Snowflake (NYSE:SNOW) Shares Gap Down – Here’s Why

Snowflake Inc. (NYSE:SNOW)’s share price gapped down before the market opened on Thursday . The stock had previously closed at $216.00, but opened at $205.23. Snowflake shares last traded at $197.9680, with a volume of 3,042,693 shares traded.

Wall Street Analyst Weigh In

A number of analysts have recently issued reports on the company. Wedbush reaffirmed an “outperform” rating and issued a $270.00 price objective on shares of Snowflake in a research report on Thursday, December 4th. Mizuho raised their price target on Snowflake from $260.00 to $285.00 and gave the company an “outperform” rating in a report on Monday, November 17th. Scotiabank reiterated an “outperform” rating on shares of Snowflake in a report on Thursday, December 4th. Rosenblatt Securities increased their price objective on shares of Snowflake from $250.00 to $275.00 and gave the company a “buy” rating in a research report on Monday, December 1st. Finally, BTIG Research reaffirmed a “buy” rating and set a $312.00 target price on shares of Snowflake in a report on Thursday, December 4th. Two research analysts have rated the stock with a Strong Buy rating, thirty-four have given a Buy rating, four have given a Hold rating and three have given a Sell rating to the company. According to MarketBeat, Snowflake currently has an average rating of “Moderate Buy” and a consensus target price of $275.58.

Snowflake Stock Down 8.4%

The company has a market cap of $67.72 billion, a P/E ratio of -49.22 and a beta of 1.14. The stock has a 50-day moving average of $225.08 and a 200 day moving average of $228.25. The company has a debt-to-equity ratio of 1.07, a current ratio of 1.37 and a quick ratio of 1.37.

Snowflake (NYSE:SNOW) last announced its quarterly earnings data on Wednesday, December 3rd. The company reported $0.35 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.31 by $0.04. The firm had revenue of $1.21 billion for the quarter, compared to the consensus estimate of $1.18 billion. Snowflake had a negative net margin of 30.76% and a negative return on equity of 45.91%. The business’s revenue for the quarter was up 28.7% on a year-over-year basis. During the same period in the prior year, the company posted $0.20 earnings per share. Research analysts anticipate that Snowflake Inc. will post -2.36 earnings per share for the current year.

Insider Activity

In related news, Director Frank Slootman sold 200,000 shares of the company’s stock in a transaction on Thursday, December 18th. The stock was sold at an average price of $221.83, for a total transaction of $44,366,000.00. Following the completion of the sale, the director directly owned 50,329 shares in the company, valued at $11,164,482.07. This represents a 79.89% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, EVP Christian Kleinerman sold 10,000 shares of Snowflake stock in a transaction dated Monday, December 1st. The shares were sold at an average price of $249.53, for a total value of $2,495,300.00. Following the completion of the transaction, the executive vice president owned 512,450 shares in the company, valued at approximately $127,871,648.50. This represents a 1.91% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold 618,681 shares of company stock valued at $137,427,145 in the last three months. Company insiders own 6.80% of the company’s stock.

Institutional Investors Weigh In On Snowflake

A number of hedge funds have recently made changes to their positions in SNOW. Vanguard Group Inc. lifted its stake in Snowflake by 5.1% in the 4th quarter. Vanguard Group Inc. now owns 30,095,687 shares of the company’s stock valued at $6,601,790,000 after purchasing an additional 1,448,094 shares during the last quarter. Jennison Associates LLC lifted its stake in shares of Snowflake by 13.5% in the 3rd quarter. Jennison Associates LLC now owns 9,083,889 shares of the company’s stock valued at $2,048,871,000 after acquiring an additional 1,083,222 shares during the last quarter. State Street Corp boosted its holdings in shares of Snowflake by 1.4% during the 2nd quarter. State Street Corp now owns 6,887,073 shares of the company’s stock valued at $1,541,120,000 after acquiring an additional 94,293 shares in the last quarter. Artisan Partners Limited Partnership grew its position in Snowflake by 15.2% during the 2nd quarter. Artisan Partners Limited Partnership now owns 4,951,715 shares of the company’s stock worth $1,108,045,000 after acquiring an additional 652,485 shares during the last quarter. Finally, Geode Capital Management LLC grew its position in Snowflake by 3.1% during the 2nd quarter. Geode Capital Management LLC now owns 4,424,120 shares of the company’s stock worth $986,057,000 after acquiring an additional 133,059 shares during the last quarter. 65.10% of the stock is currently 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.