Snowflake (NYSE:SNOW) Stock Price Down 8.5% – Time to Sell?
by Danessa Lincoln · The Markets DailySnowflake Inc. (NYSE:SNOW – Get Free Report)’s share price fell 8.5% during trading on Friday . The company traded as low as $118.30 and last traded at $120.9490. 23,242,639 shares changed hands during mid-day trading, an increase of 266% from the average session volume of 6,356,684 shares. The stock had previously closed at $132.24.
Snowflake News Summary
Here are the key news stories impacting Snowflake this week:
- Positive Sentiment: Bullish take arguing SNOW is materially cheaper after a large YTD decline; highlights Snowflake’s consumption-based model, AI-driven demand and large backlog/RPO growth as reasons the pullback may be a buying opportunity. Snowflake: This Company Isn’t SaaS, Calmly ‘Buy’ As Others Panic Sell
- Positive Sentiment: Product/strategy update: Snowflake expanded its open data strategy with Iceberg V3 support and governance/portability plans — a technical move that can ease migrations, increase data sharing and improve appeal to AI/analytics workloads. Snowflake expands open data strategy
- Neutral Sentiment: Market commentary framing today’s sell‑off as an “AI infrastructure” repricing that may create dip‑buy opportunities for durable businesses like Snowflake; useful for investors weighing tactical entry points versus fundamental concerns. AI infrastructure stocks sell-off: why NET and SNOW could be dip buys
- Negative Sentiment: Legal overhang: multiple law firms (Rosen, Bronstein Gewirtz & Grossman, The Gross Law Firm, Faruqi & Faruqi, Pomerantz, Schall, Bernstein Liebhard, etc.) have filed or issued investor alerts about a securities class action covering purchases between June 27, 2023 and Feb 28, 2024 and are soliciting lead‑plaintiff candidates ahead of an April 27 deadline — this increases potential litigation risk and newsflow that can pressure the stock. ROSEN FINAL DEADLINE: Rosen Law Firm encourages Snowflake investors to secure counsel
- Negative Sentiment: Sector repricing and heavy volume: coverage notes the market has repriced enterprise software on “AI agent” fears; SNOW has hit fresh lows and moved sharply down on elevated volume, indicating capitulation risk and greater near‑term downside volatility. NET Down 12%, SNOW Down 9%: The Market Just Repriced the Entire Software Sector
- Negative Sentiment: Customer security concerns: reports that some Snowflake customers suffered data‑theft incidents tied to a third‑party issue add an operational/security risk that can hurt sentiment, customer trust and complicate sales conversations. Snowflake customers suffer data theft attacks after third-party issue
Analyst Upgrades and Downgrades
SNOW has been the topic of several recent analyst reports. Mizuho reduced their target price on Snowflake from $285.00 to $220.00 and set an “outperform” rating on the stock in a research report on Tuesday, February 17th. Zacks Research raised Snowflake from a “strong sell” rating to a “hold” rating in a research report on Wednesday, March 4th. Morgan Stanley reduced their target price on Snowflake from $270.00 to $245.00 and set an “overweight” rating on the stock in a research report on Thursday, February 26th. Cantor Fitzgerald reaffirmed an “overweight” rating and set a $250.00 target price on shares of Snowflake in a research report on Monday, February 23rd. Finally, Rosenblatt Securities reaffirmed a “buy” rating and set a $275.00 target price on shares of Snowflake in a research report on Thursday, February 26th. One research analyst has rated the stock with a Strong Buy rating, thirty-three have issued a Buy rating, five have assigned a Hold rating and two have given a Sell rating to the company. According to MarketBeat, the company has an average rating of “Moderate Buy” and an average price target of $249.62.
Get Our Latest Stock Analysis on SNOW
Snowflake Stock Down 8.5%
The business has a fifty day moving average price of $168.56 and a two-hundred day moving average price of $212.56. The company has a debt-to-equity ratio of 1.18, a current ratio of 1.30 and a quick ratio of 1.30. The firm has a market capitalization of $41.81 billion, a price-to-earnings ratio of -30.62 and a beta of 1.23.
Snowflake (NYSE:SNOW – Get Free Report) last issued its earnings results on Wednesday, February 25th. The company reported $0.32 EPS for the quarter, topping analysts’ consensus estimates of $0.27 by $0.05. Snowflake had a negative return on equity of 50.61% and a negative net margin of 28.43%.The firm had revenue of $1.28 billion for the quarter, compared to the consensus estimate of $1.25 billion. During the same quarter in the prior year, the business earned $0.30 earnings per share. The company’s revenue was up 30.1% compared to the same quarter last year. On average, equities analysts expect that Snowflake Inc. will post -2.36 earnings per share for the current year.
Insider Transactions at Snowflake
In other news, SVP Vivek Raghunathan sold 3,876 shares of the company’s stock in a transaction dated Wednesday, April 1st. The stock was sold at an average price of $152.80, for a total value of $592,252.80. Following the sale, the senior vice president owned 273,323 shares in the company, valued at $41,763,754.40. This represents a 1.40% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Michael L. Speiser sold 403 shares of the company’s stock in a transaction dated Monday, April 6th. The stock was sold at an average price of $148.21, for a total value of $59,728.63. Following the completion of the sale, the director owned 22,912 shares in the company, valued at $3,395,787.52. The trade was a 1.73% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders have sold 594,313 shares of company stock valued at $108,831,780. 6.80% of the stock is owned by insiders.
Institutional Trading of Snowflake
A number of hedge funds have recently modified their holdings of the stock. Vanguard Group Inc. boosted its stake in shares of Snowflake by 5.1% in the fourth quarter. Vanguard Group Inc. now owns 30,095,687 shares of the company’s stock worth $6,601,790,000 after buying an additional 1,448,094 shares during the last quarter. Jennison Associates LLC boosted its position in Snowflake by 27.7% during the fourth quarter. Jennison Associates LLC now owns 11,603,302 shares of the company’s stock worth $2,545,300,000 after purchasing an additional 2,519,413 shares in the last quarter. State Street Corp boosted its position in Snowflake by 1.4% during the second quarter. State Street Corp now owns 6,887,073 shares of the company’s stock worth $1,541,120,000 after purchasing an additional 94,293 shares in the last quarter. Nuveen LLC boosted its position in Snowflake by 2.3% during the fourth quarter. Nuveen LLC now owns 5,277,851 shares of the company’s stock worth $1,157,749,000 after purchasing an additional 116,521 shares in the last quarter. Finally, Geode Capital Management LLC boosted its position in Snowflake by 5.5% during the fourth quarter. Geode Capital Management LLC now owns 4,809,689 shares of the company’s stock worth $1,052,195,000 after purchasing an additional 249,668 shares in the last quarter. Hedge funds and other institutional investors own 65.10% of the company’s stock.
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.