UBS Group Forecasts Strong Price Appreciation for Snowflake (NYSE:SNOW) Stock

Snowflake (NYSE:SNOW) had its price objective upped by stock analysts at UBS Group from $425.00 to $500.00 in a note issued to investors on Thursday, Benzinga reports. The firm presently has a “buy” rating on the stock. UBS Group’s price objective suggests a potential upside of 35.06% from the stock’s previous close.

SNOW has been the topic of several other reports. Guggenheim reissued a “neutral” rating on shares of Snowflake in a research note on Thursday. Benchmark increased their price objective on shares of Snowflake from $290.00 to $360.00 and gave the stock a “buy” rating in a research report on Tuesday, August 25th. Wells Fargo & Company upped their price target on shares of Snowflake from $500.00 to $525.00 and gave the company an “overweight” rating in a report on Thursday. Citigroup boosted their target price on shares of Snowflake from $320.00 to $395.00 and gave the company a “buy” rating in a research note on Wednesday, August 26th. Finally, BTIG Research boosted their price objective on Snowflake from $340.00 to $424.00 and gave the company a “buy” rating in a research report on Thursday. Thirty-four investment analysts have rated the stock with a Buy rating, five have assigned a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, the company has a consensus rating of “Moderate Buy” and a consensus price target of $390.49.

Snowflake Stock Up 21.0%

Snowflake stock traded up $64.36 during mid-day trading on Thursday, hitting $370.19. The company had a trading volume of 9,741,491 shares, compared to its average volume of 6,771,195. The business has a fifty day moving average of $293.26 and a 200 day moving average of $218.27. Snowflake has a 1 year low of $118.30 and a 1 year high of $384.56. The company has a quick ratio of 1.05, a current ratio of 1.05 and a debt-to-equity ratio of 1.18. The stock has a market cap of $128.31 billion, a price-to-earnings ratio of -105.24 and a beta of 1.33.

Snowflake (NYSE:SNOW) last released its quarterly earnings data on Wednesday, September 2nd. The company reported $0.62 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.45 by $0.17. The company had revenue of $1.55 billion during the quarter, compared to the consensus estimate of $1.48 billion. Snowflake had a negative net margin of 23.79% and a negative return on equity of 50.50%. Snowflake’s revenue for the quarter was up 35.1% on a year-over-year basis. During the same quarter in the prior year, the firm posted $0.35 earnings per share. On average, sell-side analysts expect that Snowflake will post -1.81 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other news, EVP Christian Kleinerman sold 25,000 shares of the company’s stock in a transaction dated Friday, August 7th. The stock was sold at an average price of $325.00, for a total value of $8,125,000.00. Following the completion of the sale, the executive vice president directly owned 340,379 shares of the company’s stock, valued at $110,623,175. This represents a 6.84% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Frank Slootman sold 289,685 shares of the business’s stock in a transaction dated Monday, July 20th. The stock was sold at an average price of $274.39, for a total transaction of $79,486,667.15. Following the sale, the director directly owned 28,535 shares in the company, valued at $7,829,718.65. This trade represents a 91.03% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last quarter, insiders have sold 1,156,901 shares of company stock valued at $321,725,352. 4.80% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently bought and sold shares of SNOW. California State Teachers Retirement System lifted its stake in shares of Snowflake by 25,944.6% in the second quarter. California State Teachers Retirement System now owns 127,340,602 shares of the company’s stock worth $32,408,183,000 after buying an additional 126,851,670 shares in the last quarter. Nuveen LLC boosted its holdings 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 buying an additional 116,521 shares in the last quarter. Geode Capital Management LLC raised its stake in Snowflake by 5.5% in the 4th quarter. Geode Capital Management LLC now owns 4,809,689 shares of the company’s stock valued at $1,052,195,000 after purchasing an additional 249,668 shares during the last quarter. Norges Bank acquired a new position in shares of Snowflake in the 4th quarter valued at $974,091,000. Finally, Janus Henderson Group PLC raised its holdings in shares of Snowflake by 22.2% during the 1st quarter. Janus Henderson Group PLC now owns 2,997,385 shares of the company’s stock valued at $452,014,000 after buying an additional 544,960 shares during the period. 65.10% of the stock is currently owned by hedge funds and other institutional investors.

Trending Headlines about Snowflake

Here are the key news stories impacting Snowflake this week:

• Positive Sentiment: Snowflake reported adjusted earnings of $0.62 per share, above the $0.45 consensus estimate, while revenue reached $1.55 billion, exceeding expectations of $1.48 billion and increasing 35% year over year. Reuters: Snowflake shares surge as AI demand powers growth and lifts outlook
• Positive Sentiment: Management raised fiscal 2027 product-revenue guidance to $6.07 billion, citing stronger-than-expected AI demand. Product revenue grew 37%, and adoption of AI offerings including the CoCo coding agent and Cortex helped reinforce the company’s AI-growth narrative. CNBC: Snowflake spikes on healthy results and AI coding momentum
• Positive Sentiment: Several analysts raised their price targets and adopted bullish ratings after the results. Targets include $424 from BTIG, $450 from DA Davidson, Canaccord and Monness Crespi & Hardt, and $488 from Citizens JMP, with ratings ranging from “buy” to “market outperform.”
• Neutral Sentiment: Snowflake’s selection by Sayari to rebuild its Commercial World Model supports the platform’s enterprise-data and AI positioning. Sayari expects the migration to reduce its data-infrastructure costs by more than 50%, although the announcement is unlikely to materially affect near-term financial results. PR Newswire: Sayari selects Snowflake
• Negative Sentiment: Management lowered fiscal 2027 gross-margin guidance to 74%, a further 100-basis-point reduction, warning that expanding AI workloads are increasing costs. This raises questions about how efficiently Snowflake can monetize rapid AI usage. Seeking Alpha: Snowflake’s hidden warning in Q2
• Negative Sentiment: At an elevated valuation, Snowflake remains exposed to disappointment if AI growth slows or margins deteriorate. Persistent GAAP losses, stock-based compensation dilution, and substantial short interest add volatility and may explain why the stock has decreased despite strong results.

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.