Snowflake (NYSE:SNOW) Trading Down 8.8% Following Analyst Downgrade

Snowflake Inc. (NYSE:SNOW)’s stock price dropped 8.8% during mid-day trading on Monday after Stifel Nicolaus lowered their price target on the stock from $280.00 to $225.00. Stifel Nicolaus currently has a buy rating on the stock. Snowflake traded as low as $155.38 and last traded at $157.2410. Approximately 11,093,918 shares traded hands during mid-day trading, an increase of 83% from the average daily volume of 6,055,134 shares. The stock had previously closed at $172.50.

Other analysts have also issued reports about the company. Deutsche Bank Aktiengesellschaft boosted their price objective on Snowflake from $250.00 to $275.00 and gave the company a “buy” rating in a report on Thursday, December 4th. TD Cowen lowered their price target on Snowflake from $300.00 to $270.00 and set a “buy” rating for the company in a report on Friday. Evercore upped their price target on Snowflake from $280.00 to $300.00 and gave the company an “outperform” rating in a research report on Thursday, December 4th. UBS Group restated a “buy” rating on shares of Snowflake in a research note on Thursday, December 4th. Finally, Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Snowflake in a report on Wednesday, January 21st. Two research analysts have rated the stock with a Strong Buy rating, thirty-three have issued a Buy rating, four have issued a Hold rating and three have issued a Sell rating to the stock. According to data from MarketBeat, the company currently has an average rating of “Moderate Buy” and an average target price of $265.63.

Insider Activity

In other news, Director Michael L. Speiser sold 50,338 shares of the stock in a transaction on Friday, December 5th. The stock was sold at an average price of $230.65, for a total value of $11,610,459.70. Following the completion of the transaction, the director owned 32,756 shares of the company’s stock, valued at approximately $7,555,171.40. This represents a 60.58% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this link. Also, EVP Christian Kleinerman sold 10,000 shares of the firm’s stock in a transaction on Monday, December 1st. The shares were 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 in the company, valued at $127,871,648.50. This trade represents a 1.91% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last 90 days, insiders sold 713,681 shares of company stock valued at $148,264,518. Company insiders own 6.80% of the company’s stock.

Key Stories Impacting Snowflake

Here are the key news stories impacting Snowflake this week:

• Positive Sentiment: Snowflake expanded Cortex Code CLI to support non‑Snowflake data sources (dbt, Apache Airflow), broadening its developer tooling and AI workflows — a feature that can deepen enterprise adoption. Snowflake Cortex Code Expands Towards Supporting Any Data, Anywhere
• Positive Sentiment: Customer adoption update: Wolfspeed has expanded use of Snowflake’s AI Data Cloud to unify factory, supply‑chain and enterprise data — a concrete example of industry adoption that supports Snowflake’s AI platform story. Snowflake Inc. (SNOW) Expands AI Reach With Strategic Partnerships and Industry Adoption
• Positive Sentiment: Citi told investors the recent ~30% pullback looks like an overreaction and maintained a Buy stance, signaling confidence among some sell‑side analysts in Snowflake’s longer‑term growth despite recent volatility. Citi Notes Snowflake’s (SNOW) 30% Pull Back to Be an Overreaction
• Neutral Sentiment: Earnings event: Snowflake reports fiscal Q4 results after the close on Feb. 25 — investors will focus on revenue growth, margins and forward guidance for signs of enterprise spending stabilization. What’s Going On With Snowflake Stock Monday?
• Neutral Sentiment: Pre‑earnings commentary: Several analyst writeups (Zacks, market pieces) debate buy/hold/sell positions ahead of results — increasing short‑term volatility but not changing the company’s long‑term AI narrative. Should You Buy, Sell, or Hold SNOW Stock Before Q4 Earnings Release?
• Neutral Sentiment: BTIG lowered its price target (from $312 to $235) but kept a Buy rating — a mixed signal: bullish stance but tempered near‑term expectations. SNOW – Snowflake price target lowered by at BTIG
• Negative Sentiment: Fund selling: Artisan Mid Cap Fund sold its Snowflake position citing elevated valuation — a direct signal that some institutional holders are trimming exposure. Artisan Mid Cap Fund Sold Snowflake (SNOW) Due to Elevated Valuation
• Negative Sentiment: Insider selling: a Snowflake director recently sold roughly $17.7M of shares, and the move was flagged by market coverage — typically perceived as a negative near‑term signal. Insider Selling: Snowflake (NYSE:SNOW) Director Sells $17,691,000.00 in Stock
• Negative Sentiment: Additional analyst target cuts and the recent big pullback have reinforced valuation concerns; these headline revisions can pressure the stock even when fundamentals (revenue growth, product momentum) remain constructive. Analyst Coverage/Price Target Notes

Hedge Funds Weigh In On Snowflake

Several large investors have recently bought and sold shares of SNOW. Virtu Financial LLC bought a new position in shares of Snowflake in the fourth quarter valued at approximately $1,706,000. Copos Capital S.a r.l. acquired a new stake in Snowflake in the fourth quarter worth approximately $35,000. MV Capital Management Inc. bought a new position in Snowflake during the 4th quarter valued at $32,000. Sunbelt Securities Inc. increased its position in shares of Snowflake by 1.8% during the 4th quarter. Sunbelt Securities Inc. now owns 4,793 shares of the company’s stock valued at $1,051,000 after purchasing an additional 86 shares during the period. Finally, Josh Arnold Investment Consultant LLC acquired a new position in shares of Snowflake during the 4th quarter valued at $18,646,000. Institutional investors and hedge funds own 65.10% of the company’s stock.

Snowflake Stock Down 8.8%

The company has a debt-to-equity ratio of 1.07, a quick ratio of 1.37 and a current ratio of 1.37. The company has a market cap of $53.81 billion, a P/E ratio of -38.92 and a beta of 1.14. The stock has a 50 day moving average price of $203.13 and a 200 day moving average price of $223.68.

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

Snowflake Company Profile

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.