Snowflake (NYSE:SNOW) Stock Price Down 1.9% - Should You Sell?

Key Points

• Snowflake shares fell 1.9% to about $331.85, despite strong quarterly results: revenue rose 35.1% year over year to $1.55 billion and adjusted EPS of $0.62 exceeded estimates.
• Analysts remain broadly bullish, with a consensus “Moderate Buy” rating and an average price target of approximately $414, supported by accelerating product revenue, AI adoption and enterprise expansion.
• Key risks include a demanding valuation, ongoing net losses, insider selling and reduced fiscal 2027 gross-margin guidance to 74% as lower-margin AI workloads grow.

Snowflake Inc. (NYSE:SNOW - Get Free Report)'s share price dropped 1.9% during trading on Friday . The stock traded as low as $330.14 and last traded at $331.8460. 4,309,302 shares changed hands during mid-day trading, a decline of 36% from the average daily volume of 6,726,747 shares. The stock had previously closed at $338.39.

Key Stories Impacting Snowflake

Here are the key news stories impacting Snowflake this week:

• Positive Sentiment: Snowflake’s product revenue increased 37% in fiscal second quarter, supported by AI adoption, platform consumption and enterprise expansion. The acceleration strengthens the company’s competitive position against larger technology vendors. Snowflake product revenue article
• Positive Sentiment: Upward earnings-estimate revisions and favorable analyst forecasts are supporting the bullish case. The average Wall Street target is approximately $414, while several firms have recently set targets ranging from $440 to $490. Snowflake earnings estimates article
• Positive Sentiment: Recent results provide fundamental support: revenue reached about $1.55 billion, up 35% year over year, and adjusted earnings exceeded expectations. Snowflake’s AI platform is also gaining visibility through new enterprise applications and partnerships.
• Neutral Sentiment: Investor attention has increased sharply, but coverage focused on search interest and analyst targets is not, by itself, a change in the company’s fundamentals. Snowflake investor attention article
• Negative Sentiment: Snowflake reduced its fiscal 2027 non-GAAP product gross-margin guidance to 74%, citing a greater mix of lower-margin AI workloads. Continued AI growth could therefore pressure profitability even as revenue accelerates. Snowflake AI margin article
• Negative Sentiment: Several executives, including Christian Kleinerman, Vivek Raghunathan and Emily Ho, sold shares under pre-arranged plans primarily to cover tax withholding on vested equity awards. The sales are not necessarily discretionary bearish bets, but may add short-term supply and caution.
• Negative Sentiment: After a substantial rally, Snowflake’s valuation remains demanding while the company continues to report losses. That leaves the stock vulnerable to profit-taking if growth, margins or AI monetization fall short of elevated expectations.

Analysts Set New Price Targets

Several research analysts recently issued reports on the company. KeyCorp raised their target price on Snowflake from $285.00 to $325.00 and gave the stock an "overweight" rating in a research report on Thursday, July 16th. DA Davidson upped their target price on Snowflake from $300.00 to $450.00 and gave the stock a "buy" rating in a research report on Thursday, September 3rd. Morgan Stanley increased their price objective on Snowflake from $300.00 to $470.00 and gave the stock an "overweight" rating in a research note on Thursday, September 3rd. Citigroup raised their price objective on Snowflake from $395.00 to $490.00 and gave the company a "buy" rating in a research note on Thursday, September 3rd. Finally, Loop Capital lifted their price objective on shares of Snowflake from $290.00 to $320.00 and gave the stock a "buy" rating in a report on Wednesday, June 3rd. Thirty-four analysts have rated the stock with a Buy rating, five have assigned a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, the company has a consensus rating of "Moderate Buy" and a consensus target price of $414.24.

Snowflake Price Performance

The firm has a 50 day moving average price of $310.58 and a two-hundred day moving average price of $230.80. The company has a market cap of $117.08 billion, a P/E ratio of -104.35 and a beta of 1.33. 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 (NYSE:SNOW - Get Free Report) last released its quarterly earnings data on Wednesday, September 2nd. The company reported $0.62 EPS for the quarter, beating the consensus estimate of $0.45 by $0.17. Snowflake had a negative net margin of 20.07% and a negative return on equity of 46.32%. The business had revenue of $1.55 billion for the quarter, compared to the consensus estimate of $1.48 billion. During the same period in the prior year, the firm earned $0.35 earnings per share. The company's revenue was up 35.1% compared to the same quarter last year. On average, analysts predict that Snowflake Inc. will post -1.57 EPS for the current fiscal year.

Insider Buying and Selling at Snowflake

In other news, Director Frank Slootman sold 289,685 shares of the firm's stock in a transaction dated Monday, July 20th. The stock was sold at an average price of $274.39, for a total transaction of $79,486,667.15. Following the transaction, the director directly owned 28,535 shares of the company's stock, valued at approximately $7,829,718.65. This trade represents a 91.03% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Michael Speiser sold 50,338 shares of the business's stock in a transaction dated Friday, August 7th. The shares were sold at an average price of $324.06, for a total value of $16,312,532.28. Following the completion of the sale, the director directly owned 26,036 shares of the company's stock, valued at approximately $8,437,226.16. This trade represents a 65.91% 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. Insiders have sold 1,045,087 shares of company stock valued at $314,431,792 over the last ninety days. Insiders own 4.80% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently bought and sold shares of the business. Wellington Altus USA Inc. purchased a new stake in Snowflake in the second quarter worth $102,000. Anchor Investment Management LLC bought a new position in Snowflake in the 2nd quarter worth $76,000. Sequoia Financial Advisors LLC lifted its position in shares of Snowflake by 14.2% in the 2nd quarter. Sequoia Financial Advisors LLC now owns 39,598 shares of the company's stock worth $10,078,000 after purchasing an additional 4,927 shares during the period. MCF Advisors LLC lifted its position in shares of Snowflake by 1,557.9% in the 2nd quarter. MCF Advisors LLC now owns 315 shares of the company's stock worth $80,000 after purchasing an additional 296 shares during the period. Finally, National Pension Service boosted its stake in shares of Snowflake by 3.3% during the 2nd quarter. National Pension Service now owns 690,349 shares of the company's stock valued at $175,694,000 after purchasing an additional 21,915 shares in the last quarter. Institutional investors own 65.10% of the company's stock.

About Snowflake

Snowflake Inc NYSE: SNOW is a cloud-based data platform company that helps organizations store, process, analyze and share data. Its platform is designed to support data warehousing, data lakes, data engineering, data science, application development and business intelligence across public cloud environments.

Snowflake's Data Cloud enables customers to consolidate and access structured, semi-structured and unstructured data while supporting secure data sharing and collaboration. Its offerings include Snowflake Cortex, which provides artificial intelligence and machine-learning capabilities, as well as tools for developing data applications and using data from Snowflake's marketplace and partner ecosystem.

Founded in 2012, Snowflake serves businesses, government organizations and other institutions globally through cloud infrastructure provided by major public-cloud platforms.

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