CEO & Director of Snowflake Picks Up 101% More Stock
Snowflake SNOW | 117.33 118.00 | +1.11% +0.57% Pre |
Those following along with Snowflake Inc. (NYSE:SNOW) will no doubt be intrigued by the recent purchase of shares by Sridhar Ramaswamy, CEO & Director of the company, who spent a stonking US$5.0m on stock at an average price of US$159. That purchase boosted their holding by 101%, which makes us wonder if the move was inspired by quietly confident deeply-felt optimism.
Check out our latest analysis for Snowflake
The Last 12 Months Of Insider Transactions At Snowflake
Over the last year, we can see that the biggest insider sale was by the Lead Independent Director, Michael Speiser, for US$89m worth of shares, at about US$181 per share. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. It's of some comfort that this sale was conducted at a price well above the current share price, which is US$162. So it is hard to draw any strong conclusion from it.
Over the last year, we can see that insiders have bought 36.40k shares worth US$5.8m. But they sold 510.70k shares for US$91m. In total, Snowflake insiders sold more than they bought over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
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Does Snowflake Boast High Insider Ownership?
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that Snowflake insiders own 5.7% of the company, worth about US$3.1b. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
What Might The Insider Transactions At Snowflake Tell Us?
The recent insider purchases are heartening. On the other hand the transaction history, over the last year, isn't so positive. Overall, we'd prefer see a more sustained buying from directors, but with a significant insider holding and more recent purchases, Snowflake insiders are reasonably well aligned, and optimistic for the future. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. In terms of investment risks, we've identified 2 warning signs with Snowflake and understanding these should be part of your investment process.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.