Snowflake Inc. (NYSE:SNOW) Receives Consensus Rating of "Moderate Buy" from Analysts

Key Points

• Analyst sentiment is broadly positive: Snowflake has a “Moderate Buy” consensus from 40 analysts, including 34 buy ratings, with an average 12-month price target of approximately $296.68.
• Snowflake reported strong quarterly results: The company earned $0.39 per share versus the $0.32 consensus estimate and generated $1.39 billion in revenue, up 33.5% year over year.
• Investors face both growth opportunities and risks: New AI products and partnerships may expand enterprise adoption, while substantial insider selling, security concerns and the stock’s premium valuation remain potential overhangs.

Snowflake Inc. (NYSE:SNOW - Get Free Report) has been given an average rating of "Moderate Buy" by the forty ratings firms that are presently covering the company, Marketbeat reports. One equities research analyst has rated the stock with a sell rating, five have assigned a hold rating and thirty-four have given a buy rating to the company. The average twelve-month target price among brokerages that have updated their coverage on the stock in the last year is $296.6757.

Several research firms have commented on SNOW. Mizuho boosted their target price on Snowflake from $220.00 to $295.00 and gave the company an "outperform" rating in a research note on Thursday, May 28th. Evercore set a $200.00 price target on shares of Snowflake in a research note on Tuesday, April 14th. Royal Bank Of Canada lifted their price objective on shares of Snowflake from $284.00 to $313.00 and gave the company an "outperform" rating in a report on Friday, July 17th. Oppenheimer boosted their price objective on shares of Snowflake from $250.00 to $295.00 and gave the stock an "outperform" rating in a research report on Thursday, May 28th. Finally, TD Cowen restated a "buy" rating and set a $300.00 target price on shares of Snowflake in a report on Wednesday, June 3rd.

Insider Buying and Selling at Snowflake

In other news, Director Frank Slootman sold 10,315 shares of the firm's stock in a transaction dated Tuesday, July 21st. The stock was sold at an average price of $275.10, for a total value of $2,837,656.50. Following the completion of the transaction, the director owned 28,535 shares in the company, valued at $7,849,978.50. This trade represents a 26.55% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Teresa Briggs sold 343 shares of Snowflake stock in a transaction dated Monday, July 6th. The shares were sold at an average price of $255.11, for a total value of $87,502.73. Following the completion of the sale, the director directly owned 5,060 shares in the company, valued at approximately $1,290,856.60. This represents a 6.35% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders sold 2,091,260 shares of company stock valued at $508,844,831. Corporate insiders own 4.80% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds have recently bought and sold shares of SNOW. HHM Wealth Advisors LLC lifted its holdings in shares of Snowflake by 50.0% during the fourth quarter. HHM Wealth Advisors LLC now owns 150 shares of the company's stock worth $33,000 after purchasing an additional 50 shares during the period. United Asset Strategies Inc. raised its position in Snowflake by 1.4% during the 4th quarter. United Asset Strategies Inc. now owns 3,544 shares of the company's stock worth $777,000 after buying an additional 50 shares during the last quarter. Physician Wealth Advisors Inc. raised its position in Snowflake by 56.0% during the 4th quarter. Physician Wealth Advisors Inc. now owns 142 shares of the company's stock worth $31,000 after buying an additional 51 shares during the last quarter. Great Valley Advisor Group Inc. lifted its stake in shares of Snowflake by 4.4% in the 4th quarter. Great Valley Advisor Group Inc. now owns 1,438 shares of the company's stock worth $316,000 after acquiring an additional 60 shares during the period. Finally, Johnson Investment Counsel Inc. lifted its stake in shares of Snowflake by 4.5% in the 4th quarter. Johnson Investment Counsel Inc. now owns 1,383 shares of the company's stock worth $303,000 after acquiring an additional 60 shares during the period. 65.10% of the stock is currently owned by institutional investors.

Key Headlines Impacting Snowflake

Here are the key news stories impacting Snowflake this week:

• Positive Sentiment: AI platform expansion: Snowflake introduced Cortex AI Gateway, which helps enterprises govern AI agents, control costs and strengthen security. The product could increase Snowflake’s role in managing production-grade enterprise AI workloads. Snowflake Unveils Cortex AI Gateway
• Positive Sentiment: Growing ecosystem: Snowflake expanded its collaboration with phData to help customers deploy governed AI applications and modernize analytics. Zeotap also launched a composable customer-data-platform application on the Snowflake Marketplace, supporting broader platform adoption. phData and Snowflake Expand Collaboration
• Positive Sentiment: Constructive Wall Street view: BTIG issued a bullish outlook, while Snowflake’s average analyst rating remains “Moderate Buy.” Heavy activity in long-dated put options also indicates that some investors are willing to make bullish commitments at lower prices. BTIG Research Forecasts Strong Price Appreciation
• Neutral Sentiment: Upcoming updates: Snowflake will participate in investor conferences and is scheduled to report fiscal second-quarter 2027 results on September 2. Investors will look for evidence that AI demand is translating into consumption growth and improved profitability. Snowflake Investor Conferences
• Negative Sentiment: Security overhang: A Canadian hacker pleaded guilty to stealing data from more than 165 Snowflake customer environments and extorting victims. Although the case involves compromised customer credentials and a lack of multifactor authentication rather than a newly announced breach, it could renew concerns about platform security and reputational risk. Canadian Pleads Guilty to Snowflake Data Theft Attacks
• Negative Sentiment: Insider selling and valuation: EVP Christian Kleinerman sold 10,000 shares worth approximately $2.97 million under a pre-arranged Rule 10b5-1 plan. The sale is relatively small compared with his remaining stake, but repeated insider sales may concern investors after SNOW’s sharp rally and premium valuation. Christian Kleinerman Sells Snowflake Shares

Snowflake Stock Performance

SNOW opened at $318.02 on Friday. The business's 50-day moving average price is $260.67 and its two-hundred day moving average price is $200.20. Snowflake has a 1 year low of $118.30 and a 1 year high of $323.10. The company has a market capitalization of $110.23 billion, a price-to-earnings ratio of -90.35 and a beta of 1.33. The company has a debt-to-equity ratio of 1.18, a current ratio of 1.05 and a quick ratio of 1.05.

Snowflake (NYSE:SNOW - Get Free Report) last posted its quarterly earnings data on Wednesday, May 27th. The company reported $0.39 earnings per share for the quarter, topping the consensus estimate of $0.32 by $0.07. The company had revenue of $1.39 billion during the quarter, compared to analysts' expectations of $1.32 billion. Snowflake had a negative return on equity of 50.50% and a negative net margin of 23.79%.Snowflake's revenue for the quarter was up 33.5% compared to the same quarter last year. During the same period in the prior year, the firm earned $0.24 earnings per share. Equities analysts expect that Snowflake will post -1.84 EPS for the current fiscal year.

Snowflake Company Profile

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.

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