Lead Independent Director of Snowflake Michael Speiser Buys 3.2% More Shares

Those following along with Snowflake Inc. (NYSE:SNOW) will no doubt be intrigued by the recent purchase of shares by Michael Speiser, Lead Independent Director of the company, who spent a stonking US$10.0m on stock at an average price of US$131. There's no denying a buy of that magnitude suggests conviction in a brighter future, although we do note that proportionally it only increased their holding by 3.2%.

Check out our latest analysis for Snowflake

The Last 12 Months Of Insider Transactions At Snowflake

In fact, the recent purchase by Lead Independent Director Michael Speiser was not their only trade of Snowflake shares this year. They previously made a sale of -US$89m worth of shares at a price of US$181 per share. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The good news is that this large sale was at well above current price of US$126. So it is hard to draw any strong conclusion from it.

In the last twelve months insiders purchased 110.77k shares for US$15m. But insiders sold 517.20k shares worth US$92m. In total, Snowflake insiders sold more than they bought over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

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Does Snowflake Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Snowflake insiders own 5.7% of the company, currently worth about US$2.4b based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Does This Data Suggest About Snowflake Insiders?

The recent insider purchases are heartening. However, the longer term transactions are not so encouraging. The recent buying by some insiders , along with high insider ownership, suggest that Snowflake insiders are fairly aligned, and optimistic. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. At Simply Wall St, we found 2 warning signs for Snowflake that deserve your attention before buying any shares.

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For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com