Snowflake (NYSE:SNOW) Stock Rating Upgraded by Phillip Securities

Snowflake (NYSE:SNOW) was upgraded by research analysts at Phillip Securities to a “strong-buy” rating in a research report issued to clients and investors on Sunday, Zacks reports.

Several other equities research analysts have also issued reports on SNOW. Bank of America lifted their price target on shares of Snowflake from $330.00 to $395.00 and gave the company a “buy” rating in a report on Wednesday, August 19th. Jefferies Financial Group set a $430.00 price target on shares of Snowflake and gave the company a “buy” rating in a research report on Thursday, September 3rd. UBS Group lifted their price objective on Snowflake from $425.00 to $500.00 and gave the stock a “buy” rating in a research note on Thursday, September 3rd. KeyCorp upped their target price on Snowflake from $285.00 to $325.00 and gave the company an “overweight” rating in a report on Thursday, July 16th. Finally, DA Davidson upped their price objective on shares of Snowflake from $300.00 to $450.00 and gave the company a “buy” rating in a research note on Thursday, September 3rd. One research analyst has rated the stock with a Strong Buy rating, thirty-four have given a Buy rating, five have assigned a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus target price of $414.24.

Snowflake Trading Down 2.3%

Shares of SNOW stock opened at $328.33 on Friday. Snowflake has a 12-month low of $118.30 and a 12-month high of $384.56. The company has a market capitalization of $115.83 billion, a PE ratio of -103.25 and a beta of 1.33. The firm has a 50 day moving average price of $319.52 and a two-hundred day moving average price of $238.69. The company has a quick ratio of 0.94, a current ratio of 0.94 and a debt-to-equity ratio of 1.06.

Snowflake (NYSE:SNOW) last issued its quarterly earnings data on Wednesday, September 2nd. The company reported $0.62 EPS for the quarter, beating analysts’ consensus estimates of $0.45 by $0.17. Snowflake had a negative return on equity of 46.32% and a negative net margin of 20.07%.The firm had revenue of $1.55 billion for the quarter, compared to analyst estimates of $1.48 billion. During the same period in the prior year, the firm posted $0.35 EPS. The company’s revenue for the quarter was up 35.1% on a year-over-year basis. As a group, analysts predict that Snowflake will post -1.46 earnings per share for the current year.

Insider Activity at Snowflake

In related news, SVP Vivek Raghunathan sold 3,876 shares of the company’s stock in a transaction dated Wednesday, September 16th. The shares were sold at an average price of $318.51, for a total value of $1,234,544.76. Following the sale, the senior vice president owned 240,453 shares in the company, valued at $76,586,685.03. This represents a 1.59% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, EVP Christian Kleinerman sold 2,622 shares of Snowflake stock in a transaction dated Tuesday, September 22nd. The shares were sold at an average price of $344.50, for a total value of $903,279.00. Following the transaction, the executive vice president owned 328,738 shares of the company’s stock, valued at $113,250,241. This trade represents a 0.79% 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. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold a total of 1,234,616 shares of company stock valued at $387,557,612 over the last quarter. 4.80% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Snowflake

Several large investors have recently bought and sold shares of the stock. QRG Capital Management Inc. boosted its holdings in Snowflake by 67.9% during the 2nd quarter. QRG Capital Management Inc. now owns 82,137 shares of the company’s stock worth $20,904,000 after acquiring an additional 33,218 shares during the last quarter. Silicon Valley Capital Partners raised its holdings in shares of Snowflake by 15.2% in the second quarter. Silicon Valley Capital Partners now owns 62,087 shares of the company’s stock valued at $15,801,000 after purchasing an additional 8,208 shares during the last quarter. Wellington Altus USA Inc. bought a new position in shares of Snowflake during the second quarter valued at about $102,000. Anchor Investment Management LLC purchased a new position in Snowflake during the second quarter worth about $76,000. Finally, Sequoia Financial Advisors LLC boosted its holdings in Snowflake by 14.2% during the second quarter. Sequoia Financial Advisors LLC now owns 39,598 shares of the company’s stock worth $10,078,000 after purchasing an additional 4,927 shares during the last quarter. 65.10% of the stock is currently owned by institutional investors.

Snowflake News Roundup

Here are the key news stories impacting Snowflake this week:

• Positive Sentiment: Phillip Securities upgraded Snowflake to “strong buy”, adding to recent optimism about the company’s AI Data Cloud growth prospects. Snowflake Stock Moved Up to Strong-Buy by Phillip Securities
• Positive Sentiment: Snowflake priced an upsized $3.75 billion private placement of 0.00% convertible senior notes: $2.0 billion due in 2029 and $1.75 billion due in 2031. The zero-coupon structure avoids cash interest expense and gives the company additional capital for strategic initiatives, including potential investments or acquisitions in the competitive AI-data market. Snowflake Prices Upsized Private Placement of $3.75 Billion of 0.00% Convertible Senior Notes
• Neutral Sentiment: Snowflake shares also moved lower alongside Salesforce, ServiceNow and other software stocks after Meta hired MongoDB’s CEO to lead its enterprise platform, raising concerns about intensifying competition in enterprise technology. Why Salesforce, ServiceNow and Snowflake All Dropped
• Negative Sentiment: The debt raise initially pressured the stock because conversion of the notes could increase Snowflake’s share count and dilute existing investors. Although the notes carry no interest and Snowflake announced transactions designed to reduce potential dilution, investors remain focused on the size of the financing and the company’s ongoing negative earnings and net margin. Why Snowflake Stock Is Falling

About Snowflake

Snowflake Inc (NYSE: SNOW) provides a cloud-based data platform that enables organizations to store, process, analyze and share data. Its platform is designed to support data warehousing, data lakes, data engineering, data science, application development and artificial intelligence workloads in a single environment.

Snowflake’s services include cloud data storage and computing, data sharing and collaboration tools, governance and security capabilities, and access to third-party data through the Snowflake Marketplace.