Prescott Group Capital Management L.L.C. Grows Stake in ServiceNow, Inc. (NYSE:NOW)

Key Points

• Prescott Group Capital Management increased its stake in ServiceNow by 8.6%, acquiring an additional 311 shares, bringing their total holdings to 3,911 shares valued at approximately $3.1 million.
• ServiceNow recently reported an EPS of $4.09 for the quarter, surpassing expectations, with a year-over-year revenue growth of 22.4%, totaling $3.22 billion.
• Analysts have given ServiceNow a consensus rating of "Moderate Buy", with a price target averaging around $1,107.94, while several brokerages have increased their price targets significantly.

Prescott Group Capital Management L.L.C. raised its position in shares of ServiceNow, Inc. (NYSE:NOW - Free Report) by 8.6% in the 1st quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The firm owned 3,911 shares of the information technology services provider's stock after buying an additional 311 shares during the period. Prescott Group Capital Management L.L.C.'s holdings in ServiceNow were worth $3,114,000 as of its most recent filing with the Securities & Exchange Commission.

Several other hedge funds and other institutional investors have also modified their holdings of the company. Price T Rowe Associates Inc. MD boosted its position in shares of ServiceNow by 6.8% during the fourth quarter. Price T Rowe Associates Inc. MD now owns 7,955,924 shares of the information technology services provider's stock worth $8,434,235,000 after buying an additional 509,467 shares during the period. FMR LLC boosted its position in shares of ServiceNow by 4.9% during the fourth quarter. FMR LLC now owns 5,878,900 shares of the information technology services provider's stock worth $6,232,339,000 after buying an additional 272,506 shares during the period. Geode Capital Management LLC boosted its holdings in ServiceNow by 2.4% in the fourth quarter. Geode Capital Management LLC now owns 4,312,571 shares of the information technology services provider's stock valued at $4,560,890,000 after purchasing an additional 100,670 shares during the period. GAMMA Investing LLC boosted its holdings in ServiceNow by 87,501.3% in the first quarter. GAMMA Investing LLC now owns 2,689,361 shares of the information technology services provider's stock valued at $2,141,108,000 after purchasing an additional 2,686,291 shares during the period. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC boosted its holdings in ServiceNow by 3.4% in the fourth quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 2,654,825 shares of the information technology services provider's stock valued at $2,814,433,000 after purchasing an additional 87,876 shares during the period. 87.18% of the stock is currently owned by hedge funds and other institutional investors.

ServiceNow Stock Performance

NOW traded down $28.13 on Friday, hitting $968.05. 1,998,443 shares of the company traded hands, compared to its average volume of 1,429,436. The company has a 50 day moving average of $1,000.33 and a 200-day moving average of $952.52. The company has a quick ratio of 1.12, a current ratio of 1.09 and a debt-to-equity ratio of 0.14. The stock has a market capitalization of $200.37 billion, a PE ratio of 121.92, a PEG ratio of 4.43 and a beta of 0.94. ServiceNow, Inc. has a 12-month low of $678.66 and a 12-month high of $1,198.09.

ServiceNow (NYSE:NOW - Get Free Report) last released its earnings results on Wednesday, July 23rd. The information technology services provider reported $4.09 earnings per share (EPS) for the quarter, topping the consensus estimate of $3.57 by $0.52. ServiceNow had a return on equity of 18.04% and a net margin of 13.78%. The company had revenue of $3.22 billion for the quarter, compared to analysts' expectations of $3.12 billion. During the same quarter in the previous year, the firm posted $3.13 EPS. The firm's quarterly revenue was up 22.4% on a year-over-year basis. Sell-side analysts anticipate that ServiceNow, Inc. will post 8.93 earnings per share for the current year.

Insider Activity at ServiceNow

In other ServiceNow news, Director Jonathan Chadwick sold 770 shares of the business's stock in a transaction that occurred on Monday, April 28th. The stock was sold at an average price of $931.62, for a total transaction of $717,347.40. Following the transaction, the director owned 3,205 shares in the company, valued at approximately $2,985,842.10. The trade was a 19.37% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, Vice Chairman Nicholas Tzitzon sold 1,171 shares of the business's stock in a transaction that occurred on Friday, May 30th. The stock was sold at an average price of $1,020.00, for a total value of $1,194,420.00. Following the transaction, the insider owned 3,000 shares in the company, valued at $3,060,000. The trade was a 28.07% decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 6,003 shares of company stock worth $6,015,106 in the last three months. 0.38% of the stock is currently owned by corporate insiders.

Wall Street Analysts Forecast Growth

NOW has been the subject of a number of recent research reports. TD Securities reiterated a "buy" rating and issued a $1,100.00 target price on shares of ServiceNow in a report on Thursday, April 24th. The Goldman Sachs Group reiterated a "buy" rating on shares of ServiceNow in a report on Thursday, April 24th. Needham & Company LLC lifted their target price on ServiceNow from $1,050.00 to $1,200.00 and gave the company a "buy" rating in a report on Thursday. Canaccord Genuity Group decreased their target price on ServiceNow from $1,275.00 to $900.00 and set a "buy" rating for the company in a report on Tuesday, April 22nd. Finally, Evercore ISI lifted their target price on ServiceNow from $925.00 to $1,000.00 and gave the company an "outperform" rating in a report on Thursday, April 24th. One research analyst has rated the stock with a sell rating, four have given a hold rating, twenty-nine have assigned a buy rating and one has given a strong buy rating to the company's stock. According to data from MarketBeat.com, ServiceNow presently has a consensus rating of "Moderate Buy" and an average target price of $1,114.87.

ServiceNow Company Profile

ServiceNow, Inc provides end to-end intelligent workflow automation platform solutions for digital businesses in the North America, Europe, the Middle East and Africa, Asia Pacific, and internationally. The company operates the Now platform for end-to-end digital transformation, artificial intelligence, machine learning, robotic process automation, process mining, performance analytics, and collaboration and development tools.