Snowflake Inc. (NYSE:SNOW) shares are trading higher Wednesday. The stock appears to be recovering from a dip following the company's announcement on Monday of a private placement of convertible senior notes.
The Details:
Snowflake shares fell after the company announced it intends to offer $1 billion worth of convertible senior notes due 2027 and $1 billion worth of convertible senior notes due 2029 in a private placement to institutional investors.
On Wednesday, Snowflake announced the pricing of the offering with the initial conversion rate for both the 2027 and 2029 notes at 6.3492 shares per $1,000 principal, or $157.50 per share, a 40% premium to the stock price as of Sept. 24.
On Tuesday, Rosenblatt analyst Blair Abernethy maintained a Buy rating on Snowflake with a price target of $180 and highlighted the company's financial position with $3.9 billion in cash and no debt.
"In our view, the company is issuing the proposed Notes from a position of financial strength," Abernethy wrote.
Snowflake shares are trending higher on heavy trading Wednesday. According to data from Benzinga Pro, more than double the stock's average daily volume has already been traded in the session.
Will SNOW Stock Go Up?
When trying to assess whether or not Snowflake will trade higher from current levels, it's a good idea to take a look at analyst forecasts.
Wall Street analysts have an average 12-month price target of $165.48 on Snowflake. The Street high target is currently at $220 and the Street low target is $121. Of all the analysts covering Snowflake, 19 have positive ratings, 10 have neutral ratings and no one has negative ratings.
In the last month, one analyst has adjusted price targets. Here's a look at recent price target changes [Analyst Ratings]. Benzinga also tracks Wall Street's most accurate analysts. Check out how analysts covering Snowflake have performed in recent history.
Stocks don't move in a straight line. The average stock market return is approximately 10% per year. Snowflake is 38.42% down year-to-date. The average analyst price target suggests the stock could have further upside ahead.
For a broad overview of everything you need to know about Snowflake, visit here. If you want to go above and beyond, there's no better tool to help you do just that than Benzinga Pro. Start your free trial today.
SNOW Price Action: According to Benzinga Pro, Snowflake shares are up 1.70% at $114.41 at the time of publication Wednesday.
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