Snowflake (NYSE:SNOW) Trading Down 5.1% After Analyst Downgrade

Snowflake Inc. (NYSE:SNOW) shares were down 5.1% during trading on Tuesday after Barclays downgraded the stock from an overweight rating to an equal weight rating. Barclays now has a $250.00 price target on the stock, down from their previous price target of $290.00. Snowflake traded as low as $207.50 and last traded at $209.1070. Approximately 8,020,285 shares were traded during trading, an increase of 74% from the average daily volume of 4,616,528 shares. The stock had previously closed at $220.28.

Other equities research analysts also recently issued research reports about the company. Needham & Company LLC reiterated a “buy” rating and issued a $280.00 price objective on shares of Snowflake in a report on Thursday, December 4th. Canaccord Genuity Group upped their price target on Snowflake from $260.00 to $270.00 and gave the company a “buy” rating in a research note on Thursday, December 4th. Morgan Stanley increased their price target on shares of Snowflake from $272.00 to $299.00 and gave the company an “overweight” rating in a research report on Thursday, December 4th. Wells Fargo & Company boosted their price objective on shares of Snowflake from $275.00 to $290.00 and gave the company an “overweight” rating in a report on Thursday, December 4th. Finally, Cantor Fitzgerald upped their target price on shares of Snowflake from $275.00 to $278.00 and gave the company an “overweight” rating in a research note on Thursday, December 4th. Two analysts have rated the stock with a Strong Buy rating, thirty-five have issued a Buy rating, four have assigned a Hold rating and three have issued a Sell rating to the company’s stock. According to MarketBeat, the company has a consensus rating of “Moderate Buy” and a consensus price target of $275.58.

Insider Activity at Snowflake

In other news, Director Frank Slootman sold 200,000 shares of the business’s stock in a transaction dated Thursday, December 18th. The stock was sold at an average price of $221.83, for a total value of $44,366,000.00. Following the sale, the director directly owned 50,329 shares in the company, valued at $11,164,482.07. The trade was a 79.89% 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. Also, EVP Christian Kleinerman sold 10,000 shares of the company’s stock in a transaction dated 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 transaction, the executive vice president directly owned 512,450 shares of the company’s stock, valued at $127,871,648.50. This represents a 1.91% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold 418,681 shares of company stock worth $96,073,145 over the last ninety days. 6.80% of the stock is owned by corporate insiders.

More Snowflake News

Here are the key news stories impacting Snowflake this week:

• Positive Sentiment: Analyst upgrade argues upside from improving fundamentals — Seeking Alpha highlights a double upgrade to “Buy,” pointing to RPO up ~37% y/y to $7.88B, 125% net revenue retention and accelerating AI/customer demand as reasons to “buy the dip.” Article Title
• Positive Sentiment: New sell‑side coverage from Goldman Sachs is bullish — GS initiated coverage with a “Buy” and a $250 PT, signaling institutional confidence that could attract buyers if sentiment stabilizes. Article Title
• Positive Sentiment: Strategic M&A — reporting that Snowflake plans to acquire Observe (per CRN) supports its observability/monitoring capabilities for data pipelines and AI workloads, which can deepen enterprise adoption and drive stickier revenue. Article Title
• Neutral Sentiment: Macro/sector framing: MarketBeat lists Snowflake among top cross‑cloud AI plays — supportive long‑term narrative but not an immediate catalyst. Article Title
• Neutral Sentiment: Partner/ISV activity: Yuki rolling out a 14‑day Snowflake optimization trial could increase usage/efficiency for customers, but impact on revenue is uncertain and gradual. Article Title
• Neutral Sentiment: Retail/investor attention pieces from Zacks/MSN are raising visibility — can amplify volatility but not a directional catalyst by itself. Article Title
• Negative Sentiment: Key near‑term headwind: Barclays downgraded SNOW from Overweight to Equal Weight and cut its PT from $290 to $250 — traders interpret this as reduced conviction and it likely triggered some selling pressure today. Article Title

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of SNOW. Kingstone Capital Partners Texas LLC acquired a new position in shares of Snowflake during the 2nd quarter worth approximately $3,900,134,000. Norges Bank bought a new position in shares of Snowflake in the second quarter valued at $944,895,000. Winslow Capital Management LLC bought a new position in shares of Snowflake in the second quarter valued at $725,667,000. Coatue Management LLC acquired a new position in Snowflake during the third quarter worth $441,277,000. Finally, American Century Companies Inc. raised its position in Snowflake by 233.3% during the third quarter. American Century Companies Inc. now owns 2,104,925 shares of the company’s stock worth $474,766,000 after acquiring an additional 1,473,354 shares in the last quarter. 65.10% of the stock is owned by institutional investors and hedge funds.

Snowflake Price Performance

The stock has a market capitalization of $71.56 billion, a P/E ratio of -51.76 and a beta of 1.14. The company has a debt-to-equity ratio of 1.07, a current ratio of 1.37 and a quick ratio of 1.37. The company’s 50-day simple moving average is $236.44 and its 200-day simple moving average is $229.05.

Snowflake (NYSE:SNOW) last released its quarterly earnings data on Wednesday, December 3rd. The company reported $0.35 earnings per share for the quarter, topping the consensus estimate of $0.31 by $0.04. The company had revenue of $1.21 billion for the quarter, compared to analyst estimates of $1.18 billion. Snowflake had a negative net margin of 30.76% and a negative return on equity of 45.91%. Snowflake’s revenue for the quarter was up 28.7% compared to the same quarter last year. During the same period in the previous year, the business earned $0.20 EPS. As a group, sell-side analysts expect that Snowflake Inc. will post -2.36 EPS for the current fiscal year.

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.