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

Snowflake Inc. (NYSE:SNOW) gapped down before the market opened on Tuesday . The stock had previously closed at $119.56, but opened at $116.90. Snowflake shares last traded at $116.76, with a volume of 592,119 shares traded.

Analyst Ratings Changes

A number of research analysts have weighed in on the company. HSBC raised Snowflake from a “reduce” rating to a “hold” rating and increased their price target for the stock from $119.00 to $121.00 in a research note on Friday, August 23rd. TD Cowen decreased their target price on shares of Snowflake from $230.00 to $180.00 and set a “buy” rating on the stock in a research report on Monday, August 19th. UBS Group dropped their price objective on Snowflake from $155.00 to $125.00 and set a “neutral” rating for the company in a report on Tuesday, September 24th. Scotiabank lowered their price target on Snowflake from $195.00 to $165.00 and set a “sector outperform” rating for the company in a research report on Thursday, August 22nd. Finally, Barclays reduced their price objective on Snowflake from $191.00 to $146.00 and set an “equal weight” rating on the stock in a research note on Monday, August 19th. Two investment analysts have rated the stock with a sell rating, twelve have issued a hold rating and twenty-five have issued a buy rating to the company’s stock. According to data from MarketBeat, Snowflake has a consensus rating of “Moderate Buy” and an average target price of $174.74.

Snowflake Price Performance

The firm’s 50 day moving average price is $116.35 and its 200-day moving average price is $132.52. The firm has a market cap of $38.03 billion, a price-to-earnings ratio of -40.57 and a beta of 0.83.

Snowflake (NYSE:SNOW) last posted its quarterly earnings results on Wednesday, August 21st. The company reported $0.18 EPS for the quarter, beating the consensus estimate of $0.16 by $0.02. The firm had revenue of $868.80 million during the quarter, compared to analysts’ expectations of $851.72 million. Snowflake had a negative return on equity of 19.62% and a negative net margin of 31.73%. The company’s revenue for the quarter was up 28.9% on a year-over-year basis. During the same quarter in the prior year, the firm posted ($0.52) EPS. Analysts expect that Snowflake Inc. will post -2.41 EPS for the current year.

Insider Activity

In related news, EVP Christian Kleinerman sold 15,000 shares of Snowflake stock in a transaction dated Wednesday, August 7th. The stock was sold at an average price of $120.00, for a total value of $1,800,000.00. Following the completion of the transaction, the executive vice president now directly owns 718,773 shares of the company’s stock, valued at $86,252,760. The trade was a 0.00 % decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. In related news, EVP Christian Kleinerman sold 15,000 shares of the business’s stock in a transaction that occurred on Wednesday, August 7th. The shares were sold at an average price of $120.00, for a total value of $1,800,000.00. Following the completion of the transaction, the executive vice president now owns 718,773 shares in the company, valued at $86,252,760. The trade was a 0.00 % decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. Also, Director Frank Slootman sold 6,251 shares of the business’s stock in a transaction dated Tuesday, September 17th. The stock was sold at an average price of $114.39, for a total value of $715,051.89. Following the sale, the director now directly owns 208,735 shares of the company’s stock, valued at $23,877,196.65. This represents a 0.00 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last 90 days, insiders sold 59,538 shares of company stock worth $7,049,994. Insiders own 7.80% of the company’s stock.

Hedge Funds Weigh In On Snowflake

Several institutional investors have recently modified their holdings of SNOW. LRI Investments LLC grew its holdings in shares of Snowflake by 155.6% in the 2nd quarter. LRI Investments LLC now owns 184 shares of the company’s stock valued at $25,000 after buying an additional 112 shares during the period. Wellington Shields Capital Management LLC bought a new stake in shares of Snowflake in the second quarter worth about $27,000. V Square Quantitative Management LLC acquired a new position in shares of Snowflake in the 3rd quarter valued at approximately $30,000. Riverview Trust Co acquired a new stake in Snowflake during the 1st quarter worth approximately $31,000. Finally, Future Financial Wealth Managment LLC bought a new stake in shares of Snowflake during the first quarter worth $32,000. 65.10% of the stock is currently owned by institutional investors and hedge funds.

Snowflake Company Profile

Snowflake Inc provides a cloud-based data platform for various organizations in the United States and internationally. Its platform offers Data Cloud, which enables customers to consolidate data into a single source of truth to drive meaningful business insights, build data-driven applications, and share data and data products, as well as applies artificial intelligence (AI) for solving business problems.