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Snowflake director Mark McLaughlin, a former Palo Alto Networks CEO, just bought $300,000 of Snowflake shares.
Jason Alden/Bloomberg
Snowflake
stock has had its ups and downs this year, and one of the newest directors of the cloud-software company just bought up some shares on the dip.
Snowflake stock (ticker: SNOW) slid in early February along with cloud peers when disappointing guidance from
Amazon.com
(AMZN) for its Amazon Web Services spooked investors. Shares recovered in the ensuing months, but the lighter-than-expected outlook from Snowflake itself in the first-quarter report in late May sent shares tumbling again. Snowflake stock nonetheless currently sports a 19% gain for the year to date.
After Snowflake’s latest drop, director Mark D. McLaughlin paid $300,000 on May 31 for 1,831 shares, an average price of $163.80 each. He now owns 8,657 Snowflake shares, including shares to be issued with the vesting of restricted stock units, according to a form he filed with the Securities and Exchange Commission.
McLaughlin, a former chairman and CEO of
Palo Alto Networks
(PANW), joined Snowflake’s board in April. Snowflake didn’t make McLaughlin available for comment on his stock purchase, and the company also declined to comment.
Oppenheimer analyst Ittai Kidron wrote in a May 24 report that “the increasing slowdown in the pace of consumption and change in customer policies are disappointing.” But Kidron added, “Longer term, the fundamental shift toward cloud-based architectures and Snowflake’s competitive advantages remain intact, and we see share gains as new workloads move to Snowflake.” He rates Snowflake stock at Outperform.
Inside Scoop is a regular Barron’s feature covering stock transactions by corporate executives and board members—so-called insiders—as well as large shareholders, politicians, and other prominent figures. Due to their insider status, these investors are required to disclose stock trades with the Securities and Exchange Commission or other regulatory groups.
Write to Ed Lin at [email protected] and follow @BarronsEdLin.
Source: https://www.barrons.com/articles/snowflake-stock-buy-insider-1750d3b5?siteid=yhoof2&yptr=yahoo