Mark McLaughlin, a director at
Snowflake (SNOW), recently bought 3,030 shares. The buy came to a total cost of $501,314, and increased his stake by 35 percent.
McLaughlin was the last director to buy with an 1,831 share pickup for just under $300,000 in May 2023. Otherwise, company insiders have been regular and steady sellers of shares, usually following the expiration of stock options.
Overall, Snowflake insiders own 6.5 percent of shares.
The cloud-based app platform is up 28 percent over the past year, slightly underperforming the S&P 500.
Snowflake is still losing money, but revenues rose nearly 32 percent over the last year. Snowflake has a cash-rich balance sheet, with over $3.8 billion in cash.
That means Snowflake can continue to sustain losses for some time, although it will likely become profitable before running out of cash or having to issue debt or sell more shares.
Action to take: Shares have pulled back in recent weeks, and are nearing oversold levels in the short-term. That could mean a bump higher for shares by the low-double-digits in the coming months.
For traders, with shares looking oversold, a call option trade looks attractive here.
The June $195 calls, last trading for about $7.65, could deliver high double-digit returns on a bounce in shares in the coming months.
Disclosure: The author of this article has no position in the company mentioned here, but may trade after the next 72 hours. The author receives no compensation from any company mentioned in this article.