Snowflake (NYSE:SNOW) Downgraded to Strong Sell Rating by Zacks Research

Zacks Research cut shares of Snowflake (NYSE:SNOW) from a hold rating to a strong sell rating in a report issued on Tuesday,Zacks.com reports.

Several other research analysts also recently issued reports on the stock. Mizuho lifted their price objective on shares of Snowflake from $260.00 to $285.00 and gave the company an “outperform” rating in a research note on Monday, November 17th. KeyCorp lifted their target price on Snowflake from $275.00 to $285.00 and gave the company an “overweight” rating in a research note on Thursday, December 4th. Sanford C. Bernstein restated a “market perform” rating and issued a $237.00 target price on shares of Snowflake in a research note on Thursday, December 4th. Royal Bank Of Canada reaffirmed an “outperform” rating on shares of Snowflake in a report on Thursday, December 4th. Finally, Weiss Ratings restated a “sell (d-)” rating on shares of Snowflake in a research report on Wednesday, January 21st. Two research analysts have rated the stock with a Strong Buy rating, thirty-four have assigned a Buy rating, four have issued a Hold rating and four have given a Sell rating to the company’s stock. According to MarketBeat, Snowflake currently has a consensus rating of “Moderate Buy” and a consensus target price of $275.58.

Snowflake Stock Down 5.3%

Shares of SNOW traded down $8.74 during mid-day trading on Tuesday, reaching $156.55. The company’s stock had a trading volume of 7,841,643 shares, compared to its average volume of 5,565,126. Snowflake has a 12-month low of $120.10 and a 12-month high of $280.67. The stock has a market cap of $53.57 billion, a PE ratio of -38.75 and a beta of 1.14. The company has a debt-to-equity ratio of 1.07, a current ratio of 1.37 and a quick ratio of 1.37. The company’s 50 day moving average is $219.07 and its 200 day moving average is $227.23.

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

Insider Activity at Snowflake

In related news, EVP Christian Kleinerman sold 10,000 shares of the stock in a transaction on Monday, December 1st. The stock was sold at an average price of $249.53, for a total value of $2,495,300.00. Following the completion of the sale, the executive vice president directly owned 512,450 shares in the company, valued at approximately $127,871,648.50. This represents a 1.91% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, SVP Vivek Raghunathan sold 11,801 shares of the business’s stock in a transaction dated Wednesday, December 31st. The stock was sold at an average price of $220.44, for a total value of $2,601,412.44. Following the transaction, the senior vice president owned 218,020 shares in the company, valued at approximately $48,060,328.80. This represents a 5.13% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 613,681 shares of company stock worth $135,245,745 in the last 90 days. Company insiders own 6.80% of the company’s stock.

Hedge Funds Weigh In On Snowflake

A number of institutional investors and hedge funds have recently bought and sold shares of SNOW. Trust Co. of Toledo NA OH acquired a new position in shares of Snowflake in the second quarter worth about $25,000. Avion Wealth grew its position in shares of Snowflake by 76.6% during the 2nd quarter. Avion Wealth now owns 113 shares of the company’s stock valued at $25,000 after buying an additional 49 shares during the last quarter. Grey Fox Wealth Advisors LLC acquired a new position in Snowflake in the third quarter valued at approximately $25,000. Tripletail Wealth Management LLC bought a new position in shares of Snowflake during the third quarter valued at approximately $28,000. Finally, Rossby Financial LCC raised its position in shares of Snowflake by 4,233.3% during the 2nd quarter. Rossby Financial LCC now owns 130 shares of the company’s stock worth $29,000 after purchasing an additional 127 shares during the period. Hedge funds and other institutional investors own 65.10% of the company’s stock.

Snowflake News Summary

Here are the key news stories impacting Snowflake this week:

• Positive Sentiment: Snowflake announced a multi‑year, roughly $200M partnership with OpenAI to embed advanced models into Snowflake’s platform — a revenue opportunity if customers run models on Snowflake data and pay for compute/consumption. OpenAI partnership
• Positive Sentiment: Enterprise adoption example — United Rentals has rolled out a Snowflake‑built Business Intelligence AI agent across 1,600+ branches, showing near‑term real customer use of Snowflake Intelligence that could increase consumption. United Rentals deployment
• Positive Sentiment: New AI product moves (Cortex Code, Semantic View Autopilot, Postgres integrations) broaden use cases and reduce friction for customers — strategically supportive of longer‑term consumption growth if execution follows through. Fool on Snowflake product momentum
• Neutral Sentiment: Market commentary is mixed: analysts and stories acknowledge the strategic logic of model partnerships but emphasize investors want clear evidence of profitable consumption growth rather than press releases. Market analysis on OpenAI deal
• Negative Sentiment: Zacks Research downgraded Snowflake from “hold” to “strong sell” — a fresh sell‑side hit that can accelerate outflows and push momentum traders to reduce exposure. Zacks downgrade
• Negative Sentiment: Johnson Fistel announced an investigation into whether Snowflake or its officers complied with securities laws — legal/settlement risk increases uncertainty and can pressure the stock until resolved. Johnson Fistel investigation notice
• Negative Sentiment: Insider selling: EVP Christian Kleinerman disclosed a sale of 10,000 shares — insider sales can be interpreted as added near‑term supply and raise short‑term concern even if not uncommon. SEC Form 4 — Kleinerman sale
• Negative Sentiment: Overall price action: analysts and reports note SNOW is falling more than the broader market amid profit‑taking and skepticism about near‑term margins if customers run large models — that dynamic is amplifying the move lower. Zacks on SNOW downside

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.