Snowflake (NYSE:SNOW) Trading Down 8.7% - Time to Sell?

Key Points

• Snowflake's stock price fell by 8.7% during mid-day trading, reaching a low of $203.73, despite a significant increase in trading volume.
• Analysts have mixed sentiments; while Monness Crespi & Hardt and Cantor Fitzgerald raised their price targets to $245.00 and $242.00 respectively, HSBC downgraded the stock to a "sell" rating.
• Recent earnings results showed a revenue increase of 25.8% year-over-year, with the company reporting $1.04 billion in revenue for the quarter, exceeding analysts' estimates.

Snowflake Inc. (NYSE:SNOW - Get Free Report)'s stock price dropped 8.7% during mid-day trading on Friday . The company traded as low as $203.73 and last traded at $204.02. Approximately 6,380,546 shares changed hands during trading, an increase of 25% from the average daily volume of 5,089,678 shares. The stock had previously closed at $223.50.

Analyst Upgrades and Downgrades

SNOW has been the topic of a number of analyst reports. Monness Crespi & Hardt boosted their price objective on Snowflake from $230.00 to $245.00 and gave the company a "buy" rating in a research note on Thursday, May 22nd. KeyCorp reiterated an "overweight" rating on shares of Snowflake in a report on Wednesday, June 25th. Cantor Fitzgerald increased their target price on Snowflake from $183.00 to $242.00 and gave the company an "overweight" rating in a report on Thursday, May 22nd. HSBC lowered Snowflake from a "hold" rating to a "sell" rating in a research report on Thursday, May 22nd. Finally, Stephens assumed coverage on Snowflake in a research report on Friday, July 18th. They set an "overweight" rating and a $261.00 price target on the stock. Two research analysts have rated the stock with a sell rating, six have assigned a hold rating, thirty-three have assigned a buy rating and three have given a strong buy rating to the company's stock. According to data from MarketBeat, Snowflake has an average rating of "Moderate Buy" and a consensus price target of $226.73.

Snowflake Price Performance

The company's 50-day moving average price is $213.78 and its 200-day moving average price is $182.43. The company has a debt-to-equity ratio of 0.94, a current ratio of 1.58 and a quick ratio of 1.58. The company has a market cap of $68.47 billion, a P/E ratio of -48.71 and a beta of 1.22.

Snowflake (NYSE:SNOW - Get Free Report) last released its earnings results on Wednesday, May 21st. The company reported $0.24 earnings per share for the quarter, beating analysts' consensus estimates of $0.22 by $0.02. Snowflake had a negative net margin of 36.43% and a negative return on equity of 37.75%. The business had revenue of $1.04 billion during the quarter, compared to the consensus estimate of $1.01 billion. During the same quarter last year, the firm earned $0.14 earnings per share. The firm's revenue for the quarter was up 25.8% compared to the same quarter last year. As a group, sell-side analysts predict that Snowflake Inc. will post -2.36 earnings per share for the current fiscal year.

Insider Buying and Selling at Snowflake

In other news, Director Frank Slootman sold 100,483 shares of the company's stock in a transaction on Tuesday, July 8th. The shares were sold at an average price of $223.55, for a total value of $22,462,974.65. Following the sale, the director directly owned 165,507 shares of the company's stock, valued at approximately $36,999,089.85. This represents a 37.78% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. Also, EVP Christian Kleinerman sold 10,000 shares of the company's stock in a transaction on Tuesday, July 1st. The stock was sold at an average price of $218.89, for a total transaction of $2,188,900.00. Following the transaction, the executive vice president owned 547,336 shares in the company, valued at approximately $119,806,377.04. The trade was a 1.79% decrease in their position. The disclosure for this sale can be found here. Over the last 90 days, insiders sold 2,697,855 shares of company stock valued at $586,415,198. 6.80% of the stock is owned by insiders.

Hedge Funds Weigh In On Snowflake

A number of large investors have recently modified their holdings of SNOW. Trust Co. of Toledo NA OH purchased a new stake in Snowflake in the second quarter valued at approximately $25,000. Avion Wealth raised its stake in shares of Snowflake by 76.6% during the second quarter. Avion Wealth now owns 113 shares of the company's stock worth $25,000 after acquiring an additional 49 shares in the last quarter. Opal Wealth Advisors LLC purchased a new position in shares of Snowflake during the first quarter worth approximately $26,000. CVA Family Office LLC increased its stake in shares of Snowflake by 80.0% in the first quarter. CVA Family Office LLC now owns 198 shares of the company's stock worth $29,000 after buying an additional 88 shares during the period. Finally, Rossby Financial LCC increased its stake in shares of Snowflake by 4,233.3% in the second quarter. Rossby Financial LCC now owns 130 shares of the company's stock worth $29,000 after buying an additional 127 shares during the period. 65.10% of the stock is currently owned by institutional investors.

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.

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.