Snowflake Stock Is Heating Up After The Bell: Here's Why

Zinger Key Points
  • Snowflake CEO Sridhar Ramaswamy discloses the purchase of 31,542 shares of the company's stock.
  • Ramaswamy took over for former CEO Frank Slootman last month.

Snowflake Inc SNOW shares are heating up after the market close on Wednesday following insider buying from the company’s new CEO.

What Happened: In a new regulatory filing released Wednesday after the bell, newly appointed Snowflake CEO Sridhar Ramaswamy disclosed the purchase of 31,542 shares of the company’s stock. Ramaswamy bought the shares on Monday at an average price of $158.52. (Check out Benzinga’s Insider Trades page for more information.)

Last month, Snowflake announced former CEO Frank Slootman decided to retire from his role as CEO, but would remain with the company as chairman of the board. Ramaswamy was named CEO, effective immediately.

Ramaswamy previously led all of Alphabet Inc’s GOOGGOOGL Google advertising products, including search, display and video advertising, analytics, shopping, payments and travel. During his 15 years at Google, AdWords and Google's advertising business grew from $1.5 billion to over $100 billion. 

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SNOW Stock Prediction 2024

Equity research analysts on and off Wall Street typically use earnings growth and fundamental research as a form of valuation and forecasting. But many in trading turn to technical analysis as a way to form predictive models for share price trajectory.

Some investors look to trends to help forecast where they believe a stock could trade at a certain point in the future. Looking at Snowflake, an investor could make an assessment about a stock's long-term prospects using a moving average and trend line. If they believe a stock will remain above the moving average, which many believe is a bullish signal, they can extrapolate that trend into the future using a trend line.

For Snowflake, the 200-day moving average sits at $175.35, according to Benzinga Pro, which was above the current price of $160.04. For more on charts and trend lines, see a description here.

Traders believe that when a stock is above its moving average, it is a generally bullish signal, and when it crosses below, it is a more negative signal. Investors could use trend lines to make an educated guess about where a stock could trade at a later date if conditions remain stable.

SNOW Price Action: Snowflake shares were up 4.04% after hours at $166.50 at the time of publication Wednesday, according to Benzinga Pro.

Photo: Shutterstock

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