Snowflake (NYSE:SNOW) Hits New 52-Week High - Still a Buy?

Key Points

• Snowflake shares reached a new 52-week high, trading as high as $289.81 and up 4.8%, with a market capitalization of approximately $98.24 billion.
• Analyst sentiment remains favorable: 34 analysts rate the stock Buy, five rate it Hold and one rates it Sell, producing a “Moderate Buy” consensus and an average price target of $296.27.
• Snowflake exceeded quarterly expectations, reporting $1.39 billion in revenue and $0.39 in EPS, while revenue grew 33.5% year over year; however, the company remains unprofitable, with a negative net margin and expected full-year EPS of -$1.84.

Snowflake Inc. (NYSE:SNOW - Get Free Report)'s share price hit a new 52-week high on Wednesday . The stock traded as high as $289.81 and last traded at $283.9840, with a volume of 1243081 shares. The stock had previously closed at $270.36.

Wall Street Analyst Weigh In

A number of equities research analysts have issued reports on SNOW shares. Bank of America increased their price target on Snowflake from $205.00 to $300.00 and gave the stock a "buy" rating in a research note on Thursday, May 28th. Wells Fargo & Company reaffirmed an "overweight" rating on shares of Snowflake in a research note on Wednesday. Weiss Ratings lowered Snowflake from a "sell (d-)" rating to a "sell (e+)" rating in a research note on Thursday, June 11th. KeyCorp increased 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. Finally, Deutsche Bank Aktiengesellschaft lifted their target price on Snowflake from $230.00 to $250.00 and gave the company a "buy" rating in a research note on Thursday, May 28th. Thirty-four analysts have rated the stock with a Buy rating, five have assigned a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat, the company presently has an average rating of "Moderate Buy" and a consensus target price of $296.27.

Snowflake Trading Up 4.8%

The stock has a 50 day simple moving average of $243.29 and a 200-day simple moving average of $195.70. The company has a current ratio of 1.05, a quick ratio of 1.05 and a debt-to-equity ratio of 1.18. The firm has a market cap of $98.24 billion, a P/E ratio of -80.78 and a beta of 1.35.

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

Insider Buying and Selling at Snowflake

In related news, Director Michael L. Speiser sold 840 shares of the stock in a transaction dated Monday, July 6th. The shares were sold at an average price of $257.91, for a total value of $216,644.40. Following the completion of the transaction, the director owned 26,876 shares of the company's stock, valued at approximately $6,931,589.16. This trade represents a 3.03% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. 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 stock was sold at an average price of $255.11, for a total value of $87,502.73. Following the completion of the transaction, the director owned 5,060 shares of the company's stock, valued at approximately $1,290,856.60. This represents a 6.35% 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 a total of 2,102,015 shares of company stock valued at $504,063,952 over the last quarter. 4.80% of the stock is owned by corporate insiders.

Institutional Trading of Snowflake

Hedge funds and other institutional investors have recently bought and sold shares of the stock. Kemnay Advisory Services Inc. purchased a new position in Snowflake during the fourth quarter worth $28,000. Greenline Wealth Management LLC purchased a new stake in shares of Snowflake in the fourth quarter valued at $29,000. Physician Wealth Advisors Inc. raised its stake in shares of Snowflake by 56.0% in the fourth quarter. Physician Wealth Advisors Inc. now owns 142 shares of the company's stock valued at $31,000 after acquiring an additional 51 shares during the period. MV Capital Management Inc. bought a new stake in shares of Snowflake in the 4th quarter worth about $32,000. Finally, HHM Wealth Advisors LLC lifted its holdings in shares of Snowflake by 50.0% in the 4th quarter. HHM Wealth Advisors LLC now owns 150 shares of the company's stock worth $33,000 after acquiring an additional 50 shares during the last quarter. Hedge funds and other institutional investors own 65.10% of the company's stock.

About Snowflake

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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