position in shares of Snowflake during the 4th quarter valued at about $32,000. Hedge funds and other institutional investors own 65.10% of the company's stock.

Key Stories Impacting Snowflake

Here are the key news stories impacting Snowflake this week:

• Positive Sentiment: Quarterly results exceeded expectations: Snowflake reported adjusted EPS of $0.62 versus the $0.45 consensus estimate and revenue of $1.55 billion versus $1.48 billion expected. Revenue rose 35.1% year over year, while product revenue increased 37% to $1.49 billion. Snowflake lifts annual product revenue forecast
• Positive Sentiment: Raised guidance and improving profitability outlook: Management lifted its full-year product-revenue forecast and indicated fiscal 2027 product revenue of approximately $6.07 billion, alongside a 14.5% non-GAAP operating-margin target. The upgraded outlook suggests durable demand for Snowflake’s cloud data platform. Snowflake FY 2027 guidance
• Positive Sentiment: AI adoption is becoming a growth catalyst: Snowflake cited momentum in its AI coding agent CoCo and other offerings such as CoWork and Cortex. Analysts believe AI-driven workloads could continue to accelerate consumption and expand Snowflake’s competitive advantages. Wall Street analysts discuss Snowflake
• Positive Sentiment: Analyst support remains strong: Rosenblatt raised its price target to $345 and maintained a Buy rating. Other analysts see additional upside as Snowflake benefits from the AI trend. Rosenblatt price target
• Neutral Sentiment: Customer adoption provides validation: Sayari selected Snowflake to rebuild its commercial data model for AI, potentially reducing its data-infrastructure costs by more than 50%. However, the company has not quantified the revenue contribution from customers adopting AI. Sayari selects Snowflake
• Negative Sentiment: High valuation and ongoing losses remain concerns: Despite the earnings beat, Snowflake trades at an elevated valuation, has a negative GAAP net margin and return on equity, and faces criticism over stock-based compensation and dilution. High short interest could increase volatility if future growth or AI monetization disappoints.

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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