Stocks of Snowflake Inc. (SNOW) are poised to climb above their peers

Snowflake Inc. (NYSE: SNOW) stock fell -3.00% on Tuesday to $145.79 against a previous-day closing price of $150.30. With 3.84 million shares changed hands, the volume of the stock remained lighter than its average volume of 5.42 million shares. During the session, the Software – Application company that operates in wider Technology sector, reached to the highest price of $152.76 whereas the lowest price it dropped to was $145.26. The 52-week range on SNOW shows that it touched its highest point at $329.49 and its lowest point at $110.26 during that stretch. It currently has a 1-year price target of $188.88.

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Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of SNOW was up-trending over the past week, with a rise of 0.05%, but this was down by -0.65% over a month. Three-month performance dropped to -17.68% while six-month performance rose 3.94%. The stock lost -45.51% in the past year, while it has gained 1.57% so far this year. A look at the trailing 12-month EPS for SNOW yields -2.28 with Next year EPS estimates of 0.52. For the next quarter, that number is 0.04. This implies an EPS growth rate of -20.90% for this year and 122.84% for next year.

Float and Shares Shorts:

At present, 320.13 million SNOW shares are outstanding with a float of 291.41 million shares on hand for trading. On Oct 13, 2022, short shares totaled 12.18 million, which was 3.81% higher than short shares on Sep 14, 2022. In addition to Mr. Frank Slootman as the firm’s Chairman, Pres & CEO, Dr. Benoit Dageville serves as its Co-Founder, Pres of Product Division & Director.

Institutional Ownership:

Through their ownership of 67.73% of SNOW’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 35.82% of SNOW, in contrast to 33.98% held by mutual funds. Shares owned by individuals account for 26.94%. As the largest shareholder in SNOW with 5.19% of the stake, The Vanguard Group, Inc. holds 16,695,037 shares worth 16,695,037. A second-largest stockholder of SNOW, Altimeter Capital Management LP, holds 15,369,459 shares, controlling over 4.78% of the firm’s shares. Iconiq Capital LLC is the third largest shareholder in SNOW, holding 14,422,870 shares or 4.49% stake. With a 2.57% stake in SNOW, the Vanguard Total Stock Market Index is the largest stakeholder. A total of 8,271,044 shares are owned by the mutual fund manager. The Vanguard Extended Market Index Fu, which owns about 1.16% of SNOW stock, is the second-largest Mutual Fund holder. It holds 3,725,788 shares valued at 534.8 million. American Funds AMCAP Fund holds 1.08% of the stake in SNOW, owning 3,467,123 shares worth 497.67 million.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for SNOW since 45 analysts follow the stock currently. There are 26 analysts who recommend BUY ratings, while 3 suggest SELL ratings. Of the remaining analysts, 13 believe that the stock is worth HOLDING, 3 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With SNOW analysts setting a high price target of $500.00 and a low target of $50.00, the average target price over the next 12 months is $182.11. Based on these targets, SNOW could surge 242.96% to reach the target high and fall by -65.7% to reach the target low. Reaching the average price target will result in a growth of 24.91% from current levels.

EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. SNOW will report FY 2023 earnings on 03/01/2023. Analysts have provided yearly estimates in a range of $0.32 being high and $0.12 being low. For SNOW, this leads to a yearly average estimate of $0.21. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Snowflake Inc. surprised analysts by $0.06 when it reported $0.11 EPS against a consensus estimate of $0.05. The surprise factor in the prior quarter was $0.02. Based on analyst estimates, the high estimate for the next quarter is $0.19 and the low estimate is $0.01. The average estimate for the next quarter is thus $0.05.

Summary of Insider Activity:

Insiders traded SNOW stock several times over the past three months with 2 Buys and 11 Sells. In these transactions, 204,592 shares were bought while 205,097 shares were sold. The number of buy transactions has increased to 16 while that of sell transactions has risen to 31 over the past year. The total number of shares bought during that period was 334,999 while 1,214,307 shares were sold.

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