Snowflake (NYSE:SNOW) Shares Up 3.7% - Should You Buy?

Key Points

• Snowflake Inc. shares increased by 3.7% to close at $230.40, with trading volume up 44% compared to the average.
• Several analysts have raised their price targets for Snowflake, with estimates ranging from $250 to $275 and a consensus price target of $255.53.
• Snowflake reported $1.14 billion in revenue for the last quarter, exceeding estimates, and a negative net margin of 33.53%.

Snowflake Inc. (NYSE:SNOW - Get Free Report) shares shot up 3.7% on Friday . The stock traded as high as $231.94 and last traded at $230.40. 7,755,837 shares traded hands during trading, an increase of 44% from the average session volume of 5,369,249 shares. The stock had previously closed at $222.11.

Wall Street Analyst Weigh In

Several research firms have weighed in on SNOW. Wedbush lifted their price objective on shares of Snowflake from $230.00 to $250.00 and gave the stock an "outperform" rating in a research report on Thursday, August 28th. JPMorgan Chase & Co. lifted their target price on shares of Snowflake from $225.00 to $255.00 and gave the company an "overweight" rating in a research note on Thursday, August 28th. Cantor Fitzgerald lifted their target price on shares of Snowflake from $242.00 to $275.00 and gave the company an "overweight" rating in a research note on Thursday, August 28th. Morgan Stanley lifted their target price on shares of Snowflake from $262.00 to $272.00 and gave the company an "overweight" rating in a research note on Thursday, August 28th. Finally, Truist Financial lifted their target price on shares of Snowflake from $235.00 to $270.00 and gave the company a "buy" rating in a research note on Thursday, August 28th. Two research analysts have rated the stock with a Strong Buy rating, thirty-six have given a Buy rating, four have assigned a Hold rating and two have issued a Sell rating to the company. Based on data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and a consensus price target of $255.53.

Snowflake Stock Performance

The stock has a market cap of $78.06 billion, a price-to-earnings ratio of -55.52 and a beta of 1.22. The company has a debt-to-equity ratio of 0.96, a quick ratio of 1.48 and a current ratio of 1.48. The stock's 50-day simple moving average is $212.77 and its two-hundred day simple moving average is $190.26.

Snowflake (NYSE:SNOW - Get Free Report) last released its earnings results on Wednesday, August 27th. The company reported $0.35 earnings per share for the quarter, topping analysts' consensus estimates of $0.27 by $0.08. The firm had revenue of $1.14 billion during the quarter, compared to analyst estimates of $1.09 billion. Snowflake had a negative net margin of 33.53% and a negative return on equity of 42.98%. The business's revenue was up 31.8% on a year-over-year basis. During the same quarter in the previous year, the business earned $0.18 EPS. Analysts forecast that Snowflake Inc. will post -2.36 earnings per share for the current year.

Insiders Place Their Bets

In other Snowflake news, Director Frank Slootman sold 710,083 shares of the business's stock in a transaction on Thursday, August 28th. The shares were sold at an average price of $230.47, for a total transaction of $163,652,829.01. Following the completion of the transaction, the director owned 165,507 shares of the company's stock, valued at $38,144,398.29. The trade was a 81.10% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Over the last three months, insiders have sold 3,224,646 shares of company stock worth $720,005,171. 6.80% of the stock is owned by insiders.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently bought and sold shares of SNOW. Capital Advantage Inc. increased its holdings in shares of Snowflake by 1.1% during the 2nd quarter. Capital Advantage Inc. now owns 4,412 shares of the company's stock worth $987,000 after purchasing an additional 48 shares during the period. Wedbush Securities Inc. increased its holdings in shares of Snowflake by 1.3% during the 2nd quarter. Wedbush Securities Inc. now owns 3,717 shares of the company's stock worth $832,000 after purchasing an additional 48 shares during the period. Avion Wealth increased its holdings in shares of Snowflake by 76.6% during the 2nd quarter. Avion Wealth now owns 113 shares of the company's stock worth $25,000 after purchasing an additional 49 shares during the period. Insigneo Advisory Services LLC increased its holdings in shares of Snowflake by 1.3% during the 2nd quarter. Insigneo Advisory Services LLC now owns 4,003 shares of the company's stock worth $896,000 after purchasing an additional 52 shares during the period. Finally, Advyzon Investment Management LLC increased its holdings in shares of Snowflake by 3.8% during the 2nd quarter. Advyzon Investment Management LLC now owns 1,520 shares of the company's stock worth $340,000 after purchasing an additional 55 shares during the period. Institutional investors and hedge funds own 65.10% of the company's stock.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.