Snowflake Stock Rating Downgraded by StockNews.com

On November 30, 2024, StockNews.com announced a downgrade of Snowflake (NYSE: SNOW) from a “hold” rating to a “sell” rating. This decision highlights a shift in analysts' perspectives regarding the company’s performance and future outlook.

Snowflake's stock has faced scrutiny in recent times, and various research firms have conducted their evaluations. Morgan Stanley reiterated a rating of “equal weight” while establishing a price target of $175.00 for Snowflake shares on August 22, 2024. Meanwhile, Jefferies Financial Group adjusted their price target from $145.00 to $180.00, assigning a “buy” rating to the stock on November 21, 2024. Additionally, Argus initiated coverage of the stock, designating a “hold” rating in a report on October 1, 2024. Mizuho also raised their price target from $165.00 to $195.00, giving an “outperform” rating on the same day as Jefferies’ report. HSBC Global Research made a notable move by upgrading Snowflake’s rating from “moderate sell” to “hold” on August 23, 2024. Overall, among the analysts, two have issued a sell rating, ten have given a hold rating, while a significant number, twenty-seven, have advocated for a buy rating, resulting in an average rating of “Moderate Buy” and a price target of $181.09 according to MarketBeat.

Current Stock Performance

As of Thursday, Snowflake's shares opened trading at $174.83. The company boasts a market capitalization of $58.60 billion, with a price-to-earnings (PE) ratio currently at -51.57 and a beta of 0.83. Over the past year, the stock reached a low of $107.13 and a high of $237.72, demonstrating volatility. The moving averages for the company show a fifty-day average of $126.17 and a two-hundred-day average of $128.74.

Insider Transactions

In recent developments concerning insider activity, Chief Accounting Officer Emily Ho sold 2,021 shares on November 25, 2024, at an average price of $173.68, totaling approximately $351,007. Following this transaction, her stake in Snowflake decreased to 26,874 shares, valued at about $4.67 million. Additionally, insider Benoit Dageville sold 287 shares on September 23, 2024, for a total of $31,974.67. After this sale, he retained 53,250 shares, worth roughly $5.93 million. Over the last three months, insiders collectively sold 204,661 shares amounting to $32 million, and insiders hold 7.80% of the company's shares.

Institutional Investor Activity

Snowflake has also seen activity from institutional investors. State Street Corp raised its stake by 0.8% during the third quarter, now holding 6,867,097 shares valued at $788.76 million. Geode Capital Management obtained a 3.5% increase during the same period, owning 4,152,146 shares valued at $475.89 million. Two Sigma Advisers LP notably enhanced its holdings by 27.9% during the third quarter, now owning 4,043,200 shares. Ontario Teachers Pension Plan Board made headlines with a substantial increase of 19,399.2%, acquiring 2,572,336 shares during the period. Lastly, Legal & General Group Plc increased its ownership by 11.5%. Altogether, institutional investors and hedge funds control approximately 65.10% of Snowflake’s stock.

About Snowflake

Snowflake Inc is known for providing a cloud-based data platform, serving various organizations both domestically and internationally. Their platform includes a Data Cloud, allowing clients to consolidate data and derive insights, create data-driven applications, and share data more effectively. They also incorporate artificial intelligence solutions aimed at addressing business challenges.

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