Snowflake (NYSE:SNOW) Stock Rating Lowered by Zacks Research

Snowflake (NYSE:SNOW) was downgraded by equities researchers at Zacks Research from a “hold” rating to a “strong sell” rating in a research note issued on Tuesday,Zacks.com reports.

Other research analysts also recently issued research reports about the stock. Sanford C. Bernstein reiterated a “market perform” rating and issued a $237.00 price target on shares of Snowflake in a research note on Thursday, December 4th. Robert W. Baird upped their price target on Snowflake from $260.00 to $270.00 and gave the company an “outperform” rating in a report on Thursday, December 4th. Cantor Fitzgerald increased their price target on shares of Snowflake from $275.00 to $278.00 and gave the company an “overweight” rating in a research note on Thursday, December 4th. Macquarie boosted their price objective on shares of Snowflake from $235.00 to $250.00 and gave the stock a “neutral” rating in a research report on Thursday, December 4th. Finally, Argus upgraded shares of Snowflake from a “hold” rating to a “buy” rating and set a $300.00 target price for the company in a report on Thursday, January 8th. Two equities research analysts have rated the stock with a Strong Buy rating, thirty-four have issued a Buy rating, four have assigned a Hold rating and four have given a Sell rating to the company’s stock. Based on data from MarketBeat, Snowflake has a consensus rating of “Moderate Buy” and a consensus price target of $275.58.

Snowflake Trading Down 5.3%

NYSE:SNOW traded down $8.74 on Tuesday, reaching $156.55. 7,856,363 shares of the company’s stock were exchanged, compared to its average volume of 5,566,296. 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 $53.57 billion, a price-to-earnings ratio of -38.75 and a beta of 1.14. The business has a fifty day moving average of $219.07 and a 200-day moving average of $227.23. Snowflake has a 52-week low of $120.10 and a 52-week high of $280.67.

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

Insider Activity

In other Snowflake news, EVP Christian Kleinerman sold 10,000 shares of the business’s stock in a transaction on Monday, December 1st. The shares were sold at an average price of $249.53, for a total transaction of $2,495,300.00. Following the sale, the executive vice president directly owned 512,450 shares in the company, valued at approximately $127,871,648.50. The trade was a 1.91% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Frank Slootman sold 200,000 shares of the company’s stock in a transaction on Thursday, December 18th. The stock was sold at an average price of $221.83, for a total transaction of $44,366,000.00. Following the transaction, the director directly owned 50,329 shares in the company, valued at approximately $11,164,482.07. This trade represents a 79.89% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last ninety days, insiders sold 613,681 shares of company stock valued at $135,245,745. Company insiders own 6.80% of the company’s stock.

Hedge Funds Weigh In On Snowflake

Several hedge funds have recently bought and sold shares of SNOW. Sumitomo Mitsui Trust Group Inc. lifted its holdings in shares of Snowflake by 1.1% in 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 period. OVERSEA CHINESE BANKING Corp Ltd bought a new stake in Snowflake in the second quarter worth about $6,845,000. Federated Hermes Inc. lifted its holdings in Snowflake by 13.5% in the 3rd quarter. Federated Hermes Inc. now owns 408,037 shares of the company’s stock valued at $92,047,000 after acquiring an additional 48,411 shares during the last quarter. Penserra Capital Management LLC lifted 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 valued at $34,586,000 after acquiring an additional 37,911 shares during the last quarter. Finally, Rheos Capital Works Inc. boosted its position in shares of Snowflake by 102.9% during the 3rd quarter. Rheos Capital Works Inc. now owns 207,000 shares of the company’s stock valued at $46,689,000 after purchasing an additional 105,000 shares in the last quarter. Hedge funds and other institutional investors own 65.10% of the company’s stock.

Key Snowflake News

Here are the key news stories impacting Snowflake this week:

• Positive Sentiment: Snowflake announced a multi‑year, roughly $200M partnership with OpenAI to embed advanced models into Snowflake’s platform — a revenue opportunity if customers run models on Snowflake data and pay for compute/consumption. OpenAI partnership
• Positive Sentiment: Enterprise adoption example — United Rentals has rolled out a Snowflake‑built Business Intelligence AI agent across 1,600+ branches, showing near‑term real customer use of Snowflake Intelligence that could increase consumption. United Rentals deployment
• Positive Sentiment: New AI product moves (Cortex Code, Semantic View Autopilot, Postgres integrations) broaden use cases and reduce friction for customers — strategically supportive of longer‑term consumption growth if execution follows through. Fool on Snowflake product momentum
• Neutral Sentiment: Market commentary is mixed: analysts and stories acknowledge the strategic logic of model partnerships but emphasize investors want clear evidence of profitable consumption growth rather than press releases. Market analysis on OpenAI deal
• Negative Sentiment: Zacks Research downgraded Snowflake from “hold” to “strong sell” — a fresh sell‑side hit that can accelerate outflows and push momentum traders to reduce exposure. Zacks downgrade
• Negative Sentiment: Johnson Fistel announced an investigation into whether Snowflake or its officers complied with securities laws — legal/settlement risk increases uncertainty and can pressure the stock until resolved. Johnson Fistel investigation notice
• Negative Sentiment: Insider selling: EVP Christian Kleinerman disclosed a sale of 10,000 shares — insider sales can be interpreted as added near‑term supply and raise short‑term concern even if not uncommon. SEC Form 4 — Kleinerman sale
• Negative Sentiment: Overall price action: analysts and reports note SNOW is falling more than the broader market amid profit‑taking and skepticism about near‑term margins if customers run large models — that dynamic is amplifying the move lower. Zacks on SNOW downside

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.