Snowflake (SNOW) Stock Drops 7% as Founder and CAO Both Sell on Same Day

TLDR

• On March 23, Founder Benoit Dageville sold 874 SNOW shares at $170.01 each, a transaction valued at approximately $148,588, which was executed under a pre-arranged 10b5-1 trading plan.
• Also on March 23, Chief Accounting Officer Emily Ho sold 2,141 shares at an average price of ~$173.97, generating roughly $372,470 and reducing her holding by 4.59%.
• SNOW stock has declined approximately 7% in the past week and is currently trading near $161.21, a level significantly lower than its 52-week peak of $280.67.
• The company reported robust Q4 results, with EPS of $0.32 surpassing estimates and revenue of $1.28 billion growing 30.1% year-over-year, yet the stock price has failed to react positively.
• Mounting pressure from multiple class-action lawsuits and continued insider selling contrasts with the analyst consensus, which stands at “Moderate Buy” and an average price target of $248.58.

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(SeaPRwire) –   Market observers have taken note of two Snowflake insiders selling company stock on the same day last week. These consecutive filings have introduced additional uncertainty for a stock that was already down about 7% over the previous five days and has been trending downward throughout the year.

Snowflake Inc., SNOW

Benoit Dageville, the Founder and Chief Architect, sold 874 shares on March 23 for $170.01 per share, yielding roughly $148,588. This sale was conducted pursuant to a 10b5-1 trading plan established in March 2025, indicating it was pre-scheduled rather than a decision made in response to market conditions. Additionally, on March 20, he sold 598 and 287 shares at $175.40 each to fulfill tax obligations.

Following these transactions, Dageville’s direct ownership stands at 65,742 shares. He also maintains indirect control over a substantially larger stake, including 750,000 shares via The Selene GRAT No. 1, over 3 million shares through The Snow Trust UTA, and his spouse holds a further 750,000 shares in The Thira GRAT No. 1.

On that same day, Chief Accounting Officer Emily Ho divested 2,141 shares at an average price of $173.97, receiving approximately $372,470. This sale decreased her stake by 4.59%, leaving her with 44,553 shares valued at about $7.75 million.

A Strong Quarter That Couldn’t Lift the Stock

This insider selling occurred even after Snowflake delivered solid fourth-quarter financials. The company announced earnings per share of $0.32, exceeding the consensus estimate of $0.27 by five cents. Revenue reached $1.28 billion, a 30.1% increase from the previous year and ahead of the $1.25 billion forecast. Remaining performance obligations jumped 42% to $9.77 billion, partly driven by a $400 million agreement with a financial services company.

Despite these strong results, the stock has not attracted buying interest. SNOW is currently priced at $161.21, a steep drop from its 52-week high of $280.67, and trades well below its 50-day moving average of $182.41 and its 200-day moving average of $218.51.

Following the earnings report, analysts have broadly reduced their price targets. Wells Fargo lowered its target from $290 to $210, BTIG decreased its target from $312 to $235, and Scotiabank cut its target from $290 to $205. However, most firms maintained their Buy-equivalent ratings. The consensus price target among 42 analysts is $248.58, with 33 recommending Buy, five recommending Hold, and two recommending Sell.

Legal Pressure Adds to the Headwinds

Snowflake is facing class-action notices filed or promoted by several law firms, pertaining to stock purchases made between June 27, 2023, and February 28, 2024. The deadlines for lead plaintiffs are approximately April 27, 2026. The number of filings from firms such as Rosen, Pomerantz, and Schall has heightened the legal risks associated with the stock.

Institutional investment tells a different story. Vanguard increased its holding by 1.45 million shares in the fourth quarter, raising its total position to more than 30 million shares. Jennison Associates grew its stake by 27.7% to 11.6 million shares. Overall, institutional investors hold 65.1% of SNOW shares.

The company’s artificial intelligence project, known as Project SnowWork, is currently in a limited preview phase. It is designed for enterprise business users and focuses on data-grounded AI agents.