Snowflake (NYSE:SNOW) Raised to "Strong-Buy" at HSBC

Key Points

• HSBC upgraded Snowflake to “strong-buy”, adding to a generally bullish analyst backdrop. The stock now has two Strong Buy ratings, 34 Buy ratings, and a consensus price target of $284.38.
• Snowflake shares rose 7% after the report, with the stock opening at $255.94 and trading near its 52-week high of $280.67.
• Recent quarterly results beat expectations, as Snowflake reported EPS of $0.39 on revenue of $1.39 billion, both above estimates, while revenue grew 33.5% year over year.

Snowflake (NYSE:SNOW - Get Free Report) was upgraded by equities researchers at HSBC to a "strong-buy" rating in a report issued on Friday,Zacks.com reports.

A number of other research firms have also recently commented on SNOW. Citizens Jmp reiterated a "market outperform" rating and set a $325.00 price objective on shares of Snowflake in a research report on Tuesday, May 19th. Zacks Research upgraded Snowflake from a "strong sell" rating to a "hold" rating in a research report on Wednesday, March 4th. JPMorgan Chase & Co. lifted their price objective on Snowflake from $245.00 to $285.00 and gave the stock an "overweight" rating in a research report on Thursday. Wells Fargo & Company lifted their price objective on Snowflake from $210.00 to $300.00 and gave the stock an "overweight" rating in a research report on Thursday. Finally, Rosenblatt Securities lifted their price objective on Snowflake from $275.00 to $285.00 and gave the stock a "buy" rating in a research report on Thursday. Two analysts have rated the stock with a Strong Buy rating, thirty-four have issued a Buy rating, five have assigned a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, Snowflake presently has an average rating of "Moderate Buy" and a consensus price target of $284.38.

Snowflake Trading Up 7.0%

NYSE:SNOW opened at $255.94 on Friday. The company has a market capitalization of $88.48 billion, a PE ratio of -72.71 and a beta of 1.08. The company has a quick ratio of 1.30, a current ratio of 1.30 and a debt-to-equity ratio of 1.18. Snowflake has a 52-week low of $118.30 and a 52-week high of $280.67. The stock has a fifty day simple moving average of $156.69 and a 200-day simple moving average of $190.95.

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, topping the consensus estimate of $0.32 by $0.07. The business had revenue of $1.39 billion during the quarter, compared to the consensus estimate of $1.32 billion. Snowflake had a negative return on equity of 49.29% and a negative net margin of 23.79%.The business's revenue was up 33.5% on a year-over-year basis. During the same quarter in the previous year, the company posted $0.24 EPS. On average, equities research analysts expect that Snowflake will post -2.16 earnings per share for the current fiscal year.

Insider Transactions at Snowflake

In other news, EVP Christian Kleinerman sold 5,000 shares of the business's stock in a transaction dated Thursday, May 28th. The stock was sold at an average price of $236.77, for a total transaction of $1,183,850.00. Following the completion of the sale, the executive vice president owned 528,494 shares in the company, valued at approximately $125,131,524.38. The trade was a 0.94% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Frank Slootman sold 400,000 shares of the business's stock in a transaction dated Thursday, May 28th. The stock was sold at an average price of $233.42, for a total value of $93,368,000.00. Following the sale, the director owned 38,046 shares of the company's stock, valued at $8,880,697.32. The trade was a 91.31% 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. Insiders have sold a total of 889,413 shares of company stock worth $176,342,125 over the last 90 days. Company insiders own 4.80% of the company's stock.

Institutional Trading of Snowflake

Institutional investors have recently modified their holdings of the company. Brighton Jones LLC lifted its position in Snowflake by 90.0% during the 4th quarter. Brighton Jones LLC now owns 61,885 shares of the company's stock worth $9,556,000 after acquiring an additional 29,320 shares in the last quarter. Intech Investment Management LLC lifted its position in Snowflake by 24.0% during the 1st quarter. Intech Investment Management LLC now owns 11,202 shares of the company's stock worth $1,637,000 after acquiring an additional 2,167 shares in the last quarter. Geneos Wealth Management Inc. lifted its position in Snowflake by 29.7% during the 1st quarter. Geneos Wealth Management Inc. now owns 319 shares of the company's stock worth $47,000 after acquiring an additional 73 shares in the last quarter. Flow Traders U.S. LLC acquired a new position in Snowflake during the 2nd quarter worth approximately $221,000. Finally, The Manufacturers Life Insurance Company lifted its position in Snowflake by 7.2% during the 2nd quarter. The Manufacturers Life Insurance Company now owns 22,603 shares of the company's stock worth $5,055,000 after acquiring an additional 1,521 shares in the last quarter. Hedge funds and other institutional investors own 65.10% of the company's stock.

Key Headlines Impacting Snowflake

Here are the key news stories impacting Snowflake this week:

• Positive Sentiment: Snowflake beat Q1 expectations, raised product revenue guidance, and pointed to stronger demand for its AI offerings, reinforcing the growth story. Article Title
• Positive Sentiment: The company’s $6 billion AWS partnership is being viewed as a major AI infrastructure catalyst that could deepen enterprise adoption. Article Title
• Positive Sentiment: Analysts raised price targets and maintained bullish ratings after the earnings report, signaling growing confidence in SNOW’s upside. Article Title
• Positive Sentiment: Snowflake is being repriced as a key “agentic AI” data platform, with investors seeing it as foundational infrastructure for enterprise AI workflows. Article Title
• Neutral Sentiment: Director Frank Slootman disclosed a pre-arranged share sale under a 10b5-1 trading plan, which is noteworthy but not necessarily a negative signal on the business. Article Title

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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