Frank Slootman sells $15.5 million in Snowflake stock

Snowflake Inc . (NYSE:SNOW), the $51.89 billion cloud computing company, saw Director Frank Slootman execute a significant stock sale, according to a filing with the Securities and Exchange Commission. On December 30, 2024, Slootman sold 100,000 shares of Class A Common Stock at a price of $155 per share, totaling $15.5 million. According to InvestingPro, the stock currently trades at $157.51, with analysts setting price targets ranging from $115 to $225.

This transaction was part of a pre-arranged trading plan under Rule 10b5-1, which allows insiders to set up a predetermined plan to sell stocks. On the same day, Slootman also exercised options to acquire 100,000 shares at $8.88 each, amounting to $888,000.

Following these transactions, Slootman retains direct ownership of 195,281 shares, while his indirect holdings through various trusts and foundations include significant amounts as well.

In other recent news, Databricks has secured a massive $10 billion in Series J funding, propelling the company's valuation to a staggering $62 billion. This influx of capital is earmarked for strategic acquisitions, expansion of international go-to-market strategies, and providing liquidity for employees. The company also anticipates surpassing $3 billion in annual recurring revenue and achieving positive free cash flow in the fourth quarter.

Simultaneously, Snowflake, a competitor of Databricks, has been the subject of attention from multiple analyst firms. Jefferies, Baird, and KeyBanc Capital Markets have raised their price targets for the company, reflecting its strong growth trajectory.

In the realm of cloud database management systems, Gartner (NYSE:IT)'s 2024 Magic Quadrant positioned Databricks alongside industry giants such as AWS, Google (NASDAQ:GOOGL), Oracle (NYSE:ORCL), and Microsoft. Databricks outshone Snowflake, with a stronger position on both Completeness of Vision and Ability (OTC:ABILF) to Execute.

Microsoft Corporation (NASDAQ:MSFT) reported a 16% year-on-year increase in Q1 FY2025 revenue, reaching $65.6 billion. Analyst firms, including TD Cowen, Citi, Mizuho (NYSE:MFG), and Goldman Sachs, have maintained their positive ratings on Microsoft's stock.

These are recent developments in the dynamic growth and competitive landscape of the data and analytics sector.

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