Snowflake (NYSE:SNOW) Shares Down 2.7% on Analyst Downgrade

Snowflake Inc. (NYSE:SNOW) dropped 2.7% during trading on Friday after JPMorgan Chase & Co. lowered their price target on the stock from $268.00 to $245.00. JPMorgan Chase & Co. currently has an overweight rating on the stock. Snowflake traded as low as $163.77 and last traded at $168.4230. Approximately 10,236,184 shares were traded during mid-day trading, an increase of 53% from the average daily volume of 6,680,042 shares. The stock had previously closed at $173.06.

Several other brokerages also recently issued reports on SNOW. DA Davidson lowered their price objective on shares of Snowflake from $300.00 to $250.00 and set a “buy” rating on the stock in a research note on Thursday. BTIG Research decreased their price target on shares of Snowflake from $312.00 to $235.00 and set a “buy” rating on the stock in a research report on Monday, February 23rd. Rosenblatt Securities restated a “buy” rating and set a $275.00 price objective on shares of Snowflake in a report on Thursday. The Goldman Sachs Group reduced their target price on shares of Snowflake from $286.00 to $246.00 and set a “buy” rating for the company in a research note on Wednesday, February 11th. Finally, Wedbush restated an “outperform” rating and set a $270.00 price target on shares of Snowflake in a research note on Thursday, December 4th. Two investment analysts have rated the stock with a Strong Buy rating, thirty-three have issued a Buy rating, four have issued a Hold rating and three have assigned a Sell rating to the stock. According to data from MarketBeat, Snowflake presently has an average rating of “Moderate Buy” and an average target price of $248.58.

Insider Buying and Selling

In other Snowflake news, Director Michael L. Speiser sold 50,338 shares of the stock in a transaction on Friday, December 5th. The stock was sold at an average price of $230.65, for a total transaction of $11,610,459.70. Following the completion of the transaction, the director directly owned 32,756 shares in the company, valued at $7,555,171.40. This represents a 60.58% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, Director Frank Slootman sold 200,000 shares of Snowflake stock in a transaction on Thursday, December 18th. The shares were sold at an average price of $221.83, for a total value of $44,366,000.00. Following the transaction, the director directly owned 50,329 shares of the company’s stock, valued at approximately $11,164,482.07. The trade was a 79.89% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last quarter, insiders sold 713,681 shares of company stock valued at $148,264,518. 6.80% of the stock is currently owned by corporate insiders.

Key Headlines Impacting Snowflake

Here are the key news stories impacting Snowflake this week:

• Positive Sentiment: Q4 beat and healthy demand: Snowflake reported ~30% y/y revenue growth and an EPS beat, with improving cash flow and strong customer metrics that underpin medium‑term revenue momentum. Snowflake Stock Surges After Q4 Revenue Jumps 30%, EPS Tops Estimates
• Positive Sentiment: AI positioning and market opportunity: Management highlighted agentic AI capabilities, partnerships (OpenAI/Anthropic integrations) and accelerating enterprise AI adoption — including faster growth in India — supporting a durable addressable market for Snowflake’s data cloud. Snowflake sees high levels of AI adoption among India Inc; country growth faster than global
• Positive Sentiment: Market technical/bull case: Some analysts and MarketBeat argue the sell‑off is overdone, institutions have been accumulating, and Snowflake’s cross‑cloud data position makes it central to AI workflows — a potential catalyst for a recovery. Is Snowflake’s Stock Meltdown Over? Signs Point to a Bottom
• Neutral Sentiment: Analyst repositioning: Many firms kept Buy/Overweight ratings but trimmed price targets after the quarter (UBS, Morgan Stanley, JPMorgan, Canaccord, etc.), leaving a mix of upside potential and reduced near‑term analyst support. These Analysts Slash Their Forecasts On Snowflake After Q4 Results
• Negative Sentiment: Mixed outlook disappointed some investors: Management’s FY27 product revenue guide (~27%) was viewed as conservative relative to some buyside expectations, contributing to a share pullback despite the beat. Snowflake’s stock dips as the software company gives a mixed outlook
• Negative Sentiment: Rising legal risk: Multiple law firms and class‑action notices were filed or publicized this week, creating legal overhang and increasing near‑term uncertainty for shareholders. Deadlines for lead‑plaintiff filings are being emphasized. Bronstein, Gewirtz & Grossman LLC Urges Snowflake Inc. Investors to Act: Class Action Filed
• Negative Sentiment: Profitability concerns persist: Commentary (e.g., Motley Fool) notes that while growth is strong, durable GAAP profitability remains elusive — a point that keeps some investors sidelined despite the AI narrative. Why I’m Still Not Buying Snowflake Stock

Hedge Funds Weigh In On Snowflake

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. MidFirst Bank acquired a new stake in shares of Snowflake during the fourth quarter worth approximately $132,000. Pacer Advisors Inc. grew its position in Snowflake by 73.9% during the 4th quarter. Pacer Advisors Inc. now owns 33,923 shares of the company’s stock worth $7,441,000 after acquiring an additional 14,416 shares during the last quarter. Virtu Financial LLC bought a new stake in Snowflake during the 4th quarter worth approximately $1,706,000. Copos Capital S.a r.l. acquired a new stake in Snowflake during the 4th quarter valued at $35,000. Finally, MV Capital Management Inc. bought a new position in Snowflake in the 4th quarter valued at $32,000. 65.10% of the stock is currently owned by institutional investors and hedge funds.

Snowflake Trading Down 2.7%

The business has a 50 day simple moving average of $198.95 and a 200 day simple moving average of $222.78. The company has a debt-to-equity ratio of 1.07, a current ratio of 1.37 and a quick ratio of 1.37. The company has a market cap of $57.63 billion, a price-to-earnings ratio of -42.64 and a beta of 1.14.

Snowflake (NYSE:SNOW) last announced its earnings results on Wednesday, February 25th. The company reported $0.32 earnings per share for the quarter, beating analysts’ consensus estimates of $0.27 by $0.05. The company had revenue of $1.28 billion during the quarter, compared to analyst estimates of $1.25 billion. Snowflake had a negative return on equity of 48.50% and a negative net margin of 28.43%.The firm’s quarterly revenue was up 30.1% compared to the same quarter last year. During the same period last year, the company posted $0.30 earnings per share. As a group, equities analysts forecast that Snowflake Inc. will post -2.36 EPS for the current year.

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.