Snowflake (NYSE:SNOW) Hits New 1-Year High - Still a Buy?

Key Points

• Snowflake shares hit a new 52-week high of $340.40, significantly above the average analyst price target of $296.68. Analysts remain broadly bullish, with 34 Buy ratings, five Holds and one Sell, resulting in a consensus “Moderate Buy” rating.
• The company exceeded quarterly expectations, reporting $0.39 in EPS versus $0.32 expected and revenue of $1.39 billion, up 33.5% year over year. However, Snowflake remains unprofitable, with a negative net margin and analysts forecasting a full-year loss.
• Insiders sold more than $508 million worth of shares during the quarter, including sizable sales by directors Frank Slootman and Michael Speiser under pre-arranged trading plans. Institutional investors own 65.1% of the stock.

Snowflake Inc. (NYSE:SNOW - Get Free Report)'s share price reached a new 52-week high on Monday . The company traded as high as $340.40 and last traded at $338.9710, with a volume of 550645 shares trading hands. The stock had previously closed at $330.49.

Analyst Ratings Changes

Several research firms have recently issued reports on SNOW. Scotiabank upped their price objective on Snowflake from $285.00 to $320.00 and gave the stock a "sector outperform" rating in a research report on Monday, June 8th. TD Cowen reissued a "buy" rating and set a $300.00 target price on shares of Snowflake in a research report on Wednesday, June 3rd. UBS Group reissued a "buy" rating on shares of Snowflake in a research report on Monday, June 22nd. Truist Financial upped their price target on Snowflake from $275.00 to $300.00 and gave the company a "buy" rating in a report on Friday, June 5th. Finally, Morgan Stanley upped their price target on Snowflake from $245.00 to $300.00 and gave the company an "overweight" rating in a report on Thursday, May 28th. Thirty-four research 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's stock. According to MarketBeat, Snowflake currently has a consensus rating of "Moderate Buy" and an average price target of $296.68.

Snowflake Stock Performance

The firm has a fifty day simple moving average of $262.16 and a 200-day simple moving average of $201.05. The company has a market cap of $115.15 billion, a PE ratio of -94.33 and a beta of 1.33. The company has a quick ratio of 1.05, a current ratio of 1.05 and a debt-to-equity ratio of 1.18.

Snowflake (NYSE:SNOW - Get Free Report) last posted its earnings results on Wednesday, May 27th. The company reported $0.39 EPS for the quarter, topping analysts' consensus estimates of $0.32 by $0.07. The business had revenue of $1.39 billion for 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%.The business's revenue was up 33.5% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $0.24 earnings per share. On average, research analysts forecast that Snowflake Inc. will post -1.84 EPS for the current fiscal year.

Insiders Place Their Bets

In other Snowflake news, Director Frank Slootman sold 437,076 shares of the business's stock in a transaction that occurred on Friday, May 29th. The stock was sold at an average price of $252.43, for a total value of $110,331,094.68. Following the completion of the sale, the director owned 38,046 shares in the company, valued at approximately $9,603,951.78. The trade was a 91.99% 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 L. Speiser sold 50,338 shares of the stock in a transaction that occurred on Friday, June 5th. The shares were sold at an average price of $245.21, for a total value of $12,343,380.98. Following the completion of the sale, the director directly owned 27,716 shares of the company's stock, valued at $6,796,240.36. The trade was a 64.49% decrease in their ownership of the stock. 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. Insiders have sold a total of 2,091,260 shares of company stock valued at $508,844,831 over the last quarter. Company insiders own 4.80% of the company's stock.

Institutional Trading of Snowflake

Large investors have recently bought and sold shares of the business. Assetmark Inc. lifted its position in shares of Snowflake by 99.1% in the fourth quarter. Assetmark Inc. now owns 198,655 shares of the company's stock valued at $43,577,000 after acquiring an additional 98,870 shares in the last quarter. Jennison Associates LLC boosted its stake in shares of Snowflake by 27.7% during the fourth quarter. Jennison Associates LLC now owns 11,603,302 shares of the company's stock valued at $2,545,300,000 after acquiring an additional 2,519,413 shares during the last quarter. Swedbank AB increased its position in Snowflake by 6.0% during the 4th quarter. Swedbank AB now owns 1,330,415 shares of the company's stock worth $291,840,000 after purchasing an additional 75,419 shares in the last quarter. Mitsubishi UFJ Trust & Banking Corp increased its position in Snowflake by 8.2% during the 4th quarter. Mitsubishi UFJ Trust & Banking Corp now owns 144,234 shares of the company's stock worth $31,639,000 after purchasing an additional 10,972 shares in the last quarter. Finally, Whittier Trust Co. raised its stake in Snowflake by 17,351.1% in the 4th quarter. Whittier Trust Co. now owns 58,112 shares of the company's stock valued at $13,629,000 after purchasing an additional 57,779 shares during the last quarter. Institutional investors and hedge funds own 65.10% of the company's stock.

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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