Snowflake (SNOW) Sees Flurry of Action From Analysts, Options Traders By: Schaeffer's Investment Research | March 4, 2021
• Deutsche Bank upgraded the stock to "buy" from "hold"
• Puts are running at six times what's typically seen at this point
Snowflake Inc (NYSE:SNOW) is being blasted with mixed analyst adjustments today, one day after the cloud data company reported slightly narrower-than-expected fourth-quarter losses per share and beat analysts' anticipated revenue. Most notably, Deutsche Bank upgraded the stock to "buy" from "hold," with a price-target hike to $300 from $270. Morgan Stanley also chimed in with a bull note, upping its price objective to $270 from $265. However, no fewer than three other analysts cut their price targets, including Barclays to $270 from $295.
At last check, the shares are down 2.5% to trade at $240.67. SNOW, which has been publicly traded since mid-September, has been moving lower since its December highs. With pressure at the $326-$327 region since the start of the year, the equity is currently down 15.8% year-to-date. The stock's 14-Day Relative Strength Index (RSI) of 32 -- on the cusp of "oversold" territory -- could also provide insight into today's bounce.
There is plenty of space for analysts to join Deutsche Bank in a round of upgrades. Coming into today, 15 of the 22 analysts in coverage carried a "hold" or worse rating on Snowflake stock. Meanwhile, though shorts have been jumping ship, short interest still makes up an impressive 17.9% of the stock's available float.
Options traders have been quick to the trade this morning as well. So far today, 11,000 calls and 11,000 puts have crossed the tape -- with puts running at six times what's typically seen at this point. Most popular is the weekly 3/05 240-strike put, where new positions are being opened. This means that there are quite a few traders betting on SNOW to move lower by the contract's expiration tomorrow.
Information posted to this board is not meant to suggest any specific action, but to point out the technical signs that can help our readers make their own specific decisions. Caveat emptor! • DiscoverGold
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