Snowflake (NYSE:SNOW) Stock Price Down 3.4% – Here’s Why

Snowflake Inc. (NYSE:SNOW) fell 3.4% on Thursday . The stock traded as low as $169.19 and last traded at $172.67. 5,669,194 shares changed hands during trading, a decline of 5% from the average session volume of 5,985,683 shares. The stock had previously closed at $178.83.

Key Headlines Impacting Snowflake

Here are the key news stories impacting Snowflake this week:

• Positive Sentiment: Deepened OpenAI tie-up and new AI tools — market reacted strongly to the expanded OpenAI relationship and product announcements that position Snowflake as a platform for enterprise AI agents. Snowflake (SNOW) Is Up 8.2% After Deepening OpenAI Tie-Up And Unveiling New AI Tools – What’s Changed
• Positive Sentiment: Deal frames enterprise AI agent opportunity — coverage explains how the OpenAI tie-up could accelerate adoption of AI agents on Snowflake’s data cloud. Snowflake OpenAI Deal Puts Enterprise AI Agents At Center Stage
• Positive Sentiment: Analysts reaffirm bullish view on Snowflake’s AI strategy — analyst commentary supports the market’s positive reaction and may sustain increased investor interest. Analysts Reaffirm Bullish View on Snowflake Inc.’s (SNOW) AI Strategy
• Positive Sentiment: New commercial partnership with U.S. Figure Skating — expands Snowflake’s vertical use cases (athlete performance, fan engagement) and showcases go-to-market momentum. U.S. Figure Skating Elevates Athlete Development and Fan Engagement with Snowflake Intelligence
• Positive Sentiment: Notable buy by CNBC’s Amy Raskin — publicized insider/portfolio manager buying can be read as a vote of confidence. Trade Tracker: Amy Raskin buys more Cadence, Snowflake and Impinj
• Neutral Sentiment: Street rating remains constructive but measured — analysts give an average “Moderate Buy” rating, indicating continued conviction but not unanimous enthusiasm. Snowflake Inc. (NYSE:SNOW) Given Average Rating of “Moderate Buy” by Analysts
• Negative Sentiment: Johnson Fistel launches securities probe — law firm soliciting shareholders about potential claims could increase legal overhang and investor uncertainty. Snowflake Inc. (SNOW) Shareholders Are Encouraged to Reach Out to Johnson Fistel for More Information about Potentially Recovering Their Losses
• Negative Sentiment: Pomerantz begins investor investigation — a second law firm action raises the risk of litigation costs and management distraction. INVESTOR ALERT: Pomerantz Law Firm Investigates Claims On Behalf of Investors of Snowflake Inc. – SNOW
• Negative Sentiment: Recent share pullback noted by market commentary — short-term volatility and a recent decline vs. the market are reminders of execution and sentiment risks. Snowflake Inc. (SNOW) Registers a Bigger Fall Than the Market: Important Facts to Note

Wall Street Analyst Weigh In

SNOW has been the subject of several recent analyst reports. Jefferies Financial Group set a $300.00 price objective on Snowflake in a research report on Monday, November 24th. Needham & Company LLC reissued a “buy” rating and issued a $280.00 target price on shares of Snowflake in a report on Thursday, December 4th. The Goldman Sachs Group decreased their price target on shares of Snowflake from $286.00 to $246.00 and set a “buy” rating on the stock in a report on Wednesday. Morgan Stanley reissued an “overweight” rating and issued a $299.00 price objective on shares of Snowflake in a research note on Tuesday, January 27th. Finally, Guggenheim reaffirmed a “neutral” rating on shares of Snowflake in a research note on Wednesday, November 26th. Two analysts have rated the stock with a Strong Buy rating, thirty-four have assigned a Buy rating, four have given a Hold rating and three have given a Sell rating to the stock. According to data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and a consensus price target of $274.68.

Snowflake Trading Up 5.5%

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 $62.41 billion, a price-to-earnings ratio of -45.14 and a beta of 1.14. The business’s fifty day moving average price is $208.60 and its 200 day moving average price is $225.12.

Snowflake (NYSE:SNOW) last announced its earnings results on Wednesday, December 3rd. The company reported $0.35 earnings per share (EPS) 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 business had revenue of $1.21 billion during the quarter, compared to analyst estimates of $1.18 billion. During the same period last year, the company earned $0.20 EPS. Snowflake’s revenue for the quarter was up 28.7% compared to the same quarter last year. Research analysts anticipate that Snowflake Inc. will post -2.36 earnings per share for the current fiscal year.

Insider Buying and Selling

In related news, SVP Vivek Raghunathan sold 11,801 shares of the company’s stock in a transaction that occurred on Wednesday, December 31st. The stock was sold at an average price of $220.44, for a total value of $2,601,412.44. Following the sale, the senior vice president directly owned 218,020 shares in the company, valued at $48,060,328.80. This represents a 5.13% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, Director Michael L. Speiser sold 50,338 shares of the firm’s stock in a transaction that occurred 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 transaction, the director owned 32,756 shares of the company’s stock, valued at approximately $7,555,171.40. The trade was a 60.58% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold 613,681 shares of company stock valued at $130,573,518 in the last ninety days. Insiders own 6.80% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently made changes to their positions in the business. Vanguard Group Inc. increased its holdings in Snowflake by 5.1% in the fourth quarter. Vanguard Group Inc. now owns 30,095,687 shares of the company’s stock worth $6,601,790,000 after purchasing an additional 1,448,094 shares in the last quarter. Jennison Associates LLC increased its stake in shares of Snowflake by 27.7% in the 4th quarter. Jennison Associates LLC now owns 11,603,302 shares of the company’s stock valued at $2,545,300,000 after acquiring an additional 2,519,413 shares in the last quarter. State Street Corp lifted its position in shares of Snowflake by 1.4% during the 2nd quarter. State Street Corp now owns 6,887,073 shares of the company’s stock valued at $1,541,120,000 after acquiring an additional 94,293 shares during the period. Nuveen LLC boosted its stake in Snowflake by 2.3% during the fourth quarter. Nuveen LLC now owns 5,277,851 shares of the company’s stock worth $1,157,749,000 after acquiring an additional 116,521 shares in the last quarter. Finally, Artisan Partners Limited Partnership boosted its stake in Snowflake by 15.2% during the second quarter. Artisan Partners Limited Partnership now owns 4,951,715 shares of the company’s stock worth $1,108,045,000 after acquiring an additional 652,485 shares in the last quarter. 65.10% of the stock is owned by institutional investors and hedge funds.

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.