Frank Slootman, a director at Snowflake Inc . (NYSE:SNOW), recently sold a significant portion of his holdings in the company. According to a recent SEC filing, Slootman sold a total of 59,617 shares of Snowflake's Class A Common Stock, amounting to approximately $10.5 million. The shares were sold at prices ranging from $175.202 to $178.203 per share. Currently trading at $172.37, the stock has shown strong momentum with a 28% gain over the past six months. InvestingPro data shows 33 analysts have revised their earnings upwards for the upcoming period.
The transactions were part of a pre-arranged trading plan under Rule 10b5-1, which allows executives to set up a trading plan for selling stocks they own. Following these sales, Slootman retains ownership of 208,735 shares directly. Additionally, he holds shares indirectly through various trusts and a family foundation. According to InvestingPro, Snowflake maintains strong financial health with liquid assets exceeding short-term obligations and operates with a moderate debt level.
Slootman also exercised stock options to acquire 59,617 shares at a price of $8.88 per share, totaling approximately $529,398. This exercise was part of a fully vested stock option plan. While the company is not currently profitable, analysts tracked by InvestingPro predict profitability this year. Get access to 10+ additional exclusive ProTips and comprehensive analysis in the Pro Research Report.
In other recent news, Snowflake Inc. has been the recipient of several upgrades and price target increases from major financial firms. Wedbush upgraded Snowflake's stock rating from Neutral to Outperform, setting a new price target of $190, based on the company's potential growth in the artificial intelligence (AI) sector. Citi maintained a Buy rating on Snowflake and raised its price target to $225, citing strong top-line performance and acceleration in bookings.
KeyBanc Capital Markets increased their price target for Snowflake to $185, citing impressive third fiscal quarter product revenue and an upward revision for fourth fiscal quarter guidance. Monness Crespi Hardt also increased its price target for Snowflake to $188, following strong third-quarter results and a robust fourth-quarter outlook.
Snowflake's recent financial performance revealed a 29% year-over-year increase in product revenue, reaching $900 million, and a significant 55% year-over-year increase in remaining performance obligations, totaling $5.7 billion. The company recently acquired DataVolo to enhance its data connectivity and engineering capabilities and partnered with Anthropic to integrate powerful AI models into the Snowflake Cortex. These recent developments reflect the anticipation of continued growth for Snowflake.
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