Shares of the beaten-down data warehousing company Snowflake (NASDAQ:SNOW) are in the spotlight as its new CEO, Sridhar Ramaswamy, recently bought SNOW stock to the tune of $5 million. This points to the insider’s confidence about the company’s long-term growth prospects. Following the release of the news, shares of the company gained 3% in the pre-market session on March 28.
It is worth noting that SNOW stock has declined 32.7% from its 52-week high of $237.72. Moreover, it has fallen about 20% year-to-date. This decrease can be attributed to the sudden exit of Snowflake’s former CEO, Frank Slootman, at the end of February. Also, the company’s first quarter and full Fiscal Year 2025 guidance fell short of expectations, dampening investors’ sentiments.
Closer Look at the Insider’s Trades
According to the SEC filing, Ramaswamy bought 31,542 shares of SNOW on March 25, at an average price of $158.52 per share. Overall, Ramaswamy owns 224,181 shares of SNOW.
Additionally, one of Snowflake’s directors, Mark D. McLaughlin, purchased 3,030 shares of the company on March 7, for a total value of $501,310.
Perhaps, it is reasonable to assume that the insiders are using this opportunity to accumulate additional shares in the company. Interestingly, TipRanks offers daily insider transactions as well as a list of top corporate insiders. It also provides a list of hot stocks that boast either a Very Positive or Positive insider confidence signal.
Is SNOW a Buy or Sell?
The company’s impressive pipeline of artificial intelligence (AI) products is expected to support topline growth. Also, its presence in the fast-growing cloud computing industry augurs well for long-term growth. However, Snowflake’s decelerating revenue growth rate remains a key concern.
Overall, analysts are cautiously optimistic about Snowflake stock. SNOW has a Moderate Buy consensus rating on TipRanks based on 24 Buy, nine Hold, and two Sell recommendations. The average price target of $212.23 implies a 32.61% upside potential.
