The stock price of Snowflake Inc (NYSE: SNOW) has jumped by 2.22 compared to previous close of 173.70. Despite this, the company has seen a gain of 3.62% in its stock price over the last five trading days. seekingalpha.com reported 2024-11-26 that Snowflake Inc.’s stock surged post-FQ3 earnings but remains overvalued based on limited AI revenue and decelerating growth. The company is only targeting 23% YoY growth in FQ4 despite the investor excitement. The stock’s rally is driven by AI hype and multiple expansions, pushing the valuation similar to pre-IPO Databricks with up to double the growth rates.
Is It Worth Investing in Snowflake Inc (NYSE: SNOW) Right Now?
The stock has a 36-month beta value of 1.00. Opinions on the stock are mixed, with 22 analysts rating it as a “buy,” 10 as “overweight,” 14 as “hold,” and 1 as “sell.”
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The public float for SNOW is 309.91M, and at present, short sellers hold a 4.26% of that float. On November 29, 2024, the average trading volume of SNOW was 7.10M shares.
SNOW’s Market Performance
SNOW stock saw an increase of 3.62% in the past week, with a monthly gain of 49.22% and a quarterly increase of 55.44%. The volatility ratio for the week is 5.37%, and the volatility levels for the last 30 days are 3.74% for Snowflake Inc (SNOW). The simple moving average for the last 20 days is 28.38% for SNOW’s stock, with a simple moving average of 26.22% for the last 200 days.
Analysts’ Opinion of SNOW
Many brokerage firms have already submitted their reports for SNOW stocks, with Wedbush repeating the rating for SNOW by listing it as a “Outperform.” The predicted price for SNOW in the upcoming period, according to Wedbush is $190 based on the research report published on November 25, 2024 of the current year 2024.
Monness Crespi & Hardt, on the other hand, stated in their research note that they expect to see SNOW reach a price target of $188, previously predicting the price at $140. The rating they have provided for SNOW stocks is “Buy” according to the report published on November 21st, 2024.
Monness Crespi & Hardt gave a rating of “Buy” to SNOW, setting the target price at $140 in the report published on November 06th of the current year.
SNOW Trading at 42.08% from the 50-Day Moving Average
After a stumble in the market that brought SNOW to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -25.31% of loss for the given period.
Volatility was left at 3.74%, however, over the last 30 days, the volatility rate increased by 5.37%, as shares surge +54.30% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading +55.38% upper at present.
During the last 5 trading sessions, SNOW rose by +3.39%, which changed the moving average for the period of 200-days by -24.93% in comparison to the 20-day moving average, which settled at $138.28. In addition, Snowflake Inc saw -10.78% in overturn over a single year, with a tendency to cut further losses.
Insider Trading
Reports are indicating that there were more than several insider trading activities at SNOW starting from Dageville Benoit, who proposed sale 12,500 shares at the price of $174.94 back on Nov 29 ’24. After this action, Dageville Benoit now owns shares of Snowflake Inc, valued at $2,186,812 using the latest closing price.
Ho Emily, the Chief Accounting Officer of Snowflake Inc, sale 2,021 shares at $173.68 during a trade that took place back on Nov 25 ’24, which means that Ho Emily is holding 26,874 shares at $350,997 based on the most recent closing price.
Stock Fundamentals for SNOW
Current profitability levels for the company are sitting at:
- -0.39 for the present operating margin
- 0.67 for the gross margin
The net margin for Snowflake Inc stands at -0.33. The total capital return value is set at -0.24. Equity return is now at value -28.69, with -14.58 for asset returns.
Based on Snowflake Inc (SNOW), the company’s capital structure generated 0.46 points at debt to capital in total, while cash flow to debt ratio is standing at 0.34. The debt to equity ratio resting at 0.87. The interest coverage ratio of the stock is 1951.87.
Currently, EBITDA for the company is -974.87 million with net debt to EBITDA at -0.35. When we switch over and look at the enterprise to sales, we see a ratio of 17.45. The receivables turnover for the company is 5.73for trailing twelve months and the total asset turnover is 0.42. The liquidity ratio also appears to be rather interesting for investors as it stands at 1.85.
Conclusion
To sum up, Snowflake Inc (SNOW) has seen a better performance recently. Analysts have differing views on the stock, with some seeing it as a “buy” and others as a “hold”. It is worth mentioning that the stock is currently trading in close proximity to its 50-day moving average and its 52-week high.
