An Insider at Snowflake Just Bought Sock

Insider trades can give investors a more complete view of what is going on within the world’s publicly-listed companies. No one has more information in relation to a company’s prospects than its executives and directors.

In this report, we are going to highlight some interesting insider buying at Snowflake Inc (SNOW:US). Snowflake is a US technology company that offers cloud-based data storage and analytics services. It is listed on the New York Stock Exchange and currently has a market cap of around $55.86 billion.

Insider Buying at Snowflake

Our insider transaction data shows that on May 31, board member Mark McLaughlin purchased 1,831 SNOW shares at a price of $163.80 per share. This trade cost the insider approximately $300,000 and increased his holding to 8,657 shares.

Tech Expert

Mr. McLaughlin has substantial experience in the technology industry. Previously, he served as CEO and Chairman of cybersecurity company Palo Alto Networks. Before this, he served as President and CEO of internet infrastructure services provider VeriSign. Given his background, he is likely to have a good understanding of Snowflake’s prospects.

What stands out here is that Mr. McLaughlin has increased the size of his holding by 27% with this trade. This suggests that he is quite bullish on the stock right now.

Continued Growth

Snowflake’s recent Q1 results showed that the cloud computing company continues to grow at a rapid clip.

For the quarter, revenue came in $623.6 million, up 48% year on year. Meanwhile, non-GAAP adjusted free cash flow amounted to $287 million, up 58% year-over-year. At the end of the period, the company had 373 customers with trailing 12-month product revenue greater than $1 million, 80% higher than the year before.

Looking ahead, Snowflake said that it expects to generate revenue of between $620 million and $625 million for Q2. This was below the consensus forecast of $647 million, but still well above last year’s figure of $497 million.

It’s worth noting that in May, analysts at Stifel upgraded Snowflake from ‘hold’ to ‘buy’. In their view, the company is likely to benefit from the growth of the AI market as it holds data required for companies to train AI models.

In light of these developments, we see the insider buying here as a bullish indicator.