Insider Activity Report: Snowflake (SNOW)

Sridhar Ramaswamy, CEO of Snowflake (SNOW) recently bought 31,542 shares. The buy increased his holdings by 14%, and came to a total cost of just over $5 million.

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  • This is the second insider buy in the past month, following a 3,030 share pickup from a director, at a cost of $501,314. Otherwise, company executives have been regular and steady sellers of shares, with about half of those sales coming following the expiration of stock options.

    Overall, Snowflake insiders own 6.6% of shares.

    The cloud-based app development company is up 5% over the past year, far underperforming the overall market.

    While Snowflake is still losing money, losing nearly $1 billion last year, revenues are up over 30%. Continued revenue growth could allow Snowflake to flip to profitability in the next year or two.

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  • With nearly $4 billion in cash on the books, Snowflake has enough capital to continue growing without needing to hit up the capital markets anytime soon while it moves to positive earnings.

    Action to take: Snowflake shares look like a worthwhile speculative buy now. The stock is in a long-term uptrend, and has recently pulled back significantly from its recent highs.

    For traders, the July $200 calls, last trading for about $5.75, could see mid-double-digit returns from further upside in shares in the months ahead.


    Disclosure: The author of this article has no position in the company mentioned here, but may trade after the next 72 hours. The author receives no compensation from any company mentioned in this article.

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