Snowflake (NYSE:SNOW) Stock Price Up 2.3% on Strong Earnings

Snowflake Inc. (NYSE:SNOW)’s stock price traded up 2.3% during mid-day trading on Thursday after the company announced better than expected quarterly earnings. The company traded as high as $184.42 and last traded at $173.03. 16,314,113 shares traded hands during mid-day trading, an increase of 148% from the average session volume of 6,586,470 shares. The stock had previously closed at $169.21.

The company reported $0.32 EPS for the quarter, beating the consensus estimate of $0.27 by $0.05. The company had revenue of $1.28 billion for the quarter, compared to the consensus estimate of $1.25 billion. Snowflake had a negative net margin of 30.76% and a negative return on equity of 45.91%. The firm’s revenue was up 30.1% compared to the same quarter last year. During the same period in the prior year, the firm posted $0.30 EPS.

Snowflake News Summary

Here are the key news stories impacting Snowflake this week:

• Positive Sentiment: Q4 results beat: Revenue of $1.28B (+30% YoY) and adjusted EPS topped expectations — the report and stronger cash flow drove positive investor reaction. Snowflake Stock Surges After Q4 Revenue Jumps 30%, EPS Tops Estimates
• Positive Sentiment: Guidance and demand: Management forecasted FY‑2027 product revenue growth above Street expectations (management targeting ~27% product growth), which analysts say reflects healthy, AI-driven demand for Snowflake’s data platform. Snowflake expects annual product revenue above estimates as AI boosts demand (Reuters)
• Positive Sentiment: AI positioning validated by analysts: Several boutiques and brokers called Snowflake an “AI winner” and said the company is well‑positioned to capture enterprise data moving into AI workflows. That supports a multi‑quarter growth narrative. Snowflake Seen as ‘AI Winner’ (Yahoo)
• Positive Sentiment: Backlog / RPO and cash flow strength: Remaining performance obligations and a larger revenue backlog were highlighted as evidence of durable demand and near-term revenue visibility. Market commentary points to improving cash generation. MarketBeat: Snowflake Q4 and backlog analysis
• Positive Sentiment: Big deals and product wins: Management noted large contract wins (including a ~$400M deal disclosure in coverage) and expanding enterprise adoption—an upside driver for future consumption. Seeking Alpha: FY27 outlook and large deal
• Neutral Sentiment: Mixed analyst reactions: Many firms trimmed price targets after the cautious elements of guidance (UBS, Morgan Stanley, Piper, TD Cowen among others) but kept buy/overweight stances — signaling confidence on secular AI exposure but short‑term caution. Benzinga: Analysts slash forecasts after Q4
• Neutral Sentiment: Comparator and competitive notes: Coverage comparing Snowflake to peers (e.g., Samsara) highlights Snowflake’s AI tailwinds but also shows rival strengths — useful context for relative positioning, not an immediate catalyst. Zacks: Snowflake vs. Samsara
• Negative Sentiment: Market reaction and mixed outlook: Some outlets noted shares slipped in places despite the beat because management’s guide was viewed as conservative — that created short‑term volatility. Snowflake Q4 Earnings Beat, Shares Fall (Yahoo)
• Negative Sentiment: Legal risks: Multiple class‑action filings / investor notices and looming filing deadlines were announced this week; litigation risk raises an overhang for short‑term sentiment. GlobeNewswire: Portnoy Law Firm class action notice

Analyst Ratings Changes

Several research firms have recently weighed in on SNOW. KeyCorp decreased their price target on shares of Snowflake from $285.00 to $235.00 and set an “overweight” rating for the company in a research note on Thursday, February 19th. Bank of America upped their target price on Snowflake from $280.00 to $310.00 and gave the stock a “buy” rating in a report on Monday, November 17th. Guggenheim restated a “neutral” rating on shares of Snowflake in a research note on Wednesday, February 18th. Zacks Research downgraded Snowflake from a “hold” rating to a “strong sell” rating in a report on Tuesday, February 3rd. Finally, Cantor Fitzgerald reiterated an “overweight” rating and set a $250.00 target price on shares of Snowflake in a report on Monday. Two analysts have rated the stock with a Strong Buy rating, thirty-three have issued a Buy rating, four have given a Hold rating and three have assigned a Sell rating to the stock. According to data from MarketBeat, the company has a consensus rating of “Moderate Buy” and a consensus price target of $248.84.

Insider Buying and Selling at Snowflake

In other Snowflake news, Director Frank Slootman sold 100,000 shares of the stock in a transaction dated Wednesday, February 18th. The stock was sold at an average price of $176.91, for a total transaction of $17,691,000.00. Following the sale, the director directly owned 50,329 shares of the company’s stock, valued at approximately $8,903,703.39. This trade represents a 66.52% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, SVP Vivek Raghunathan sold 11,801 shares of the business’s stock in a transaction dated Wednesday, December 31st. The shares were sold at an average price of $220.44, for a total value of $2,601,412.44. Following the completion of the transaction, the senior vice president directly owned 218,020 shares of the company’s stock, valued at approximately $48,060,328.80. This trade represents a 5.13% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold a total of 713,681 shares of company stock valued at $148,264,518 in the last three months. Company insiders own 6.80% of the company’s stock.

Institutional Trading of Snowflake

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Sumitomo Mitsui Trust Group Inc. increased its holdings in shares of Snowflake by 1.1% during the 3rd quarter. Sumitomo Mitsui Trust Group Inc. now owns 732,092 shares of the company’s stock valued at $165,123,000 after acquiring an additional 8,002 shares during the last quarter. Federated Hermes Inc. boosted its position in Snowflake by 13.5% during the third quarter. Federated Hermes Inc. now owns 408,037 shares of the company’s stock worth $92,047,000 after purchasing an additional 48,411 shares during the period. Penserra Capital Management LLC raised its holdings in Snowflake by 32.8% in the 3rd quarter. Penserra Capital Management LLC now owns 153,358 shares of the company’s stock worth $34,586,000 after acquiring an additional 37,911 shares during the period. Vanguard Group Inc. lifted its position in shares of Snowflake by 3.1% during the 3rd quarter. Vanguard Group Inc. now owns 28,647,593 shares of the company’s stock worth $6,461,465,000 after purchasing an additional 857,832 shares during the last quarter. Finally, Rheos Capital Works Inc. boosted its position in shares of Snowflake by 102.9% in the third quarter. Rheos Capital Works Inc. now owns 207,000 shares of the company’s stock valued at $46,689,000 after acquiring an additional 105,000 shares during the period. Institutional investors and hedge funds own 65.10% of the company’s stock.

Snowflake Trading Up 2.3%

The company has a current ratio of 1.37, a quick ratio of 1.37 and a debt-to-equity ratio of 1.07. The stock has a market capitalization of $59.21 billion, a P/E ratio of -42.83 and a beta of 1.14. The business’s fifty day simple moving average is $201.01 and its two-hundred day simple moving average is $223.09.

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.