BTIG Research Reiterates Buy Rating for ServiceNow (NYSE:NOW)

Key Points

• BTIG Research reiterated a Buy rating on ServiceNow with a $185 price target — implying roughly a 91% upside — and MarketBeat shows a consensus of Moderate Buy with a $173.46 target.
• ServiceNow beat Q4 expectations (EPS $0.92 vs. $0.89) and reported revenue up 20.7% year‑over‑year, while the stock trades around $96.64 with a P/E of about 57.9.
• Large institutions materially increased their Q4 stakes (Vanguard, State Street, Price T. Rowe, Morgan Stanley, etc.), pushing institutional ownership to 87.18%, even as insiders sold modest amounts.

ServiceNow (NYSE:NOW - Get Free Report)'s stock had its "buy" rating reiterated by investment analysts at BTIG Research in a report released on Monday,Benzinga reports. They currently have a $185.00 price objective on the information technology services provider's stock. BTIG Research's target price points to a potential upside of 91.44% from the stock's previous close.

Other analysts also recently issued reports about the company. Cantor Fitzgerald reaffirmed an "overweight" rating and set a $200.00 price target on shares of ServiceNow in a research report on Thursday, January 29th. Citigroup reaffirmed a "buy" rating and set a $177.00 price target (down from $237.00) on shares of ServiceNow in a research report on Wednesday. Weiss Ratings reaffirmed a "hold (c)" rating on shares of ServiceNow in a research report on Thursday, January 22nd. Oppenheimer set a $130.00 price target on ServiceNow and gave the company an "outperform" rating in a research report on Wednesday. Finally, Wells Fargo & Company decreased their price target on ServiceNow from $225.00 to $185.00 and set an "overweight" rating for the company in a research report on Tuesday, March 31st. Three research analysts have rated the stock with a Strong Buy rating, thirty-four have issued a Buy rating, six have given a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and a consensus target price of $173.46.

ServiceNow Stock Performance

Shares of NOW opened at $96.64 on Monday. The company has a current ratio of 1.00, a quick ratio of 1.00 and a debt-to-equity ratio of 0.12. The company has a market capitalization of $100.13 billion, a price-to-earnings ratio of 57.94, a PEG ratio of 1.62 and a beta of 1.01. The stock has a 50 day moving average of $105.72 and a 200 day moving average of $140.24. ServiceNow has a 12 month low of $81.24 and a 12 month high of $211.48.

ServiceNow (NYSE:NOW - Get Free Report) last issued its quarterly earnings results on Wednesday, January 28th. The information technology services provider reported $0.92 EPS for the quarter, beating analysts' consensus estimates of $0.89 by $0.03. The company had revenue of $3.57 billion during the quarter, compared to the consensus estimate of $3.53 billion. ServiceNow had a return on equity of 18.54% and a net margin of 13.16%.ServiceNow's revenue was up 20.7% on a year-over-year basis. During the same period last year, the business posted $0.73 earnings per share. As a group, sell-side analysts forecast that ServiceNow will post 8.93 earnings per share for the current year.

Insiders Place Their Bets

In other news, insider Kevin Thomas Mcbride sold 1,400 shares of the firm's stock in a transaction on Friday, February 13th. The stock was sold at an average price of $105.71, for a total value of $147,994.00. Following the completion of the transaction, the insider directly owned 26,314 shares of the company's stock, valued at $2,781,652.94. This trade represents a 5.05% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, Director Paul Edward Chamberlain sold 1,500 shares of the firm's stock in a transaction on Thursday, February 12th. The stock was sold at an average price of $101.17, for a total value of $151,755.00. Following the completion of the transaction, the director directly owned 46,430 shares of the company's stock, valued at $4,697,323.10. The trade was a 3.13% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold 16,237 shares of company stock valued at $1,697,162 over the last ninety days. 0.34% of the stock is currently owned by insiders.

Hedge Funds Weigh In On ServiceNow

A number of large investors have recently made changes to their positions in the stock. Vanguard Group Inc. boosted its holdings in shares of ServiceNow by 404.5% in the fourth quarter. Vanguard Group Inc. now owns 101,963,384 shares of the information technology services provider's stock worth $15,619,771,000 after acquiring an additional 81,752,460 shares during the period. State Street Corp boosted its stake in ServiceNow by 406.6% during the fourth quarter. State Street Corp now owns 47,896,597 shares of the information technology services provider's stock valued at $7,337,280,000 after buying an additional 38,441,898 shares during the period. Price T Rowe Associates Inc. MD boosted its stake in ServiceNow by 371.0% during the fourth quarter. Price T Rowe Associates Inc. MD now owns 32,395,663 shares of the information technology services provider's stock valued at $4,962,692,000 after buying an additional 25,517,218 shares during the period. Geode Capital Management LLC boosted its stake in ServiceNow by 404.8% during the fourth quarter. Geode Capital Management LLC now owns 23,512,428 shares of the information technology services provider's stock valued at $3,591,425,000 after buying an additional 18,854,775 shares during the period. Finally, Morgan Stanley boosted its stake in ServiceNow by 335.6% during the fourth quarter. Morgan Stanley now owns 22,733,483 shares of the information technology services provider's stock valued at $3,482,543,000 after buying an additional 17,514,679 shares during the period. 87.18% of the stock is owned by institutional investors.

ServiceNow Company Profile

ServiceNow NYSE: NOW is a cloud computing company that builds enterprise software to manage digital workflows and automate business processes. Its offerings are designed to replace manual work and legacy systems with cloud-based, service-oriented applications that support IT operations, customer service, human resources, security response and other enterprise functions.

The company's flagship product family is the Now Platform, a suite of subscription software and platform services that includes IT Service Management (ITSM), IT Operations Management (ITOM), IT Business Management (ITBM), Customer Service Management (CSM), HR Service Delivery, Security Operations and Asset Management.

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