Snowflake (NYSE:SNOW) Trading Down 1.8% – Should You Sell?

Shares of Snowflake Inc. (NYSE:SNOW) traded down 1.8% on Monday . The company traded as low as $147.24 and last traded at $149.1460. 5,658,345 shares were traded during trading, a decline of 5% from the average session volume of 5,979,110 shares. The stock had previously closed at $151.85.

Key Stories Impacting Snowflake

Here are the key news stories impacting Snowflake this week:

• Positive Sentiment: Analyst and product momentum: Benchmark initiated coverage with a Buy and $190 target, highlighting Snowflake’s AI Data Cloud positioning; CEO Sridhar Ramaswamy discussed Project SnowWork and outcome‑driven AI agents as a product differentiator, supporting the growth case. Benchmark initiation and AI thesis CEO interview on Project SnowWork
• Neutral Sentiment: Industry and coverage notes: Zacks and other outlets highlight expanding AI workloads and increased investor attention, which could support long‑term enterprise traction but have not yet translated into consistent share strength. Zacks on AI workload expansion Zacks attention/overview
• Negative Sentiment: Legal overhang: Multiple law firms have filed or are soliciting lead‑plaintiff roles in securities class actions alleging Snowflake misled investors about product efficiency, usage/revenue impacts, and risk disclosures covering June 27, 2023–Feb 28, 2024; reminders and notices from Rosen, Schall, Levi & Korsinsky, DJS and others increase litigation visibility and potential expense/distraction. Levi & Korsinsky filing notice Schall Law Firm notice DJS Law Group notice Coverage on lawsuits and alleged disclosures

Analyst Ratings Changes

SNOW has been the subject of a number of recent analyst reports. DA Davidson lowered their target price on shares of Snowflake from $300.00 to $250.00 and set a “buy” rating for the company in a research note on Thursday, February 26th. Raymond James Financial reissued an “outperform” rating on shares of Snowflake in a research note on Monday, February 2nd. Zacks Research upgraded Snowflake from a “strong sell” rating to a “hold” rating in a report on Wednesday, March 4th. Royal Bank Of Canada set a $245.00 target price on Snowflake in a report on Wednesday, February 11th. Finally, Truist Financial cut their price target on shares of Snowflake from $270.00 to $240.00 and set a “buy” rating on the stock in a research note on Thursday, February 26th. One analyst has rated the stock with a Strong Buy rating, thirty-three have issued a Buy rating, five have issued a Hold rating and two have issued a Sell rating to the company. Based on data from MarketBeat.com, Snowflake has a consensus rating of “Moderate Buy” and an average price target of $249.62.

Snowflake Price Performance

The company has a market capitalization of $51.56 billion, a price-to-earnings ratio of -37.76 and a beta of 1.23. The company has a debt-to-equity ratio of 1.18, a quick ratio of 1.30 and a current ratio of 1.30. The company has a fifty day simple moving average of $173.75 and a two-hundred day simple moving average of $214.65.

Snowflake (NYSE:SNOW) last released its earnings results on Wednesday, February 25th. The company reported $0.32 earnings per share for the quarter, topping the consensus estimate of $0.27 by $0.05. Snowflake had a negative return on equity of 50.61% and a negative net margin of 28.43%.The firm had revenue of $1.28 billion for the quarter, compared to the consensus estimate of $1.25 billion. During the same period in the prior year, the business posted $0.30 earnings per share. The firm’s revenue for the quarter was up 30.1% compared to the same quarter last year. As a group, research analysts anticipate that Snowflake Inc. will post -2.36 earnings per share for the current year.

Insider Activity at Snowflake

In related news, EVP Christian Kleinerman sold 10,000 shares of Snowflake stock in a transaction 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 owned 461,351 shares in the company, valued at approximately $90,927,668.59. This trade represents a 2.12% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, SVP Vivek Raghunathan sold 3,876 shares of the company’s stock in a transaction dated Wednesday, April 1st. The stock was sold at an average price of $152.80, for a total value of $592,252.80. Following the sale, the senior vice president owned 273,323 shares of the company’s stock, valued at $41,763,754.40. This represents a 1.40% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 543,572 shares of company stock worth $101,311,456 in the last 90 days. Company insiders own 6.80% of the company’s stock.

Institutional Trading of Snowflake

Several large investors have recently added to or reduced their stakes in SNOW. Grey Fox Wealth Advisors LLC purchased a new stake in shares of Snowflake during the 3rd quarter valued at about $25,000. Tripletail Wealth Management LLC purchased a new stake in shares of Snowflake during the third quarter valued at approximately $28,000. Kemnay Advisory Services Inc. acquired a new position in shares of Snowflake during the fourth quarter worth $28,000. Greenline Wealth Management LLC purchased a new position in shares of Snowflake in the fourth quarter valued at $29,000. Finally, SJS Investment Consulting Inc. lifted its holdings in Snowflake by 4,333.3% in 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 in 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.