Snowflake (NYSE:SNOW) Shares Down 2.8% Following Analyst Downgrade

Snowflake Inc. (NYSE:SNOW) fell 2.8% during mid-day trading on Tuesday after Mizuho lowered their price target on the stock from $285.00 to $220.00. Mizuho currently has an outperform rating on the stock. Snowflake traded as low as $172.02 and last traded at $177.21. 5,746,404 shares traded hands during trading, a decline of 5% from the average session volume of 6,054,628 shares. The stock had previously closed at $182.29.

Several other research analysts have also recently weighed in on the company. Deutsche Bank Aktiengesellschaft raised their target price on Snowflake from $250.00 to $275.00 and gave the company a “buy” rating in a research note on Thursday, December 4th. Citizens Jmp raised their price objective on shares of Snowflake from $283.00 to $325.00 and gave the company a “market outperform” rating in a research report on Tuesday, October 28th. Bank of America lifted their price objective on shares of Snowflake from $280.00 to $310.00 and gave the stock a “buy” rating in a research note on Monday, November 17th. Citigroup cut their target price on shares of Snowflake from $310.00 to $300.00 and set a “buy” rating for the company in a research note on Monday, December 8th. Finally, Piper Sandler restated an “overweight” rating and issued a $285.00 price target on shares of Snowflake in a research report on Thursday, December 4th. Two analysts have rated the stock with a Strong Buy rating, thirty-three have given a Buy rating, four have issued a Hold rating and three have assigned a Sell rating to the company’s stock. According to MarketBeat.com, Snowflake currently has an average rating of “Moderate Buy” and an average target price of $274.00.

Insiders Place Their Bets

In other news, SVP Vivek Raghunathan sold 11,801 shares of the firm’s stock in a transaction on Wednesday, December 31st. The stock was sold at an average price of $220.44, for a total value of $2,601,412.44. Following the completion of the sale, the senior vice president owned 218,020 shares of the company’s stock, valued at $48,060,328.80. This trade represents a 5.13% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at this link. Also, EVP Christian Kleinerman sold 10,000 shares of the company’s stock in a transaction on Monday, February 2nd. The shares were sold at an average price of $197.09, for a total value of $1,970,900.00. Following the transaction, the executive vice president directly owned 461,351 shares in the company, valued at $90,927,668.59. The trade was a 2.12% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 613,681 shares of company stock worth $130,573,518 in the last quarter. Corporate insiders own 6.80% of the company’s stock.

Key Headlines Impacting Snowflake

Here are the key news stories impacting Snowflake this week:

• Positive Sentiment: Seeking Alpha upgraded Snowflake, highlighting its AI pivot, a sizeable backlog (~$8B) and differentiated enterprise positioning — a bullish take that supports medium‑term growth expectations. Seeking Alpha Upgrade
• Positive Sentiment: Analyst and industry commentary (Forbes coverage) emphasizes Snowflake’s role in the AI software reshuffle alongside Salesforce, reinforcing the narrative that Snowflake can capture AI‑related data workloads and pricing power. Forbes: AI Software Shake-Up
• Neutral Sentiment: Mizuho lowered its price target to $220 from $285 but kept an “Outperform” rating — this reduces upside expectations vs. prior targets but still signals conviction in Snowflake’s fundamentals. Mizuho PT Cut
• Neutral Sentiment: Zacks and other analyst write‑ups note Snowflake trades at a premium (high P/S) vs. peers — a double‑edged factor: justified if AI growth materializes, but a vulnerability if execution or competition disappoints. Zacks: Valuation Note
• Negative Sentiment: Pomerantz LLP launched an investor probe into Snowflake, announcing a potential securities investigation — legal actions raise near‑term uncertainty and can pressure the stock while the matter unfolds. Pomerantz Investor Alert
• Negative Sentiment: Goldman Sachs trimmed its price target (to $246 from $286) while keeping a Buy—another analyst cut that lowers headline upside and likely contributed to selling pressure. Goldman Sachs PT Cut
• Negative Sentiment: Market‑day coverage (Zacks) flagged SNOW’s pullback as the broader market rose — illustrative that headline risk and fresh analyst target reductions are outweighing positive AI narratives today. Zacks: SNOW Stock Slides

Institutional Trading of Snowflake

Hedge funds have recently made changes to their positions in the stock. Avion Wealth increased its stake in Snowflake by 76.6% in the 2nd quarter. Avion Wealth now owns 113 shares of the company’s stock valued at $25,000 after buying an additional 49 shares during the period. Grey Fox Wealth Advisors LLC purchased a new position in shares of Snowflake during the 3rd quarter valued at $25,000. Tripletail Wealth Management LLC purchased a new position in shares of Snowflake during the 3rd quarter valued at $28,000. Kemnay Advisory Services Inc. acquired a new position in shares of Snowflake in the fourth quarter worth $28,000. Finally, Rossby Financial LCC raised its holdings in shares of Snowflake by 4,233.3% during the second quarter. Rossby Financial LCC now owns 130 shares of the company’s stock worth $29,000 after acquiring an additional 127 shares in the last quarter. 65.10% of the stock is owned by hedge funds and other institutional investors.

Snowflake Trading Down 2.8%

The business has a 50-day moving average of $206.83 and a 200-day moving average of $224.71. The company has a quick ratio of 1.37, a current ratio of 1.37 and a debt-to-equity ratio of 1.07. The stock has a market cap of $60.64 billion, a price-to-earnings ratio of -43.86 and a beta of 1.14.

Snowflake (NYSE:SNOW) last issued its earnings results 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 return on equity of 45.91% and a negative net margin of 30.76%.The business’s revenue was up 28.7% compared to the same quarter last year. During the same period in the prior year, the firm posted $0.20 EPS. As a group, research analysts forecast that Snowflake Inc. will post -2.36 earnings per share for the current 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.