Snowflake (NYSE:SNOW) Shares Down 7.7% – Should You Sell?

Snowflake Inc. (NYSE:SNOW)’s stock price dropped 7.7% during trading on Thursday . The company traded as low as $196.79 and last traded at $199.3210. Approximately 7,977,017 shares traded hands during trading, an increase of 80% from the average daily volume of 4,426,650 shares. The stock had previously closed at $216.00.

Analyst Ratings Changes

A number of equities research analysts recently issued reports on the company. UBS Group reissued a “buy” rating on shares of Snowflake in a research report on Thursday, December 4th. Citigroup decreased their price target on Snowflake from $310.00 to $300.00 and set a “buy” rating on the stock in a research report on Monday, December 8th. Jefferies Financial Group set a $300.00 price objective on shares of Snowflake in a research report on Monday, November 24th. Stifel Nicolaus raised their target price on shares of Snowflake from $260.00 to $280.00 and gave the company a “buy” rating in a report on Thursday, December 4th. Finally, Macquarie upped their price target on shares of Snowflake from $235.00 to $250.00 and gave the stock a “neutral” rating in a report on Thursday, December 4th. Two analysts have rated the stock with a Strong Buy rating, thirty-four have assigned a Buy rating, four have issued a Hold rating and three have issued a Sell rating to the stock. Based on data from MarketBeat, Snowflake currently has an average rating of “Moderate Buy” and a consensus target price of $275.58.

Snowflake Stock Performance

The stock has a market capitalization of $68.21 billion, a price-to-earnings ratio of -49.34 and a beta of 1.14. The company has a current ratio of 1.37, a quick ratio of 1.37 and a debt-to-equity ratio of 1.07. The company’s 50-day simple moving average is $225.08 and its 200-day simple moving average is $228.25.

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

Insider Buying and Selling at Snowflake

In other Snowflake news, EVP Christian Kleinerman sold 10,000 shares of the company’s 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 transaction, the executive vice president owned 512,450 shares in the company, valued at $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 available through the SEC website. Also, Director Michael L. Speiser sold 50,338 shares of the firm’s stock in a transaction that occurred on Friday, December 5th. The stock was sold at an average price of $230.65, for a total transaction of $11,610,459.70. Following the sale, the director owned 32,756 shares of the company’s stock, valued at approximately $7,555,171.40. The trade was a 60.58% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last three months, insiders have sold 618,681 shares of company stock worth $137,427,145. Corporate insiders own 6.80% of the company’s stock.

Institutional Trading of Snowflake

Several institutional investors and hedge funds have recently bought and sold shares of the company. Trust Co. of Toledo NA OH purchased a new stake in Snowflake in the second quarter worth approximately $25,000. Avion Wealth lifted its holdings in shares of Snowflake by 76.6% in the 2nd quarter. Avion Wealth now owns 113 shares of the company’s stock worth $25,000 after acquiring an additional 49 shares during the last quarter. Grey Fox Wealth Advisors LLC purchased a new stake in shares of Snowflake in the 3rd quarter valued at $25,000. Tripletail Wealth Management LLC bought a new position in shares of Snowflake during the 3rd quarter valued at $28,000. Finally, Rossby Financial LCC raised its position in Snowflake by 4,233.3% in 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. 65.10% of the stock is currently owned by hedge funds and other institutional investors.

About Snowflake

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.