Snowflake Inc. (SNOW): Technicals Say You should Hold


Snowflake Inc. (NYSE:SNOW) saw an upside of 3.78% to close Monday at $150.30 after adding $5.48 on the day. The 5-day average trading volume is 4,627,520 shares of the company’s common stock. It has gained $150.92 in the past week and touched a new high 3 times within the past 5 days. An average of 4,658,060 shares of the company has been traded in the last 20 days, and the 50-day average volume stands at 5,372,758.

SNOW’s 1-month performance is 6.44% or $11.81 on its low of $119.27 reached on 01/06/23. The company’s shares have touched a 52-week low of $110.26 and high of $329.49, with the stock’s rally to the 52-week high happening on 01/23/23. YTD, SNOW has achieved 4.71% or $6.76 and has reached a new high 2 times. However, the current price is down -54.38% from the 52-week high price.

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Insider Transactions

SNOW stock investors last saw insider trading activity on Dec 13.Scarpelli Michael (Chief Financial Officer) most recently sold 200,000 shares at $151.76 per share on Dec 13. This transaction cost the insider $30,351,310. CEO and Chairman, Slootman Frank, sold 1,311 shares at a price of $142.59 on Dec 09. Then, on Dec 09, President of Products Dageville Benoit sold 724 shares at a price of $142.59 per share. This transaction amounted to $103,235.

Valuation Metrics

Moving on to other valuation ratios, the trailing price-to-sales (P/S) ratio is 24.26 while the price-to-book (PB) in the most recent quarter is 8.89, with the price to cash flow ratio at 117.74.

Snowflake Inc.’s quick ratio for the period ended July 30 was 3.10, with the current ratio over the same period at 3.10. In terms of profitability, the gross margin trailing 12 months is 65.30%. The firm’s gross profit as reported stood at $760.89 million against revenue of $1.22 billion.

Earnings Surprise

For the quarterly period ending July 30 this year, Snowflake Inc.’s cash and short-term investments amounted to $3.12 billion against total debt of $241.76 million. Net income and sales went up compared to those figures reported in the previous quarter. Net income grew 22.93% to -$200.94 million, while revenue of -$222.81 million was -10.88% off the previous quarter. Analysts expected SNOW to announce -$0.01 per share in earnings in its latest quarter, but it posted $0.01, representing a 200.00% surprise. EBITDA for the quarter stood at more than -$174.31 million. SNOW stock balance sheet for the quarter ending July 30 shows that total liabilities totaled 1.73 billion, with total debt at $241.76 million. Shareholders hold equity totaling $321.6 million.

Let’s look briefly at Snowflake Inc. (SNOW) price momentum from a technical analysis perspective. The 9-day relative strength index as at close on 23 January was 62.55% to suggest the stock is trending Neutral, with historical volatility in this time period at 51.46%.

The stock’s 5-day moving average is $143.24, reflecting a +6.69% or $9.43 change from its current price. SNOW is currently trading +2.42% above its 20-day SMA, -19.38% above its 100-day SMA. However, the stock’s current price level is away from the SMA50 by +16.37% and SMA200 by-33.81%.

Stochastic %K and %D was 78.92% and 72.94% and the average true range (ATR) pointed at 7.38. The RSI (14) points at 57.74%, while the 14-day stochastic is at 98.04% with the period’s ATR at 7.60. The stock’s 9-day MACD Oscillator is pointing at 1.58 and 6.11 on the 14-day charts.

Analyst Ratings

In the most recent analyst report for Snowflake Inc. (NYSE: SNOW), Wells Fargo launched coverage with an Overweight rating. Analysts offering their rating for SNOW stock have a consensus rating for the stock as Overweight. Currently, 3 brokerage advisors rate SNOW as a “sell,”, while 13 advise that investors “Hold.” 0 analysts have rated the stock as underweight. 3 rates the stock as overweight while 26 have offered a “buy” rating.

What is SNOW’s price target for the next 12 months?

Analysts have a consensus price target ranging from a low of $50.00 and a high of $500.00, with their median price target at $180.00. Looking at these predictions, the average price target given by analysts is for Snowflake Inc. (SNOW) stock is $182.11.


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