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    Home»News»Stocks»Snowflake (SNOW) Stock Drops 7% After Insider Sales by Founder and CAO
    Stocks

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

    Oli DaleBy Oli DaleMarch 25, 2026No Comments4 Mins Read
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    Quick Overview

    • Co-founder Benoit Dageville offloaded 874 SNOW shares on March 23 at $170.01 per share, generating approximately $148,588 via a pre-established 10b5-1 trading arrangement
    • Chief Accounting Officer Emily Ho disposed of 2,141 shares the same day at around $173.97 each, totaling roughly $372,470 and reducing her holdings by 4.59%
    • Snowflake shares have declined approximately 7% in the last week, currently trading near $161.21, significantly beneath the 52-week peak of $280.67
    • Fourth quarter performance exceeded expectations — earnings per share hit $0.32 versus forecasts, revenue reached $1.28 billion with 30.1% annual growth — yet shares remain under pressure
    • Class-action lawsuits and continued insider transactions are weighing on sentiment, though Wall Street maintains a “Moderate Buy” stance with an average price objective of $248.58

    Snowflake experienced coordinated insider selling last week when two executives unloaded shares on the identical trading date, a development that hasn’t gone unnoticed by market participants. With SNOW already shedding roughly 7% during the preceding five-day period, these simultaneous regulatory filings have intensified scrutiny around shares that have struggled throughout the year.


    SNOW Stock Card
    Snowflake Inc., SNOW

    Co-founder and Chief Technical Architect Benoit Dageville executed a sale of 874 shares on March 23 at a price of $170.01, generating proceeds of approximately $148,588. This divestiture occurred under a Rule 10b5-1 trading arrangement established in March 2025, indicating the transaction was predetermined rather than opportunistic. Additionally, Dageville surrendered 598 and 287 shares on March 20 at $175.40 apiece to satisfy tax withholding requirements.

    Following these transactions, Dageville maintains direct ownership of 65,742 shares. His indirect holdings are substantially larger — 750,000 shares held through The Selene GRAT No. 1, more than 3 million via The Snow Trust UTA, while his spouse controls another 750,000 through The Thira GRAT No. 1.

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

    Robust Quarterly Performance Fails to Spark Rally

    These insider transactions occurred despite impressive fourth-quarter results. Snowflake delivered earnings per share of $0.32, surpassing the Street consensus of $0.27 by five cents. Quarterly revenue totaled $1.28 billion, representing 30.1% year-over-year expansion and exceeding the anticipated $1.25 billion. Remaining performance obligations surged 42% to $9.77 billion, driven partially by a substantial $400 million contract with a financial services customer.

    Despite these metrics, the equity has failed to gain traction. SNOW currently trades at $161.21, representing a substantial retreat from its 52-week high of $280.67, and trading below both the 50-day moving average of $182.41 and the 200-day average of $218.51.

    Wall Street analysts have recalibrated their projections downward following the earnings announcement. Wells Fargo reduced its price target from $290 to $210. BTIG lowered its forecast from $312 to $235. Scotiabank adjusted downward from $290 to $205. Nevertheless, most firms retained positive ratings. Across 42 covering analysts, the consensus target stands at $248.58, with 33 maintaining Buy recommendations, five at Hold, and two at Sell.

    Litigation Concerns Compound Challenges

    Numerous law firms have initiated or publicized class-action proceedings against Snowflake, encompassing share purchases executed between June 27, 2023 and February 28, 2024. Lead-plaintiff appointment deadlines are scheduled around April 27, 2026. The proliferation of filings — from firms such as Rosen, Pomerantz, Schall, and additional counsel — has elevated legal ambiguity surrounding the company.

    Regarding institutional activity, Vanguard accumulated 1.45 million additional shares during Q4, expanding its position beyond 30 million shares. Jennison Associates increased its stake by 27.7% to reach 11.6 million shares. Institutional investors collectively control 65.1% of outstanding SNOW equity.

    Snowflake’s artificial intelligence program, Project SnowWork, continues in limited preview status, designed to provide enterprise business users with data-anchored AI agents.

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    Oli Dale
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