Snowflake Inc (NYSE:SNOW) shares are trading higher Thursday following recent insider buying from the company's new CEO.

What To Know: Snowflake CEO Sridhar Ramaswamy has disclosed the purchase of 31,542 shares of the company's stock in a new regulatory filing. Ramaswamy bought the shares on Monday at an average price of $158.52, representing a $5 million investment in total.

Former Snowflake CEO Frank Slootman decided to retire from his role last month. Ramaswamy was named CEO, effective immediately.

Ramaswamy previously led all of Alphabet Inc's (NASDAQ:GOOG) (NASDAQ:GOOGL) Google advertising products, including search, display and video advertising, analytics, shopping, payments and travel. During his 15 years at Google, AdWords and Google’s advertising business grew from $1.5 billion to over $100 billion. 

Check out Benzinga's Insider Trades page for more information.

Is SNOW A Good Stock To Buy?

An investor can make a few decisions when deciding whether a stock is a good buy. In addition to valuation metrics and price action which you can find on Benzinga's quote pages – like Snowflake‘s page for example – there are factors like whether or not a company pays a dividend or buys a large portion of its stock each quarter.

These are known as capital allocation programs. Snowflake does not pay a dividend, but has a few ways it can return value to shareholders. Feel free to search Benzinga's dividend calendar for the next company that is due to pay a dividend and determine what kind of yield you can earn for holding a share of the company.

Buyback programs are obviously different and highly variable. A company can approve a buyback program and purchase shares as it sees fit over the course of time in which the buyback was authorized. Looking through the latest news on Snowflake will often yield whether or not the company has approved a buyback program recently. Buyback programs usually serve as a support for share prices, serving as a backstop for demand.

SNOW Price Action: Snowflake shares were up 3.29% at $165.30 at the time of writing, according to Benzinga Pro.

Photo: courtesy of Snowflake.