Street Calls of the Week
Christian Kleinerman, EVP, Product Management at Snowflake Inc. (NASDAQ:SNOW), sold 548 shares of the company’s common stock on September 9 at a price of $223.86, totaling approximately $122,675. The transaction comes as Snowflake, now valued at $76.56 billion, has seen its stock surge over 100% in the past year. According to InvestingPro analysis, the stock is currently trading above its Fair Value, with 37 analysts recently revising their earnings estimates upward.
According to a Form 4 filing with the Securities and Exchange Commission, Kleinerman also disposed of 1,468 shares of Snowflake common stock on September 8. These shares were disposed of to cover tax withholding obligations related to the vesting of restricted stock units, with each share valued at $225.58, for a total value of $331,151. Want deeper insights into Snowflake’s valuation metrics and financial health? Access the comprehensive Pro Research Report, along with 8 additional key ProTips, available exclusively on InvestingPro.
Following these transactions, Kleinerman directly owns 553,733 shares of Snowflake Inc . common stock. He also indirectly owns shares through several entities, including 48,568 shares held by the Kleinerman 2020 Dynasty LLC, 5,086 shares held by the Christian Kleinerman 2022 Grantor Retained Annuity Trust, 100,000 shares held by the Christian Kleinerman 2023 Grantor Retained Annuity Trust, and 100,000 shares held by the Christian Kleinerman 2024 Grantor Retained Annuity Trust.
The sale was executed under a pre-arranged 10b5-1 trading plan adopted on December 19, 2024.
In other recent news, Snowflake has reported strong second-quarter earnings, with product revenue reaching $1,090 million, marking a 32% year-over-year increase. This growth exceeded consensus estimates by $47 million and was accompanied by a rise in remaining performance obligations to $6,932 million, a 33% increase. Additionally, the company saw an improvement in net revenue retention, which rose to 125%. In leadership changes, Snowflake announced that Brian Robins, previously CFO at GitLab, will assume the role of Chief Financial Officer, succeeding Mike Scarpelli, who is retiring. Scarpelli will stay on temporarily to aid in the transition before moving into an advisory position. Analyst firms have responded positively to Snowflake’s performance, with Macquarie raising its price target to $235, Piper Sandler to $285, and TD Cowen to $275, all citing the company’s accelerated growth and strong financial results. Piper Sandler specifically noted Snowflake’s growth in artificial intelligence as a contributing factor to its increased price target. These developments highlight Snowflake’s ongoing momentum in the market.
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