Snowflake (NYSE:SNOW) Trading Down 2.2% – Time to Sell?

Snowflake Inc. (NYSE:SNOW)’s share price traded down 2.2% during trading on Friday . The company traded as low as $218.20 and last traded at $218.7950. 4,636,555 shares traded hands during mid-day trading, an increase of 9% from the average session volume of 4,258,738 shares. The stock had previously closed at $223.79.

Snowflake News Roundup

Here are the key news stories impacting Snowflake this week:

• Positive Sentiment: Snowflake’s expanded AI portfolio and deeper cloud partnerships are being highlighted as drivers of strong revenue growth and positioning the company as central to enterprise AI — a tailwind for long-term demand. SNOW’s Robust Portfolio Fuels Revenue Growth
• Positive Sentiment: Snowflake announced a deal to acquire Observe — an AI/observability platform built on Snowflake — in a transaction reported around $1B. Management says the deal accelerates AIops and observability features (helps troubleshoot AI agents and apps), which could expand product stickiness and cross-sell opportunities. The acquisition is subject to customary closing conditions; the purchase price and integration execution will be watched closely. Snowflake announces intent to buy Observe The Numbers Behind Snowflake’s $1 Billion Acquisition
• Positive Sentiment: Recent analyst support: Argus upgraded SNOW to Buy with a $300 target and Raymond James reiterated/assigned Outperform, reinforcing optimism about Snowflake’s transition from data warehouse to AI platform — analyst upgrades can boost sentiment and attract flows. (Coverage noted in market reports.)
• Neutral Sentiment: Last reported results showed a revenue beat and continued high growth (revenue up ~29% year/year and an EPS beat in early December), supporting the narrative of strong enterprise traction — but profitability remains negative and is being closely scrutinized by the market.
• Negative Sentiment: An executive (EVP) sold about $2.2M of SNOW stock, which can be interpreted by some investors as a near-term negative signal about insider confidence or a simple liquidity/portfolio move. EVP Stock Sale
• Negative Sentiment: Valuation and profitability concerns remain loud in the market — commentary argues Snowflake’s “profitability pivot” could trade off growth investments, and some analysts urge caution despite AI tailwinds. Those critiques can pressure the shares as investors weigh growth vs margin expansion. Profitability Pivot May Be A Trap
• Negative Sentiment: SNOW has shown intra-session weakness recently while the broader market gained, indicating short-term profit-taking or rotation into other AI names; watch volume and whether the stock holds near its 200-day SMA for technical support. SNOW Stock Dips While Market Gains

Wall Street Analysts Forecast Growth

Several research analysts have issued reports on SNOW shares. Weiss Ratings reissued a “sell (d-)” rating on shares of Snowflake in a research report on Wednesday, October 8th. Scotiabank reiterated an “outperform” rating on shares of Snowflake in a research note on Thursday, December 4th. Stifel Nicolaus boosted their price target on Snowflake from $260.00 to $280.00 and gave the company a “buy” rating in a research report on Thursday, December 4th. Argus raised Snowflake from a “hold” rating to a “buy” rating and set a $300.00 price objective for the company in a research report on Thursday. Finally, Needham & Company LLC reiterated a “buy” rating and issued a $280.00 target price 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-six have issued a Buy rating, three have assigned a Hold rating and three have given a Sell rating to the company. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and an average price target of $275.97.

Snowflake Price Performance

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 fifty day simple moving average of $239.82 and a two-hundred day simple moving average of $229.03. The company has a market cap of $74.87 billion, a PE ratio of -54.16 and a beta of 1.14.

Snowflake (NYSE:SNOW) last posted its quarterly earnings results on Wednesday, December 3rd. The company reported $0.35 EPS for the quarter, beating 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 business had revenue of $1.21 billion during the quarter, compared to analysts’ expectations of $1.18 billion. During the same period last year, the firm earned $0.20 EPS. The company’s quarterly revenue was up 28.7% compared to the same quarter last year. On average, equities analysts predict that Snowflake Inc. will post -2.36 EPS for the current fiscal year.

Insider Activity at Snowflake

In other news, EVP Christian Kleinerman sold 10,000 shares of the stock in a transaction dated Friday, January 2nd. The shares were sold at an average price of $219.90, for a total value of $2,199,000.00. Following the completion of the transaction, the executive vice president owned 471,351 shares in the company, valued at $103,650,084.90. This trade represents a 2.08% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, SVP Vivek Raghunathan sold 11,801 shares of the business’s stock in a transaction dated Wednesday, December 31st. The stock was sold at an average price of $220.44, for a total transaction of $2,601,412.44. Following the sale, the senior vice president directly owned 218,020 shares in the company, valued at approximately $48,060,328.80. This represents a 5.13% decrease in their position. The SEC filing for this sale provides additional information. In the last ninety days, insiders sold 418,681 shares of company stock worth $96,073,145. 6.80% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Snowflake

A number of institutional investors and hedge funds have recently modified their holdings of the company. Total Clarity Wealth Management Inc. raised its holdings in Snowflake by 2.7% during the third quarter. Total Clarity Wealth Management Inc. now owns 1,508 shares of the company’s stock worth $340,000 after purchasing an additional 40 shares during the last quarter. Diligent Investors LLC grew its holdings in Snowflake by 0.9% in the third quarter. Diligent Investors LLC now owns 4,594 shares of the company’s stock valued at $1,036,000 after purchasing an additional 40 shares during the last quarter. Coastline Trust Co increased its position in shares of Snowflake by 1.0% in the third quarter. Coastline Trust Co now owns 4,183 shares of the company’s stock valued at $943,000 after buying an additional 42 shares in the last quarter. Capital Advantage Inc. raised its stake in shares of Snowflake by 1.1% during the 2nd quarter. Capital Advantage Inc. now owns 4,412 shares of the company’s stock worth $987,000 after buying an additional 48 shares during the last quarter. Finally, Wedbush Securities Inc. boosted its position in shares of Snowflake by 1.3% in the 2nd quarter. Wedbush Securities Inc. now owns 3,717 shares of the company’s stock worth $832,000 after buying an additional 48 shares in the last quarter. Institutional investors and hedge funds own 65.10% of the company’s stock.

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.