Q2 STOCKS TO BUY

Snowflake Stock Skips Higher After Upbeat Quarter

Analysts and options traders alike are chiming in this morning

Deputy Editor
Dec 2, 2021 at 10:51 AM
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Snowflake Inc (NYSE:SNOW) is up 9.5% to trade at $340.48, after the cloud company reported better-than-expected third-quarter earnings and revenue, and raised its current-quarter forecast. In response, at least nine analysts lifted their price targets, including a lofty hike from Cowen and Company to $450 from $375.

Today's pop has SNOW rebounding from its more than 15% drop over the last two days. Still, the security has been struggling to climb back up to its mid-November peak, which was kept in check by the $404 level. This volatile price action has landed the equity on the Short Sale Restricted (SSR) list today, though year-to-date SNOW is still up 20.7%.

It is also worth noting that the equity's Relative Strength Index (RSI) of just over 30 sits in "oversold" territory, meaning this short-term bounce may have already been in the cards. 

Of the 20 analysts in coverage, 11 still carry a tepid "hold" rating on SNOW, while nine say "strong buy." Meanwhile, the stock's 12-month consensus price target of $380.44 is an 11.2% premium to current levels. 

Options traders are chiming in at full force this morning, with options volume running at eight times the intraday average. So far, 36,000 calls and 42,000 puts have crossed the tape. The weekly 12/3 330-strike put is the most popular, followed by the January, 2022 355 call, with new positions being opened at the former. 

 

 

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