Snowflake Inc. (NYSE:SNOW) Stock Now Rated "Moderate Buy" by Sell-Side Analysts

Key Points

• Analysts rate Snowflake “Moderate Buy”: Of 42 covering analysts, 36 recommend buying, five rate it a hold and one recommends selling. The average 12-month price target is $413.87.
• Recent results exceeded expectations: Snowflake reported quarterly revenue of $1.55 billion, up 35.1% year over year and above estimates, while EPS of $0.62 beat consensus by $0.17.
• Profitability and valuation remain concerns: The company posted a negative net margin and return on equity, while insiders sold roughly $313.9 million of stock during the quarter, including major sales by executives Christian Kleinerman and Frank Slootman.

Shares of Snowflake Inc. (NYSE:SNOW - Get Free Report) have received an average rating of "Moderate Buy" from the forty-two analysts that are currently covering the company, MarketBeat.com reports. One equities research analyst has rated the stock with a sell recommendation, five have given a hold recommendation and thirty-six have given a buy recommendation to the company. The average 1 year target price among brokers that have covered the stock in the last year is $413.87.

Several brokerages have recently issued reports on SNOW. Truist Financial set a $425.00 price objective on shares of Snowflake and gave the company a "buy" rating in a research note on Thursday, September 3rd. Argus increased their target price on Snowflake from $300.00 to $450.00 and gave the stock a "buy" rating in a research report on Friday, September 4th. Wells Fargo & Company lifted their target price on Snowflake from $500.00 to $525.00 and gave the company an "overweight" rating in a report on Thursday, September 3rd. Royal Bank Of Canada boosted their price target on Snowflake from $372.00 to $440.00 and gave the company an "outperform" rating in a research report on Thursday, September 3rd. Finally, Morgan Stanley boosted their price target on Snowflake from $300.00 to $470.00 and gave the company an "overweight" rating in a research report on Thursday, September 3rd.

Snowflake Price Performance

SNOW opened at $319.56 on Wednesday. The company's 50 day simple moving average is $332.54 and its 200 day simple moving average is $257.95. The company has a debt-to-equity ratio of 1.06, a quick ratio of 0.94 and a current ratio of 0.94. Snowflake has a 1 year low of $118.30 and a 1 year high of $384.56. The stock has a market capitalization of $112.74 billion, a PE ratio of -100.49 and a beta of 1.35.

Snowflake (NYSE:SNOW - Get Free Report) last issued its quarterly earnings results on Wednesday, September 2nd. The company reported $0.62 EPS for the quarter, topping the consensus estimate of $0.45 by $0.17. The firm 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 for the quarter was up 35.1% compared to the same quarter last year. During the same quarter in the prior year, the business posted $0.35 earnings per share. As a group, sell-side analysts expect that Snowflake will post -1.44 EPS for the current year.

More Snowflake News

Here are the key news stories impacting Snowflake this week:

• Positive Sentiment: Snowflake’s consumption-based cloud data platform continues to benefit from AI adoption. The company’s revenue recently grew 35% year over year to $1.55 billion, exceeding analyst expectations, while adjusted earnings also surpassed estimates. Its partnerships and collaborations around secure data movement, sovereign AI and government workloads could create additional demand for Snowflake’s platform. Snowflake Grows Revenue 35% and Still Loses Money on Every Dollar
• Positive Sentiment: Broader optimism about the AI infrastructure spending cycle is supporting Snowflake’s investment narrative. Technology analyst Dan Ives argued that the AI buildout remains in its early stages, with Snowflake among the companies positioned to benefit as enterprises direct more spending toward data, computing and AI applications. The AI Buildout Is Only 15% Complete
• Neutral Sentiment: Recent commentary highlights Snowflake’s strong market performance and the possibility of further gains ahead of its next earnings report. However, these are largely market outlooks and price predictions rather than new company fundamentals. Price Prediction: Snowflake Will Hit $400 on This Date
• Negative Sentiment: Investors remain concerned that Snowflake still loses money despite rapid revenue growth. The company has a negative net margin and negative return on equity, while its elevated valuation leaves less room for disappointing consumption trends, weaker AI spending or cautious corporate budgets. Comparisons with more profitable technology companies also expose Snowflake’s ongoing path to sustained earnings as a risk. UiPath vs. Snowflake: Which Technology Stock Is a Better Buy?

Insider Transactions at Snowflake

In related news, EVP Christian Kleinerman sold 25,000 shares of the stock in a transaction that occurred on 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 of the company's stock, valued at approximately $110,623,175. This represents a 6.84% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Frank Slootman sold 251,010 shares of the stock in a transaction that occurred on Tuesday, August 18th. The stock was sold at an average price of $325.53, for a total transaction of $81,711,285.30. Following the sale, the director directly owned 28,535 shares of the company's stock, valued at approximately $9,288,998.55. This trade represents a 89.79% 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. Over the last quarter, insiders sold 946,429 shares of company stock valued at $313,903,628. 4.80% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently bought and sold shares of SNOW. Physician Wealth Advisors Inc. grew its position in Snowflake by 37.8% in the third quarter. Physician Wealth Advisors Inc. now owns 124 shares of the company's stock valued at $42,000 after acquiring an additional 34 shares in the last quarter. Nvwm LLC raised its stake in shares of Snowflake by 0.6% during the third quarter. Nvwm LLC now owns 6,215 shares of the company's stock valued at $2,110,000 after purchasing an additional 37 shares during the period. Myecfo LLC lifted its position in shares of Snowflake by 4.1% during the third quarter. Myecfo LLC now owns 968 shares of the company's stock worth $329,000 after purchasing an additional 38 shares in the last quarter. Fermata Advisors LLC lifted its position in shares of Snowflake by 4.9% during the third quarter. Fermata Advisors LLC now owns 893 shares of the company's stock worth $303,000 after purchasing an additional 42 shares in the last quarter. Finally, Abel Hall LLC lifted its position in shares of Snowflake by 3.8% during the third quarter. Abel Hall LLC now owns 1,189 shares of the company's stock worth $404,000 after purchasing an additional 44 shares in the last quarter. 65.10% of the stock is owned by institutional investors and hedge funds.

About Snowflake

Snowflake Inc is a cloud-based data platform company that helps organizations store, process, analyze and share data across public cloud environments. Its platform is designed to support data warehousing, data lakes, data engineering, data applications and analytics without requiring customers to manage the underlying hardware or software infrastructure.

Snowflake offers services for data sharing and collaboration, allowing organizations to securely exchange data with internal teams, customers, partners and third-party providers.

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