ServiceNow (NYSE:NOW) Stock Price Target Raised at Royal Bank Of Canada

Key Points

• Royal Bank of Canada raised ServiceNow’s price target to $176 from $130 and maintained an “outperform” rating, implying 22.48% upside from the prior close.
• Analyst sentiment remains broadly positive: ServiceNow has a consensus “Moderate Buy” rating and an average price target of $147.59, with 36 analysts rating the stock Buy or Strong Buy.
• ServiceNow’s latest quarterly results exceeded expectations, with adjusted earnings of $0.90 per share versus $0.86 expected and revenue of $3.99 billion, up 24% year over year.

ServiceNow (NYSE:NOW - Get Free Report) had its target price boosted by research analysts at Royal Bank Of Canada from $130.00 to $176.00 in a note issued to investors on Monday, Benzinga reports. The brokerage currently has an "outperform" rating on the information technology services provider's stock. Royal Bank Of Canada's price target points to a potential upside of 22.48% from the stock's previous close.

Several other research firms also recently issued reports on NOW. Piper Sandler restated an "overweight" rating and set a $140.00 price objective on shares of ServiceNow in a report on Thursday, July 23rd. Robert W. Baird increased their target price on shares of ServiceNow from $118.00 to $125.00 and gave the company an "outperform" rating in a research note on Thursday, July 23rd. Oppenheimer reissued an "outperform" rating and set a $140.00 target price (up from $130.00) on shares of ServiceNow in a research report on Wednesday, July 15th. Needham & Company LLC lifted their target price on ServiceNow from $115.00 to $155.00 and gave the stock a "buy" rating in a research report on Friday, September 11th. Finally, Jefferies Financial Group restated a "buy" rating and set a $140.00 price target (up from $135.00) on shares of ServiceNow in a research note on Thursday, July 23rd. One equities research analyst has rated the stock with a Strong Buy rating, thirty-five have assigned a Buy rating, four have issued a Hold rating and two have issued a Sell rating to the company. According to data from MarketBeat, ServiceNow has a consensus rating of "Moderate Buy" and an average price target of $147.59.

ServiceNow Trading Up 2.0%

Shares of NOW stock opened at $143.69 on Monday. The firm has a market capitalization of $148.58 billion, a P/E ratio of 91.32, a price-to-earnings-growth ratio of 2.59 and a beta of 0.99. ServiceNow has a 1 year low of $81.24 and a 1 year high of $192.97. The firm's fifty day simple moving average is $132.86 and its 200 day simple moving average is $112.36. The company has a current ratio of 0.70, a quick ratio of 0.70 and a debt-to-equity ratio of 0.43.

ServiceNow (NYSE:NOW - Get Free Report) last issued its quarterly earnings results on Wednesday, July 22nd. The information technology services provider reported $0.90 earnings per share for the quarter, beating analysts' consensus estimates of $0.86 by $0.04. The firm had revenue of $3.99 billion during the quarter, compared to the consensus estimate of $3.93 billion. ServiceNow had a net margin of 11.34% and a return on equity of 16.45%. The business's revenue was up 24.0% on a year-over-year basis. During the same period in the prior year, the firm earned $0.81 EPS. As a group, sell-side analysts predict that ServiceNow will post 2.22 EPS for the current year.

Insiders Place Their Bets

In other news, insider Jacqueline P. Canney sold 7,847 shares of the business's stock in a transaction on Friday, August 28th. The shares were sold at an average price of $138.00, for a total value of $1,082,886.00. Following the sale, the insider owned 30,042 shares in the company, valued at approximately $4,145,796. The trade was a 20.71% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Paul Chamberlain sold 2,700 shares of the stock in a transaction dated Thursday, August 27th. The stock was sold at an average price of $135.50, for a total transaction of $365,850.00. Following the sale, the director owned 43,990 shares of the company's stock, valued at $5,960,645. This trade represents a 5.78% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold a total of 14,081 shares of company stock worth $1,937,904 over the last quarter. Company insiders own 0.34% of the company's stock.

Hedge Funds Weigh In On ServiceNow

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the company. Moody National Bank Trust Division grew its position in ServiceNow by 3.9% during the 3rd quarter. Moody National Bank Trust Division now owns 13,038 shares of the information technology services provider's stock worth $1,747,000 after acquiring an additional 484 shares during the last quarter. Central Pacific Bank Trust Division raised its position in ServiceNow by 7.0% in the 3rd quarter. Central Pacific Bank Trust Division now owns 19,131 shares of the information technology services provider's stock valued at $2,564,000 after purchasing an additional 1,259 shares during the last quarter. Defender Capital LLC. bought a new position in ServiceNow in the 3rd quarter valued at $268,000. First Financial Bank Trust Division bought a new position in ServiceNow in the 3rd quarter valued at $5,511,000. Finally, Greenwich Wealth Management LLC raised its position in ServiceNow by 5.2% in the 2nd quarter. Greenwich Wealth Management LLC now owns 5,816 shares of the information technology services provider's stock valued at $577,000 after purchasing an additional 290 shares during the last quarter. 87.18% of the stock is currently owned by institutional investors and hedge funds.

ServiceNow Company Profile

ServiceNow, Inc is a cloud-based enterprise software company that helps organizations digitize, automate and manage workflows. Its platform connects people, processes and systems across departments, enabling businesses to replace manual, disconnected activities with standardized digital workflows.

The company's products and services support a range of functions, including information technology service management, IT operations management, customer service, human resources, risk and security operations, and software development.

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