Snowflake (NYSE:SNOW) Trading Down 1.9% – Time to Sell?

Snowflake Inc. (NYSE:SNOW) shares were down 1.9% during trading on Friday . The company traded as low as $330.14 and last traded at $331.8460. Approximately 4,309,302 shares traded hands during mid-day trading, a decline of 36% from the average session volume of 6,726,747 shares. The stock had previously closed at $338.39.

Snowflake News Summary

Here are the key news stories impacting Snowflake this week:

• Positive Sentiment: Snowflake’s product revenue increased 37% in fiscal second quarter, supported by AI adoption, platform consumption and enterprise expansion. The acceleration strengthens the company’s competitive position against larger technology vendors. Snowflake product revenue article
• Positive Sentiment: Upward earnings-estimate revisions and favorable analyst forecasts are supporting the bullish case. The average Wall Street target is approximately $414, while several firms have recently set targets ranging from $440 to $490. Snowflake earnings estimates article
• Positive Sentiment: Recent results provide fundamental support: revenue reached about $1.55 billion, up 35% year over year, and adjusted earnings exceeded expectations. Snowflake’s AI platform is also gaining visibility through new enterprise applications and partnerships.
• Neutral Sentiment: Investor attention has increased sharply, but coverage focused on search interest and analyst targets is not, by itself, a change in the company’s fundamentals. Snowflake investor attention article
• Negative Sentiment: Snowflake reduced its fiscal 2027 non-GAAP product gross-margin guidance to 74%, citing a greater mix of lower-margin AI workloads. Continued AI growth could therefore pressure profitability even as revenue accelerates. Snowflake AI margin article
• Negative Sentiment: Several executives, including Christian Kleinerman, Vivek Raghunathan and Emily Ho, sold shares under pre-arranged plans primarily to cover tax withholding on vested equity awards. The sales are not necessarily discretionary bearish bets, but may add short-term supply and caution.
• Negative Sentiment: After a substantial rally, Snowflake’s valuation remains demanding while the company continues to report losses. That leaves the stock vulnerable to profit-taking if growth, margins or AI monetization fall short of elevated expectations.

Wall Street Analysts Forecast Growth

SNOW has been the subject of a number of analyst reports. The Goldman Sachs Group raised their price objective on Snowflake from $300.00 to $436.00 and gave the company a “buy” rating in a research report on Thursday, September 3rd. Citizens Jmp boosted their price objective on shares of Snowflake from $408.00 to $488.00 and gave the company a “market outperform” rating in a report on Thursday, September 3rd. Wells Fargo & Company increased their price target on Snowflake from $500.00 to $525.00 and gave the company an “overweight” rating in a report on Thursday, September 3rd. Truist Financial set a $425.00 target price on shares of Snowflake and gave the company a “buy” rating in a report on Thursday, September 3rd. Finally, Deutsche Bank Aktiengesellschaft set a $400.00 price objective on Snowflake in a research note on Thursday, September 3rd. Thirty-four equities research analysts have rated the stock with a Buy rating, five have assigned a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat, the company has a consensus rating of “Moderate Buy” and an average target price of $414.24.

Snowflake Stock Performance

The company has a debt-to-equity ratio of 1.06, a quick ratio of 0.94 and a current ratio of 0.94. The business’s fifty day simple moving average is $310.58 and its 200-day simple moving average is $230.80. The firm has a market capitalization of $117.08 billion, a PE ratio of -104.35 and a beta of 1.33.

Snowflake (NYSE:SNOW) last released its earnings results on Wednesday, September 2nd. The company reported $0.62 EPS for the quarter, topping the consensus estimate of $0.45 by $0.17. Snowflake had a negative net margin of 20.07% and a negative return on equity of 46.32%. The firm had revenue of $1.55 billion for the quarter, compared to the consensus estimate of $1.48 billion. During the same quarter in the previous year, the firm earned $0.35 earnings per share. The company’s quarterly revenue was up 35.1% compared to the same quarter last year. As a group, equities research analysts expect that Snowflake Inc. will post -1.57 EPS for the current year.

Insider Buying and Selling

In other news, SVP Vivek Raghunathan sold 3,876 shares of the firm’s stock in a transaction dated Wednesday, September 16th. The stock was sold at an average price of $318.51, for a total transaction of $1,234,544.76. Following the completion of the transaction, the senior vice president owned 240,453 shares in the company, valued at $76,586,685.03. This trade represents a 1.59% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Director Frank Slootman sold 8,191 shares of the firm’s stock in a transaction that occurred on Wednesday, September 16th. The shares were sold at an average price of $318.51, for a total value of $2,608,915.41. Following the transaction, the director owned 19,024 shares of the company’s stock, valued at $6,059,334.24. This represents a 30.10% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold a total of 1,045,087 shares of company stock worth $314,431,792 in the last 90 days. 4.80% of the stock is owned by company insiders.

Institutional Trading of Snowflake

A number of large investors have recently made changes to their positions in the business. Nuveen LLC grew its holdings in Snowflake by 2.3% during the 4th quarter. Nuveen LLC now owns 5,277,851 shares of the company’s stock valued at $1,157,749,000 after purchasing an additional 116,521 shares during the last quarter. Geode Capital Management LLC raised its holdings in shares of Snowflake by 5.5% in the fourth quarter. Geode Capital Management LLC now owns 4,809,689 shares of the company’s stock worth $1,052,195,000 after buying an additional 249,668 shares during the period. Norges Bank bought a new stake in shares of Snowflake during the 4th quarter worth approximately $974,091,000. Janus Henderson Group PLC lifted its stake in shares of Snowflake by 20.4% during the 4th quarter. Janus Henderson Group PLC now owns 2,452,425 shares of the company’s stock worth $537,907,000 after acquiring an additional 415,951 shares during the last quarter. Finally, Legal & General Group Plc boosted its holdings in Snowflake by 5.2% during the 4th quarter. Legal & General Group Plc now owns 1,949,962 shares of the company’s stock valued at $427,744,000 after acquiring an additional 96,373 shares during the period. 65.10% of the stock is currently owned by institutional investors.

About Snowflake

Snowflake Inc (NYSE: SNOW) is a cloud-based data platform company that helps organizations store, process, analyze and share data. Its platform is designed to support data warehousing, data lakes, data engineering, data science, application development and business intelligence across public cloud environments.

Snowflake’s Data Cloud enables customers to consolidate and access structured, semi-structured and unstructured data while supporting secure data sharing and collaboration. Its offerings include Snowflake Cortex, which provides artificial intelligence and machine-learning capabilities, as well as tools for developing data applications and using data from Snowflake’s marketplace and partner ecosystem.

Founded in 2012, Snowflake serves businesses, government organizations and other institutions globally through cloud infrastructure provided by major public-cloud platforms.