Shares of Snowflake Inc. (NYSE:SNOW) experienced a 2.4% decline on Tuesday, trading as low as $238.00 before closing at $241.39. The trading session saw approximately 4,079,361 shares exchange hands, reflecting a notable 23% drop from the stock’s average daily trading volume of 5,297,191 shares. The previous day’s close stood at $247.27.
Recent analyst activity has been focused on Snowflake, with several firms issuing positive ratings. Citigroup maintained an “outperform” rating on August 28, while Jefferies Financial Group raised its price target from $250.00 to $270.00, labeling the stock as a “buy.” Cowen also reaffirmed a “buy” rating on the same day. In another show of confidence, Bank of America upgraded Snowflake from “neutral” to “buy,” increasing its target price from $220.00 to $240.00. Canaccord Genuity raised its price objective to $260.00, branding the stock as a “buy.” Overall, the consensus among analysts includes two ratings for Strong Buy, thirty-six for Buy, three Hold ratings, and three Sell ratings, giving Snowflake an average rating of “Moderate Buy” with a target price of $256.18.
For context, Snowflake’s stock has a 50-day moving average of $219.41 and a 200-day average of $199.79. The company’s market capitalization is currently at $81.78 billion, with a price-to-earnings ratio of -58.17 and a beta of 1.21. The company reported earnings on August 27, showing an earnings per share of $0.35, exceeding estimates of $0.27, and revenue of $1.14 billion, higher than the predicted $1.09 billion. This represented a 31.8% increase year-over-year in revenue, indicating strong business growth.
Insider trading reports highlighted some recent actions, with SVP Vivek Raghunathan selling 11,801 shares at an average price of $223.22, and EVP Christian Kleinerman selling 10,000 shares at an average price of $233.50. Despite these sales, company insiders still hold 6.80% of Snowflake’s stock.
On the investment front, several institutional investors have recently adjusted their holdings in Snowflake, with notable increases in positions by firms like Avion Wealth and CVA Family Office. Approximately 65.10% of the stock is owned by institutional investors and hedge funds.
Snowflake Inc. offers a robust cloud-based data platform aimed at helping organizations consolidate data, gain crucial business insights, and leverage artificial intelligence for problem-solving.
While Snowflake’s stock faced a setback in trading, its recent earnings results and positive analyst ratings suggest a resilient position within the market. This combination of solid financial performance and a supportive analyst outlook may provide a foundation for growth moving forward.