Guggenheim Reiterates “Neutral” Rating for Snowflake (NYSE:SNOW)

Snowflake (NYSE:SNOW)‘s stock had its “neutral” rating restated by stock analysts at Guggenheim in a note issued to investors on Thursday, Benzinga reports.

Several other research firms have also recently weighed in on SNOW. Needham & Company LLC upped their price target on shares of Snowflake from $330.00 to $450.00 and gave the stock a “buy” rating in a report on Thursday. Raymond James Financial restated an “outperform” rating and set a $425.00 target price on shares of Snowflake in a research report on Thursday. TD Cowen raised their price target on Snowflake from $300.00 to $370.00 and gave the company a “buy” rating in a report on Thursday, August 20th. Oppenheimer lifted their price target on Snowflake from $400.00 to $475.00 and gave the company an “outperform” rating in a research report on Thursday. Finally, Weiss Ratings cut shares of Snowflake from a “sell (d-)” rating to a “sell (e+)” rating in a research report on Thursday, June 11th. Thirty-four investment analysts have rated the stock with a Buy rating, five have assigned a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and an average price target of $386.62.

Snowflake Price Performance

Shares of SNOW stock traded up $67.75 during trading hours on Thursday, reaching $373.59. The stock had a trading volume of 6,481,962 shares, compared to its average volume of 6,747,287. The stock’s fifty day simple moving average is $293.26 and its 200 day simple moving average is $218.27. The firm has a market capitalization of $129.49 billion, a PE ratio of -107.32 and a beta of 1.33. Snowflake has a 12 month low of $118.30 and a 12 month high of $384.56. The company has a current ratio of 1.05, a quick ratio of 1.05 and a debt-to-equity ratio of 1.18.

Snowflake (NYSE:SNOW) last posted its earnings results on Wednesday, September 2nd. The company reported $0.62 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.45 by $0.17. Snowflake had a negative net margin of 23.79% and a negative return on equity of 50.50%. The business had revenue of $1.55 billion for the quarter, compared to analysts’ expectations of $1.48 billion. During the same period in the prior year, the company posted $0.35 EPS. The business’s revenue for the quarter was up 35.1% compared to the same quarter last year. On average, equities research analysts predict that Snowflake will post -1.81 EPS for the current year.

Insider Activity at Snowflake

In other Snowflake news, Director Michael L. Speiser sold 50,338 shares of the firm’s stock in a transaction dated Friday, June 5th. The stock was sold at an average price of $245.21, for a total transaction of $12,343,380.98. Following the sale, the director owned 27,716 shares in the company, valued at $6,796,240.36. This trade represents a 64.49% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Frank Slootman sold 289,685 shares of the company’s stock in a transaction dated Monday, July 20th. The stock was sold at an average price of $274.39, for a total value of $79,486,667.15. Following the completion of the transaction, the director owned 28,535 shares of the company’s stock, valued at $7,829,718.65. The trade was a 91.03% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 1,156,901 shares of company stock valued at $321,725,352 over the last 90 days. 4.80% of the stock is owned by insiders.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently bought and sold shares of the business. Kemnay Advisory Services Inc. bought a new stake in shares of Snowflake in the 4th quarter worth approximately $28,000. Greenline Wealth Management LLC bought a new position in shares of Snowflake during the 4th quarter valued at $29,000. Basecamp Wealth Advisors LLC raised its position in Snowflake by 140.5% in the 1st quarter. Basecamp Wealth Advisors LLC now owns 202 shares of the company’s stock worth $30,000 after purchasing an additional 118 shares during the period. Emerald Advisers LLC raised its position in Snowflake by 95.2% in the 1st quarter. Emerald Advisers LLC now owns 205 shares of the company’s stock worth $31,000 after purchasing an additional 100 shares during the period. Finally, MV Capital Management Inc. bought a new stake in Snowflake in the fourth quarter worth $32,000. 65.10% of the stock is currently owned by institutional investors.

Key Headlines Impacting Snowflake

Here are the key news stories impacting Snowflake this week:

• Positive Sentiment: Snowflake reported adjusted earnings of $0.62 per share, above the $0.45 consensus estimate, while revenue reached $1.55 billion, exceeding expectations of $1.48 billion and increasing 35% year over year. Reuters: Snowflake shares surge as AI demand powers growth and lifts outlook
• Positive Sentiment: Management raised fiscal 2027 product-revenue guidance to $6.07 billion, citing stronger-than-expected AI demand. Product revenue grew 37%, and adoption of AI offerings including the CoCo coding agent and Cortex helped reinforce the company’s AI-growth narrative. CNBC: Snowflake spikes on healthy results and AI coding momentum
• Positive Sentiment: Several analysts raised their price targets and adopted bullish ratings after the results. Targets include $424 from BTIG, $450 from DA Davidson, Canaccord and Monness Crespi & Hardt, and $488 from Citizens JMP, with ratings ranging from “buy” to “market outperform.”
• Neutral Sentiment: Snowflake’s selection by Sayari to rebuild its Commercial World Model supports the platform’s enterprise-data and AI positioning. Sayari expects the migration to reduce its data-infrastructure costs by more than 50%, although the announcement is unlikely to materially affect near-term financial results. PR Newswire: Sayari selects Snowflake
• Negative Sentiment: Management lowered fiscal 2027 gross-margin guidance to 74%, a further 100-basis-point reduction, warning that expanding AI workloads are increasing costs. This raises questions about how efficiently Snowflake can monetize rapid AI usage. Seeking Alpha: Snowflake’s hidden warning in Q2
• Negative Sentiment: At an elevated valuation, Snowflake remains exposed to disappointment if AI growth slows or margins deteriorate. Persistent GAAP losses, stock-based compensation dilution, and substantial short interest add volatility and may explain why the stock has decreased despite strong results.

Snowflake Company Profile

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.