Snowflake (NYSE:SNOW) Announces Quarterly Earnings Results

Key Points

• Snowflake reported EPS of ($0.84), missing the consensus $0.31 by $1.15, and posted negative profitability metrics including a return on equity of -42.98% and a net margin of -33.53%.
• Despite the earnings miss, shares rose to $265.34 on heavy volume, and analysts mostly lifted targets — the stock holds a consensus rating of "Moderate Buy" with an average price target of $270.31.

Snowflake (NYSE:SNOW - Get Free Report) posted its earnings results on Wednesday. The company reported ($0.84) earnings per share (EPS) for the quarter, missing the consensus estimate of $0.31 by ($1.15), Zacks reports. Snowflake had a negative return on equity of 42.98% and a negative net margin of 33.53%.

Snowflake Stock Performance

Shares of SNOW stock traded up $5.66 during trading on Wednesday, reaching $265.34. 10,820,690 shares of the company's stock traded hands, compared to its average volume of 5,112,332. The firm's 50-day moving average is $250.14 and its 200 day moving average is $225.58. The company has a market capitalization of $89.90 billion, a P/E ratio of -63.94 and a beta of 1.09. Snowflake has a 1 year low of $120.10 and a 1 year high of $280.67. The company has a current ratio of 1.48, a quick ratio of 1.48 and a debt-to-equity ratio of 0.96.

Analyst Ratings Changes

Several equities research analysts have commented on the stock. Mizuho increased their price objective on shares of Snowflake from $260.00 to $285.00 and gave the company an "outperform" rating in a research note on Monday, November 17th. Sanford C. Bernstein lifted their price target on Snowflake from $191.00 to $221.00 and gave the stock a "market perform" rating in a report on Thursday, August 28th. Piper Sandler upped their price objective on Snowflake from $215.00 to $285.00 and gave the company an "overweight" rating in a research note on Thursday, August 28th. Morgan Stanley lifted their target price on Snowflake from $262.00 to $272.00 and gave the stock an "overweight" rating in a research note on Thursday, August 28th. Finally, Rosenblatt Securities increased their price target on shares of Snowflake from $250.00 to $275.00 and gave the company a "buy" rating in a research report on Monday. Two analysts have rated the stock with a Strong Buy rating, thirty-four have given a Buy rating, three have given a Hold rating and three have given a Sell rating to the company's stock. According to data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average price target of $270.31.

Insider Buying and Selling at Snowflake

In other Snowflake news, SVP Vivek Raghunathan sold 11,801 shares of the stock in a transaction on Tuesday, September 30th. The stock was sold at an average price of $223.22, for a total transaction of $2,634,219.22. Following the sale, the senior vice president owned 241,854 shares in the company, valued at $53,986,649.88. This represents a 4.65% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, EVP Christian Kleinerman sold 10,000 shares of Snowflake stock in a transaction on Monday, November 3rd. The shares were sold at an average price of $277.73, for a total value of $2,777,300.00. Following the completion of the transaction, the executive vice president owned 522,450 shares of the company's stock, valued at approximately $145,100,038.50. This trade represents a 1.88% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 211,305 shares of company stock valued at $50,590,799 in the last 90 days. 6.80% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Snowflake

Institutional investors have recently bought and sold shares of the stock. Scge Management L.P. purchased a new stake in shares of Snowflake during the 2nd quarter worth approximately $140,528,000. Arrowstreet Capital Limited Partnership grew its holdings in shares of Snowflake by 58.9% in the third quarter. Arrowstreet Capital Limited Partnership now owns 1,226,993 shares of the company's stock valued at $276,748,000 after purchasing an additional 454,899 shares in the last quarter. Sculptor Capital LP purchased a new position in shares of Snowflake in the second quarter valued at $44,754,000. Canada Pension Plan Investment Board increased its position in Snowflake by 57.1% in the second quarter. Canada Pension Plan Investment Board now owns 512,595 shares of the company's stock worth $114,703,000 after purchasing an additional 186,371 shares during the last quarter. Finally, Credit Agricole S A purchased a new stake in Snowflake during the third quarter valued at $32,053,000. 65.10% of the stock is currently owned by hedge funds and other institutional investors.

Snowflake Company Profile

Snowflake Inc provides a cloud-based data platform for various organizations in the United States and internationally. Its platform offers Data Cloud, which enables customers to consolidate data into a single source of truth to drive meaningful business insights, build data-driven applications, and share data and data products, as well as applies artificial intelligence (AI) for solving business problems.

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