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

Snowflake Inc. (NYSE:SNOW)’s share price 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 changing hands.

Wall Street Analysts Forecast Growth

A number of research analysts have recently weighed in on SNOW shares. Rosenblatt Securities restated a “buy” rating and set a $180.00 price objective on shares of Snowflake in a research report on Wednesday, October 2nd. Canaccord Genuity Group decreased their price objective on shares of Snowflake from $215.00 to $190.00 and set a “buy” rating for the company in a research note on Thursday, August 22nd. Argus started coverage on shares of Snowflake in a research note on Tuesday, October 1st. They set a “hold” rating for the company. Wells Fargo & Company decreased their price target on shares of Snowflake from $130.00 to $125.00 and set an “equal weight” rating for the company in a research note on Thursday, August 22nd. Finally, HSBC raised shares of Snowflake from a “reduce” rating to a “hold” rating and lifted their price target for the company from $119.00 to $121.00 in a research note on Friday, August 23rd. Two 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 stock. According to data from MarketBeat, the company has an average rating of “Moderate Buy” and an average target price of $174.74.

Snowflake Stock Performance

The company has a 50 day moving average of $116.58 and a 200-day moving average of $132.79. The stock has a market cap of $38.40 billion, a price-to-earnings ratio of -41.88 and a beta of 0.83.

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

Insiders Place Their Bets

In other Snowflake news, insider Benoit Dageville sold 1,946 shares of the company’s stock in a transaction dated Tuesday, September 17th. The stock was sold at an average price of $114.39, for a total transaction of $222,602.94. Following the sale, the insider now owns 53,820 shares in the company, valued at $6,156,469.80. This represents a 0.00 % decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. In other news, insider Benoit Dageville sold 1,946 shares of the stock in a transaction dated Tuesday, September 17th. The stock was sold at an average price of $114.39, for a total value of $222,602.94. Following the transaction, the insider now owns 53,820 shares in the company, valued at approximately $6,156,469.80. This represents a 0.00 % decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, Director Frank Slootman sold 1,606 shares of the stock in a transaction dated Tuesday, September 10th. The shares were sold at an average price of $109.96, for a total value of $176,595.76. Following the completion of the transaction, the director now owns 218,246 shares in the company, valued at approximately $23,998,330.16. The trade was a 0.00 % decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 59,538 shares of company stock worth $7,049,994 in the last quarter. 7.80% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the company. LRI Investments LLC grew its stake 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 purchasing an additional 112 shares during the last quarter. Wellington Shields Capital Management LLC purchased a new position in Snowflake in the 2nd quarter valued at $27,000. V Square Quantitative Management LLC acquired a new position in Snowflake in the 3rd quarter valued at $30,000. Riverview Trust Co purchased a new position in Snowflake during the 1st quarter worth $31,000. Finally, Future Financial Wealth Managment LLC purchased a new stake in shares of Snowflake in the first quarter valued at about $32,000. Hedge funds and other institutional investors own 65.10% of the company’s stock.

About Snowflake

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.