Snowflake (SNOW) Stock Drops 7% Following Insider Sales by Founder and CAO

TLDR

• On March 23, founder Benoit Dageville offloaded 874 SNOW shares at $170.01 each, netting approximately $148,588 through a pre-established 10b5-1 trading arrangement
• CAO Emily Ho simultaneously sold 2,141 shares at around $173.97 per share, generating roughly $372,470 and reducing her holdings by 4.59%
• SNOW shares have declined approximately 7% in the past week, currently trading near $161.21, significantly beneath the 52-week peak of $280.67
• Fourth-quarter performance exceeded expectations — earnings per share of $0.32 surpassed projections, while revenue reached $1.28 billion, climbing 30.1% year-over-year — yet the stock remains under pressure
• Several class-action lawsuits combined with persistent insider selling are weighing on shares, though Wall Street maintains a “Moderate Buy” consensus with a mean price target of $248.58

A pair of Snowflake executives sold shares on the identical day last week, catching the attention of market participants. With SNOW already experiencing a roughly 7% decline over the previous five trading sessions, the simultaneous filings have intensified scrutiny around a stock that’s been trending downward throughout the year.

Snowflake Inc., SNOW

Company founder and Chief Architect Benoit Dageville divested 874 shares on March 23 at a price of $170.01, yielding approximately $148,588 in proceeds. This sale occurred under a Rule 10b5-1 trading arrangement established in March 2025, indicating it was planned in advance rather than an opportunistic decision. Additionally, Dageville surrendered 598 and 287 shares on March 20 at $175.40 each to satisfy tax withholding requirements.

Following these transactions, Dageville maintains direct ownership of 65,742 shares. His indirect holdings remain substantial — 750,000 shares held through The Selene GRAT No. 1, over 3 million via The Snow Trust UTA, while his spouse controls an additional 750,000 shares through The Thira GRAT No. 1.

Concurrently, Chief Accounting Officer Emily Ho divested 2,141 shares at an average price of $173.97, generating proceeds of approximately $372,470. This sale reduced her position by 4.59%, leaving her with 44,553 shares valued at roughly $7.75 million.

A Strong Quarter That Couldn’t Lift the Stock

The executive selling occurred despite Snowflake delivering impressive fourth-quarter results. The company reported earnings per share of $0.32, exceeding the Street consensus of $0.27 by five cents. Revenue totaled $1.28 billion, representing 30.1% year-over-year growth and surpassing the $1.25 billion forecast. Remaining performance obligations surged 42% to $9.77 billion, driven partly by a substantial $400 million agreement with a financial services customer.

Despite these positive fundamentals, SNOW shares have failed to gain momentum. The stock currently trades at $161.21, marking a steep decline from its 52-week high of $280.67, and trading substantially below both its 50-day moving average of $182.41 and its 200-day average of $218.51.

Wall Street analysts have broadly reduced their price objectives following the earnings announcement. Wells Fargo slashed its target from $290 to $210. BTIG lowered its forecast from $312 to $235. Scotiabank decreased its target from $290 to $205. Nevertheless, most firms retained Buy-equivalent recommendations. The average price target among 42 covering analysts stands at $248.58, with 33 maintaining Buy ratings, five at Hold, and two at Sell.

Legal Pressure Adds to the Headwinds

Numerous law firms have initiated or announced class-action proceedings against Snowflake, encompassing shares purchased between June 27, 2023 and February 28, 2024. Lead-plaintiff application deadlines are scheduled around April 27, 2026. The proliferation of legal actions — from firms including Rosen, Pomerantz, Schall, and additional plaintiffs’ counsel — has heightened legal uncertainty surrounding the company.

Regarding institutional activity, Vanguard increased its position by 1.45 million shares during the fourth quarter, bringing its total holdings above 30 million. Jennison Associates expanded its stake by 27.7% to 11.6 million shares. Institutional investors collectively control 65.1% of outstanding SNOW shares.

Snowflake’s artificial intelligence project, dubbed Project SnowWork, continues in limited preview mode, designed to provide enterprise business users with AI agents grounded in corporate data.

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