Snowflake (NYSE:SNOW) Stock Price Down 8.8% on Analyst Downgrade

Snowflake Inc. (NYSE:SNOW) shares fell 8.8% during mid-day trading on Monday after Stifel Nicolaus lowered their price target on the stock from $280.00 to $225.00. Stifel Nicolaus currently has a buy rating on the stock. Snowflake traded as low as $155.38 and last traded at $157.2410. 11,093,918 shares changed hands during trading, an increase of 83% from the average session volume of 6,055,134 shares. The stock had previously closed at $172.50.

Other equities analysts have also recently issued reports about the stock. Wells Fargo & Company raised their target price on shares of Snowflake from $275.00 to $290.00 and gave the company an “overweight” rating in a research note on Thursday, December 4th. Evercore lifted their target price on Snowflake from $280.00 to $300.00 and gave the stock an “outperform” rating in a report on Thursday, December 4th. BTIG Research decreased their target price on Snowflake from $312.00 to $235.00 and set a “buy” rating on the stock in a research report on Monday. Zacks Research lowered Snowflake from a “hold” rating to a “strong sell” rating in a research note on Tuesday, February 3rd. Finally, DA Davidson reaffirmed a “buy” rating and issued a $300.00 price objective on shares of Snowflake in a research note on Friday, January 30th. Two analysts have rated the stock with a Strong Buy rating, thirty-three have assigned a Buy rating, four have assigned a Hold rating and three have assigned a Sell rating to the company. Based on data from MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus target price of $265.63.

Insider Buying and Selling

In other news, EVP Christian Kleinerman sold 10,000 shares of the business’s stock in a transaction that occurred on Monday, December 1st. The stock was sold at an average price of $249.53, for a total transaction of $2,495,300.00. Following the transaction, the executive vice president owned 512,450 shares of the company’s stock, valued at approximately $127,871,648.50. The trade was a 1.91% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, Director Michael L. Speiser sold 50,338 shares of the stock in a transaction on Friday, December 5th. The shares were sold at an average price of $230.65, for a total value of $11,610,459.70. Following the sale, the director owned 32,756 shares in the company, valued at $7,555,171.40. The trade was a 60.58% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 713,681 shares of company stock worth $148,264,518 in the last 90 days. Company insiders own 6.80% of the company’s stock.

More Snowflake News

Here are the key news stories impacting Snowflake this week:

• Positive Sentiment: Large OpenAI partnership — Snowflake struck a multi‑year, $200M deal to integrate OpenAI models into its Cortex AI platform, letting customers run advanced models directly on Snowflake data and workflows; this strengthens Snowflake’s positioning in enterprise AI and could accelerate customer spend. Snowflake Leans On OpenAI Alliance As AI Workloads Shape Growth Story
• Positive Sentiment: Product expansion — Snowflake expanded Cortex Code CLI to support external data sources (starting with dbt and Apache Airflow), which increases developer adoption and makes Snowflake’s AI tooling more useful across existing data engineering stacks. Snowflake Cortex Code Expands Towards Supporting Any Data, Anywhere
• Positive Sentiment: Customer wins and industry adoption — Wolfspeed and other enterprise/sports organizations are expanding use of Snowflake’s AI Data Cloud, reinforcing momentum in cross‑industry adoption that could support revenue acceleration if sustained. Snowflake Inc. (SNOW) Expands AI Reach With Strategic Partnerships and Industry Adoption
• Neutral Sentiment: Earnings catalyst — SNOW reports fiscal Q4 results after the close on Feb. 25; investors will focus on revenue growth, margins and guidance to judge whether enterprise spending is stabilizing. Short‑term volatility is likely around the release. What’s Going On With Snowflake Stock Monday?
• Neutral Sentiment: Pre‑earnings analyst commentary — several “buy/sell/hold” previews and stock primer pieces are circulating, reflecting mixed analyst views that could amplify moves but not provide fresh company‑specific news. Should You Buy, Sell, or Hold SNOW Stock Before Q4 Earnings Release?
• Negative Sentiment: Shareholder litigation risk — Pomerantz LLP announced an investor investigation into Snowflake, which may create legal distraction and potential future liabilities. INVESTOR ALERT: Pomerantz Law Firm Investigates Claims On Behalf of Investors of Snowflake Inc. – SNOW
• Negative Sentiment: Fund selling over valuation — Artisan Mid Cap Fund disclosed it sold SNOW citing an elevated valuation, a sign institutional holders may trim exposure if they view multiples as stretched. Artisan Mid Cap Fund Sold Snowflake (SNOW) Due to Elevated Valuation
• Negative Sentiment: Price target cut — BTIG trimmed its SNOW price target from $312 to $235 (still a “buy”), which signals some analyst caution on near‑term upside and could temper sentiment. SNOW: Snowflake price target lowered by BTIG

Hedge Funds Weigh In On Snowflake

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

Snowflake Stock Performance

The business has a 50-day moving average price of $201.94 and a 200-day moving average price of $223.46. The company has a quick ratio of 1.37, a current ratio of 1.37 and a debt-to-equity ratio of 1.07. The firm has a market capitalization of $55.03 billion, a price-to-earnings ratio of -39.80 and a beta of 1.14.

Snowflake (NYSE:SNOW) last announced its earnings results on Wednesday, December 3rd. The company reported $0.35 earnings per share for the quarter, topping the consensus estimate of $0.31 by $0.04. Snowflake had a negative return on equity of 45.91% and a negative net margin of 30.76%.The firm had revenue of $1.21 billion for the quarter, compared to the consensus estimate of $1.18 billion. During the same period in the previous year, the business earned $0.20 EPS. The firm’s revenue for the quarter was up 28.7% on a year-over-year basis. As a group, sell-side analysts forecast that Snowflake Inc. will post -2.36 earnings per share for the current year.

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.