Snowflake (NYSE:SNOW) Trading 1.5% Higher - Here's What Happened

Key Points

• Snowflake shares rose 1.5% to $337.52 in Monday trading, despite volume running 45% below the average daily level.
• Analysts remain broadly bullish, with 34 Buy ratings, five Holds and one Sell; the consensus target price is $414.24, above the current share price.
• Snowflake exceeded quarterly expectations, reporting $0.62 in adjusted EPS versus a $0.45 estimate and $1.55 billion in revenue versus $1.48 billion expected. Revenue increased 35.1% year over year, although the company continues to report negative net margins and return on equity.

Snowflake Inc. (NYSE:SNOW - Get Free Report) shares shot up 1.5% during trading on Monday . The company traded as high as $339.53 and last traded at $337.52. Approximately 3,680,721 shares were traded during mid-day trading, a decline of 45% from the average daily volume of 6,707,192 shares. The stock had previously closed at $332.43.

Wall Street Analysts Forecast Growth

Several brokerages recently weighed in on SNOW. Jefferies Financial Group set a $430.00 target price on Snowflake and gave the company a "buy" rating in a research note on Thursday, September 3rd. Rosenblatt Securities upped their price target on shares of Snowflake from $285.00 to $345.00 and gave the company a "buy" rating in a report on Tuesday, September 1st. DA Davidson raised their price objective on shares of Snowflake from $300.00 to $450.00 and gave the company a "buy" rating in a research report on Thursday, September 3rd. Sanford C. Bernstein lifted their price objective on shares of Snowflake from $195.00 to $250.00 and gave the stock a "market perform" rating in a research note on Thursday, May 28th. Finally, Loop Capital boosted their target price 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 issued a Hold rating and one has given a Sell rating to the company. According to MarketBeat, the stock presently has an average rating of "Moderate Buy" and a consensus target price of $414.24.

Snowflake Stock Performance

The company has a debt-to-equity ratio of 1.06, a current ratio of 0.94 and a quick ratio of 0.94. The firm has a market capitalization of $119.08 billion, a PE ratio of -106.14 and a beta of 1.33. The firm has a fifty day moving average price of $311.99 and a 200 day moving average price of $231.94.

Snowflake (NYSE:SNOW - Get Free Report) last issued its quarterly earnings results on Wednesday, September 2nd. The company reported $0.62 earnings per share for the quarter, topping analysts' consensus estimates of $0.45 by $0.17. The firm had revenue of $1.55 billion for the quarter, compared to analysts' expectations of $1.48 billion. Snowflake had a negative return on equity of 46.32% and a negative net margin of 20.07%.Snowflake's revenue was up 35.1% on a year-over-year basis. During the same quarter last year, the business posted $0.35 EPS. Research analysts anticipate that Snowflake Inc. will post -1.57 earnings per share for the current fiscal year.

Insider Buying and Selling at Snowflake

In other Snowflake news, EVP Christian Kleinerman sold 2,986 shares of Snowflake stock in a transaction that occurred on Wednesday, September 16th. The shares were sold at an average price of $318.51, for a total transaction of $951,070.86. Following the transaction, the executive vice president directly owned 334,013 shares in the company, valued at approximately $106,386,480.63. The trade was a 0.89% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. 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. Also, CRO Jonathan Beaulier sold 12,292 shares of Snowflake stock in a transaction that occurred on Wednesday, September 16th. The stock was sold at an average price of $336.12, for a total transaction of $4,131,587.04. Following the transaction, the executive owned 213,085 shares in the company, valued at approximately $71,622,130.20. The trade was a 5.45% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold 1,035,720 shares of company stock valued at $312,258,835 over the last three months. 4.80% of the stock is owned by insiders.

Institutional Trading of Snowflake

Several hedge funds and other institutional investors have recently modified their holdings of the business. Nuveen LLC lifted its stake in Snowflake by 2.3% in the 4th quarter. Nuveen LLC now owns 5,277,851 shares of the company's stock worth $1,157,749,000 after acquiring an additional 116,521 shares in the last quarter. Geode Capital Management LLC grew its stake in Snowflake by 5.5% during the 4th quarter. Geode Capital Management LLC now owns 4,809,689 shares of the company's stock valued at $1,052,195,000 after acquiring an additional 249,668 shares in the last quarter. Norges Bank purchased a new position in Snowflake during the 4th quarter valued at about $974,091,000. Janus Henderson Group PLC increased its holdings 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 valued at $537,907,000 after purchasing an additional 415,951 shares during the period. Finally, Legal & General Group Plc increased its holdings in shares of Snowflake by 5.2% in the 4th quarter. Legal & General Group Plc now owns 1,949,962 shares of the company's stock valued at $427,744,000 after purchasing an additional 96,373 shares during the period. Institutional investors and hedge funds 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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