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Snowflake faces insider selling as stock rallies ahead of early-September earnings

Snowflake is up about 200% since late August, while analysts expect 30% revenue growth and wider margins when it reports Q2 earnings in early September.

Reported · Written up by our desk · Previews

Snowflake’s rally is drawing scrutiny after insiders sold shares during the stock’s surge, even as analysts and institutions point to continued momentum ahead of the company’s early-September Q2 earnings report, according to MarketBeat Ratings.

The stock was up about 200% as of late August and has seen selling across multiple executives and directors, with former CEO Frank Slootman accounting for the bulk of the activity. The article says many sales were conducted under prearranged trading plans, which it frames as forethought to reduce exposure rather than a signal of impending trouble.

The report highlights analyst sentiment and buy-side positioning, noting there are 40 active analyst ratings with a consensus Buy, an 87.5% buy-side bias, and a consensus price target of $320. It also cites a 40% year-over-year increase in the consensus target and notes the high-end price target has moved to $425, just short of existing highs.

Institutional ownership is described as supporting the outlook, with institutions holding about 65% of the stock and accumulating at a $7-to-$1 pace over the trailing 12 months, with activity ramping in early Q3. For the next earnings catalyst, analysts are forecasting 30% revenue growth and wider margins for Q2, with the article saying there are whispers that results could be even stronger.

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