Snowflake faced a mix of analyst moves and notable insider activity as its stock traded near the mid-$190s on Wednesday. UBS Group cut its price objective on Snowflake to 250 from 265, while keeping a Buy rating on the cloud data platform provider.
Other notable analyst notes on Snowflake:
– Stifel Nicolaus lifted Snowflake’s price target to 220 and reiterated a Buy rating.
– KeyCorp remained overweight on Snowflake.
– Sanford C. Bernstein kept a Market Perform rating.
– Royal Bank Of Canada raised its target to 250 and reiterated an Outperform rating.
– HSBC Global Research moved Snowflake to a Strong Sell from a Hold.
Market consensus remains positive but varied: MarketBeat shows a Moderate Buy on Snowflake with an average target price around 226.32.
Trading and near-term dynamics
Snowflake slipped about 0.5% on the day, trading around 198.04 after a session in which about 2.38 million shares changed hands, well below its 5.04 million average volume. The stock’s technical picture shows a 50-day moving average near 212.50 and a 200-day moving average around 184.56. Over the past year, Snowflake traded in a range from a low near 107.13 to a high around 229.27, with a current market capitalization in the vicinity of 66 billion dollars. The company carries a negative earnings multiple (P/E), reflecting high growth expectations and near-term profitability pressures, a beta close to 1.22, and a debt-to-equity ratio near 0.94. Liquidity metrics are modestly healthy, with quick and current ratios around 1.58.
Earnings and outlook
Snowflake last reported on May 21, posting quarterly revenue of about 1.04 billion dollars, ahead of consensus estimates of roughly 1.01 billion. Earnings per share were 0.24, beating expectations of 0.22. The quarter showed a continued pattern of revenue growth, up about 25.8% year over year, but the company also posted a negative net margin (around -36%), and an ROE that remained negative. For the current year, the Street’s consensus calls for an EPS of roughly -2.36, underscoring ongoing profitability challenges despite revenue expansion.
Insider activity
Two senior Snowflake insiders turned over substantial portions of their holdings in late May and June. Director Frank Slootman sold about 424,852 shares at an average price of 219.35, leaving him with roughly 165,507 shares. Chief Financial Officer Michael Scarpelli sold around 400,000 shares at an average price of 205.36, reducing his stake to about 292,610 shares. Collectively, insiders have sold more than 3 million Snowflake shares in the last 90 days, representing a sizable portion of ownership, with insiders overall owning around 6.8% of the stock.
Hedge funds and institutional ownership
Several large investors have adjusted their Snowflake positions in the current quarter. Small new positions were noted in some cases, while several funds increased exposure modestly. Overall institutional ownership remains a key driver, with about 65% of Snowflake’s stock held by institutions.
Company profile
Snowflake offers a cloud-based data platform designed to help organizations consolidate data, run queries, and build data-driven applications. Its Data Cloud aims to deliver a single source of truth, enabling customers to derive insights and deploy AI-driven capabilities across diverse data sets and use cases.
Bottom line
Snowflake continues to attract a broad mix of ratings and price targets from major banks, with UBS maintaining a Buy while trimming its target, and several other firms either lifting targets or reaffirming favorable ratings. The stock’s pullback from recent highs and notable insider selling present a cautious near-term backdrop, but the diversified demand for Snowflake’s data cloud and continued revenue growth signal longer-term potential. Investors will likely weigh the mix of upgrades against the profitability headwinds and the stock’s rich valuation as they monitor upcoming quarterly results and guidance.
Summary
Snowflake is facing a spectrum of analyst views after UBS trimmed its target to 250 while endorsing a Buy. The stock has pulled back from recent levels, with insider selling signaling caution, yet several banks remain constructive, and the Street’s consensus leans toward a Moderate Buy. The company’s strong revenue growth contrasts with ongoing profitability challenges, setting up a watchful period ahead as results and guidance roll in.
If you’re considering investment, keep an eye on how Snowflake’s Data Cloud scales, how AI-related demand evolves, and how the company improves margins and profitability over the coming quarters. Positive long-term momentum could hinge on continued customer adoption and expansion within enterprise workloads.