Snowflake (NYSE:SNOW) Shares Up 7.1% - What's Next?

Key Points

• Snowflake shares jumped 7.1% on Monday to about $129.71, trading roughly 5.10 million shares—about 19% below its average daily volume.
• The company beat the quarter with $0.32 EPS (vs. $0.27 est.) and $1.28B revenue (+30.1% YoY), but remains unprofitable with a -28.43% net margin and -50.61% ROE.
• Analysts maintain a consensus of “Moderate Buy” with an average target of $249.62 despite recent price-target cuts, and insiders have been net sellers (notably Frank Slootman’s 200,000‑share sale; ~594,313 insider shares sold in 90 days).

Snowflake Inc. (NYSE:SNOW - Get Free Report) shares were up 7.1% on Monday . The company traded as high as $129.44 and last traded at $129.71. Approximately 5,096,859 shares traded hands during mid-day trading, a decline of 19% from the average daily volume of 6,330,603 shares. The stock had previously closed at $121.11.

Analyst Ratings Changes

Several equities research analysts have recently issued reports on the stock. Argus raised shares of Snowflake from a "hold" rating to a "buy" rating and set a $300.00 price objective for the company in a research report on Thursday, January 8th. Wells Fargo & Company reduced their target price on shares of Snowflake from $290.00 to $210.00 and set an "overweight" rating for the company in a research note on Thursday, February 26th. KeyCorp lowered their target price on Snowflake from $285.00 to $235.00 and set an "overweight" rating for the company in a report on Thursday, February 19th. Barclays dropped their price target on Snowflake from $204.00 to $192.00 and set an "equal weight" rating on the stock in a research note on Thursday, February 26th. Finally, TD Cowen cut their price target on Snowflake from $270.00 to $255.00 and set a "buy" rating on the stock in a report on Thursday, February 26th. One investment analyst has rated the stock with a Strong Buy rating, thirty-three have assigned a Buy rating, five have issued a Hold rating and two have assigned a Sell rating to the company. According to data from MarketBeat.com, Snowflake has a consensus rating of "Moderate Buy" and an average target price of $249.62.

Snowflake Stock Up 9.2%

The company has a current ratio of 1.30, a quick ratio of 1.30 and a debt-to-equity ratio of 1.18. The firm's 50 day simple moving average is $167.13 and its 200-day simple moving average is $211.65. The stock has a market capitalization of $45.72 billion, a price-to-earnings ratio of -33.50 and a beta of 1.23.

Snowflake (NYSE:SNOW - Get Free Report) last posted its quarterly earnings data on Wednesday, February 25th. The company reported $0.32 EPS for the quarter, topping analysts' consensus estimates of $0.27 by $0.05. The company had revenue of $1.28 billion during the quarter, compared to the consensus estimate of $1.25 billion. Snowflake had a negative net margin of 28.43% and a negative return on equity of 50.61%. The company's quarterly revenue was up 30.1% on a year-over-year basis. During the same period in the prior year, the business posted $0.30 EPS. Equities analysts expect that Snowflake Inc. will post -2.36 earnings per share for the current fiscal year.

Insider Activity at Snowflake

In other news, Director Frank Slootman sold 200,000 shares of the company's stock in a transaction that occurred on Tuesday, January 20th. The stock was sold at an average price of $206.77, for a total transaction of $41,354,000.00. Following the sale, the director owned 50,329 shares in the company, valued at $10,406,527.33. This represents a 79.89% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this link. Also, EVP Christian Kleinerman sold 10,000 shares of the business's stock in a transaction that occurred on Monday, February 2nd. The stock was sold at an average price of $197.09, for a total value of $1,970,900.00. Following the transaction, the executive vice president directly owned 461,351 shares in the company, valued at approximately $90,927,668.59. This trade represents a 2.12% decrease in their position. The SEC filing for this sale provides additional information. Over the last ninety days, insiders sold 594,313 shares of company stock valued at $108,831,780. Insiders own 6.80% of the company's stock.

Institutional Inflows and Outflows

A number of institutional investors have recently made changes to their positions in SNOW. Grey Fox Wealth Advisors LLC bought a new position in Snowflake during the third quarter worth $25,000. Tripletail Wealth Management LLC bought a new position in shares of Snowflake in the third quarter valued at about $28,000. Kemnay Advisory Services Inc. acquired a new stake in shares of Snowflake during the 4th quarter worth about $28,000. Greenline Wealth Management LLC acquired a new stake in shares of Snowflake during the 4th quarter worth about $29,000. Finally, SJS Investment Consulting Inc. boosted its holdings in shares of Snowflake by 4,333.3% during the 3rd quarter. SJS Investment Consulting Inc. now owns 133 shares of the company's stock worth $30,000 after buying an additional 130 shares during the period. 65.10% of the stock is owned by institutional investors and hedge funds.

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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