Snowflake Inc. (NYSE:SNOW) previous close was $292.69 while the outstanding shares total 255.01M. SNOW’s shares traded higher over the last trading session, gaining 16.13% on 12/03/20. The shares fell to a low of $289.00 before closing at $339.89. Intraday shares traded counted 11.02 million, which was -215.85% lower than its 30-day average trading volume of 3.49M. The stock’s Relative Strength Index (RSI) is 69.08, with weekly volatility at 10.13% and ATR at 21.26. The SNOW stock’s 52-week price range has touched low of $208.55 and a $342.00 high.
Investors have identified the Software – Application company Snowflake Inc. as an interesting stock but before investments are made there, an in-depth look at its trading activities will have to be conducted. The share is trading with a market value of around $86.68 billion, the company now has both obstacles and catalysts that affect them and they came from their mode of operations. With the company affected by events currently, it is a perfect time to analyze the numbers behind the firm in order to come up with a rather realistic picture of what this stock is.
Snowflake Inc. (SNOW) Fundamentals that are to be considered.
When analyzing a stock, the first fundamental thing to take into account is the balance sheet. How healthy the balance sheet of a company is will determine if the company will be able to carry out all its financial and non-financial obligations and also keep the faith of its investors. For SNOW, the company has in raw cash 207.79 million on their books with 3.67 million currently as liabilities. How the trend is over time is what investors should be concerned about. The company has a healthy balance sheet as their debt profile has been on an incline. In terms of their assets, the company currently has 283122000 million total, with 132328000 million as their total liabilities.
SNOW were able to record 89.5 million as free cash flow during the third quarter of the year, this saw their quarterly net cash flow reduce by 85.13 million. In cash movements, the company had a total of 131.09 million as operating cash flow.
Potential earnings growth for Snowflake Inc. (SNOW)
In order to determine the future investment potential for this stock, we will have to analyze key trends that affect it. During the third quarter of the year, Snowflake Inc. recorded a total of 334.89 million in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with 5.73% coming in sequential stages and their sales for the third quarter increasing by 63.82%.
What matters though is how it ends. When the core data for the company is broken down, then the stock sounds interesting. The company spent 334.89 million trying to sell their products during the last quarter, with the result yielding a gross income of 175.79 million. This allows shareholders to hold on to 255.01M with the revenue now reading 3.95 cents per share. This is a figure that is close to analyst’s prediction for their fourth quarter.
Is the stock of SNOW attractive?
In related news, 10% Owner, ICONIQ Strategic Partners III, bought 420,007 shares of the company’s stock in a transaction that recorded on Sep 18. The purchase was performed at an average price of 120.00, for a total value of 50,402,100. As the purchase deal closes, the 10% Owner, GERSTNER BRAD now bought 420,000 shares of the company’s stock, valued at 50,400,000.