Snowflake director Slootman sells over $270k in company stock By Investing.com

Snowflake Inc . (NYSE:) director Frank Slootman has recently sold a portion of his holdings in the company, according to the latest Form 4 filing with the Securities and Exchange Commission. The transactions, which occurred on June 18, 2024, involved the sale of 1,890 shares of Class A Common Stock at prices ranging from $127.117 to $130.102, resulting in a total value of over $270,000.

The sales were conducted under a pre-arranged 10b5-1 trading plan, which allows company insiders to sell shares at predetermined times to avoid any accusations of insider trading. The plan had been adopted by Slootman on September 25, 2023. The sold shares were part of a larger holding of Snowflake stock by Slootman, who still retains a significant number of shares following these transactions.

The transactions were broken down into multiple parts with varying average prices. On June 18, Slootman sold 1,065 shares at an average price of $127.117, 245 shares at $127.764, 256 shares at $128.998, and 574 shares at $130.102. The sales were made in multiple transactions at prices within these ranges.

In addition to the sales, the filing also reported that shares were withheld to satisfy tax withholding obligations upon the vesting of restricted stock units on June 17. This transaction was not a market sale but rather an automatic conversion to cover tax liabilities, involving 1,498 shares at a price of $130.67, amounting to a total of $195,743.

Following these transactions, Slootman’s direct ownership in Snowflake Inc. stands at 226,889 shares. Additionally, he has indirect ownership through various trusts and a foundation, as detailed in the footnotes of the Form 4 filing. These include shares held by the Slootman Grandchildren’s Trust, the Slootman Living Trust, the Slootman Family Foundation, and the Slootman 2023 Grantor Retained Annuity Trust.

Investors often monitor insider sales for insights into executive confidence in the company’s prospects. However, it should be noted that trading plans like the one Slootman has in place are typically set up to allow insiders to gradually diversify their investment portfolio and can be scheduled far in advance, independent of the current market conditions or company performance.

In other recent news, Snowflake Inc. has been the subject of various analyst evaluations and has made significant strides in the data cloud market. UBS and BofA Securities maintained a neutral stance on the company, addressing potential impacts of a recent security incident. The firms believe the financial impact from potential refunds will likely be minimal. Snowflake has also been actively addressing these security concerns.

Several firms reaffirmed their confidence in Snowflake. Goldman Sachs maintained a Buy rating, highlighting Snowflake’s potential in the Generation AI space. Piper Sandler reiterated its Overweight rating, emphasizing positive feedback from large enterprise customers. Mizuho maintained a Buy rating but adjusted the price target to $180, acknowledging Snowflake’s strategic direction and clear blueprint for growth. RBC Capital Markets reduced its price target for Snowflake to $183, maintaining an Outperform rating.

In terms of product development, Snowflake has launched a suite of new AI development tools and announced the launch of Polaris (NYSE:) Catalog, an open catalog for Apache Iceberg. These advancements underscore Snowflake’s commitment to innovation and strategic positioning within the data cloud market. The recent developments reflect the company’s ongoing efforts to navigate the challenges posed by competitors and security concerns.

InvestingPro Insights

As Snowflake Inc. (NYSE:SNOW) navigates the current market, recent insider activity has caught the attention of investors. The company’s financial health and stock performance are key areas of focus. Snowflake’s market capitalization currently stands at $42.37 billion, reflecting the company’s substantial size in the cloud computing sector. Despite a challenging environment, Snowflake has maintained a strong balance sheet, holding more cash than debt, which is a positive signal for investors concerned about the company’s financial stability.

An important metric that investors often consider is the Price/Earnings (P/E) ratio, which for Snowflake stands at -44.81. This negative P/E ratio indicates that the company has not been profitable over the last twelve months. Additionally, the stock has been trading near its 52-week low, which might attract investors looking for potential bargains in the technology sector. However, it’s worth noting that 30 analysts have revised their earnings downwards for the upcoming period, which suggests that the market is anticipating some headwinds for Snowflake’s financial performance.

For those considering an investment in Snowflake, the company’s revenue growth remains robust at 32.85% over the last twelve months as of Q1 2025. This indicates that despite profitability challenges, the company is still expanding its top-line figures at an impressive rate. Moreover, Snowflake’s liquid assets exceed its short-term obligations, which could provide some reassurance to investors about the company’s ability to meet its immediate financial liabilities.

To gain deeper insights and access more InvestingPro Tips, such as Snowflake’s trading at a high revenue valuation multiple or analysts’ predictions of profitability this year, visit https://www.investing.com/pro/SNOW. There are 11 additional InvestingPro Tips available to help you make more informed decisions. Remember, you can use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, providing you with valuable information to guide your investment strategy.

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