Snowflake (NYSE:SNOW) Trading Down 4.6% - Should You Sell?

Key Points

• Snowflake Inc. shares fell by 4.6% to last trade at $218.84, with a decline in trading volume noted compared to average levels.
• Analysts have raised price targets for Snowflake, with a consensus target of $255.53 and a majority rating of "Moderate Buy" among equity analysts.
• Insider activities showed significant selling, including Director Frank Slootman selling over 710,000 shares for more than $163 million, indicating a potential decrease of over 81% in his holdings.

Shares of Snowflake Inc. (NYSE:SNOW - Get Free Report) were down 4.6% on Thursday . The stock traded as low as $215.05 and last traded at $218.84. Approximately 4,897,149 shares were traded during mid-day trading, a decline of 9% from the average daily volume of 5,353,369 shares. The stock had previously closed at $229.33.

Wall Street Analysts Forecast Growth

Several equities research analysts have recently weighed in on SNOW shares. Sanford C. Bernstein increased their price objective on Snowflake from $191.00 to $221.00 and gave the company a "market perform" rating in a report on Thursday, August 28th. Robert W. Baird increased their price target on Snowflake from $215.00 to $260.00 and gave the stock an "outperform" rating in a report on Thursday, August 28th. JPMorgan Chase & Co. lifted their price objective on shares of Snowflake from $225.00 to $255.00 and gave the company an "overweight" rating in a research report on Thursday, August 28th. JMP Securities reiterated a "market outperform" rating and issued a $260.00 price objective on shares of Snowflake in a research report on Tuesday, August 26th. Finally, Guggenheim reiterated a "neutral" rating on shares of Snowflake in a research report on Thursday, August 28th. Two investment analysts have rated the stock with a Strong Buy rating, thirty-six have assigned a Buy rating, four have assigned a Hold rating and two have given a Sell rating to the company's stock. According to data from MarketBeat.com, Snowflake presently has a consensus rating of "Moderate Buy" and a consensus price target of $255.53.

Snowflake Trading Down 3.2%

The company has a quick ratio of 1.58, a current ratio of 1.58 and a debt-to-equity ratio of 0.94. The business has a fifty day simple moving average of $212.27 and a 200 day simple moving average of $186.83. The company has a market cap of $74.13 billion, a price-to-earnings ratio of -53.50 and a beta of 1.22.

Snowflake (NYSE:SNOW - Get Free Report) last released its quarterly earnings results on Wednesday, August 27th. The company reported $0.35 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.27 by $0.08. The business had revenue of $1.14 billion during the quarter, compared to the consensus estimate of $1.09 billion. Snowflake had a negative return on equity of 41.42% and a negative net margin of 33.53%.The business's revenue was up 31.8% on a year-over-year basis. During the same quarter in the previous year, the company posted $0.18 EPS. On average, equities analysts anticipate that Snowflake Inc. will post -2.36 EPS for the current fiscal year.

Insider Activity

In other news, Director Frank Slootman sold 710,083 shares of Snowflake stock in a transaction on Thursday, August 28th. The stock was 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 filing with the SEC, which is available through this hyperlink. Over the last three months, insiders sold 3,216,909 shares of company stock worth $717,287,181. Insiders own 6.80% of the company's stock.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently made changes to their positions in SNOW. Goldman Sachs Group Inc. raised its stake in Snowflake by 22.2% in the 1st quarter. Goldman Sachs Group Inc. now owns 3,587,114 shares of the company's stock valued at $524,293,000 after purchasing an additional 650,775 shares during the last quarter. CenterBook Partners LP acquired a new position in Snowflake in the 1st quarter valued at about $2,381,000. Berkshire Capital Holdings Inc. raised its stake in Snowflake by 71,500.0% in the 1st quarter. Berkshire Capital Holdings Inc. now owns 7,160 shares of the company's stock valued at $1,047,000 after purchasing an additional 7,150 shares during the last quarter. Lyell Wealth Management LP raised its stake in Snowflake by 5.1% in the 1st quarter. Lyell Wealth Management LP now owns 60,685 shares of the company's stock valued at $8,870,000 after purchasing an additional 2,955 shares during the last quarter. Finally, ORG Wealth Partners LLC acquired a new position in Snowflake in the 1st quarter valued at about $898,000. Institutional investors and hedge funds own 65.10% of the company's stock.

About Snowflake

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.

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