Snowflake (NYSE:SNOW) Stock Rating Upgraded by Phillip Securities

Key Points

• Phillip Securities upgraded Snowflake to “strong buy,” while broader analyst sentiment remains positive with a consensus “Moderate Buy” rating and an average price target of $414.24.
• Snowflake’s latest quarterly results exceeded expectations, with adjusted EPS of $0.62 versus the $0.45 estimate and revenue of $1.55 billion, up 35.1% year over year.
• Shares opened at $328.33 and remain well below the 12-month high of $384.56; insiders have sold more than $387 million in stock over the past 90 days, while institutional investors own 65.1% of shares.

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

Other analysts have also issued research reports about the stock. Mizuho set a $425.00 target price on shares of Snowflake in a research note on Thursday, September 3rd. Weiss Ratings reissued a "sell (e+)" rating on shares of Snowflake in a research report on Tuesday, September 8th. Canaccord Genuity Group boosted their price target on shares of Snowflake from $325.00 to $450.00 and gave the stock a "buy" rating in a report on Thursday, September 3rd. Piper Sandler reaffirmed an "overweight" rating and issued a $450.00 price objective (up from $320.00) on shares of Snowflake in a research report on Thursday, September 3rd. Finally, KeyCorp increased their price objective on shares of Snowflake from $285.00 to $325.00 and gave the company an "overweight" rating in a research note on Thursday, July 16th. One equities research analyst has rated the stock with a Strong Buy rating, thirty-four have issued a Buy rating, five have issued a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and a consensus price target of $414.24.

Snowflake Trading Down 2.3%

Shares of Snowflake stock opened at $328.33 on Friday. The stock has a fifty day simple moving average of $319.52 and a 200 day simple moving average of $238.69. Snowflake has a 12-month low of $118.30 and a 12-month high of $384.56. The company has a market capitalization of $115.83 billion, a P/E ratio of -103.25 and a beta of 1.33. The company has a current ratio of 0.94, a quick ratio of 0.94 and a debt-to-equity ratio of 1.06.

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

Insider Activity at Snowflake

In related news, CRO Jonathan Beaulier sold 755 shares of the stock in a transaction dated Wednesday, September 23rd. The shares were sold at an average price of $336.36, for a total transaction of $253,951.80. Following the completion of the transaction, the executive owned 211,619 shares in the company, valued at approximately $71,180,166.84. This represents a 0.36% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, SVP Vivek Raghunathan sold 3,876 shares of the firm's stock in a transaction dated Wednesday, September 16th. The stock was sold at an average price of $318.51, for a total transaction of $1,234,544.76. Following the sale, the senior vice president owned 240,453 shares of the company's stock, valued at $76,586,685.03. This trade represents a 1.59% decrease in their position. 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. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last ninety days, insiders sold 1,234,616 shares of company stock worth $387,557,612. 4.80% of the stock is owned by company insiders.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently modified their holdings of SNOW. Basecamp Wealth Advisors LLC grew its holdings in Snowflake by 140.5% during the first quarter. Basecamp Wealth Advisors LLC now owns 202 shares of the company's stock valued at $30,000 after purchasing an additional 118 shares during the period. Emerald Advisers LLC increased its position in Snowflake by 95.2% in the first quarter. Emerald Advisers LLC now owns 205 shares of the company's stock worth $31,000 after buying an additional 100 shares during the last quarter. MV Capital Management Inc. bought a new stake in shares of Snowflake in the fourth quarter valued at $32,000. Copos Capital S.a r.l. bought a new stake in shares of Snowflake in the fourth quarter valued at $35,000. Finally, Global Assets Advisory LLC bought a new stake in shares of Snowflake in the first quarter valued at $37,000. 65.10% of the stock is owned by institutional investors.

Key Headlines Impacting Snowflake

Here are the key news stories impacting Snowflake this week:

• Positive Sentiment: An analyst initiated or upgraded Snowflake to a “buy” rating, signaling confidence in the company’s AI Data Cloud growth opportunity and long-term competitive position. Snowflake stock just scored a new buy rating
• Neutral Sentiment: Snowflake announced plans to privately place $3.5 billion of 0.00% convertible senior notes with qualified institutional buyers: $1.3 billion due in 2029 and $2.2 billion due in 2031. The company also plans transactions intended to reduce potential dilution. The capital could strengthen its balance sheet, refinance existing obligations and provide funding for acquisitions or investments in the competitive AI data market. Snowflake announces proposed private placement
• Negative Sentiment: Investors focused on the possibility that the convertible notes could eventually be exchanged for shares, creating dilution and weighing on per-share value. The size of the financing also raised concerns about Snowflake’s need for additional capital despite the notes carrying no cash interest. Why Snowflake stock is falling
• Negative Sentiment: Snowflake declined alongside other enterprise software stocks after Meta announced it hired MongoDB’s CEO as its chief enterprise platform officer. The move intensified concerns about competition and strategic shifts in enterprise data and platform services, adding to pressure from the debt announcement. Enterprise software stocks fall after Meta announcement

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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