Sumitomo Mitsui Trust Group Inc. Grows Stake in ServiceNow, Inc. $NOW

Key Points

• Sumitomo Mitsui Trust Group Inc. increased its stake in ServiceNow by 2.2%, owning approximately 495,283 shares worth $509.19 million at the end of the last quarter.
• ServiceNow reported $4.09 earnings per share for the last quarter, surpassing expectations of $3.57, with revenue of $3.22 billion, reflecting a year-over-year growth of 22.4%.
• Analysts have given ServiceNow a consensus rating of "Moderate Buy" with a target price of $1,124.17 despite varied ratings from institutions, including several upgrades from firms like Morgan Stanley and Wells Fargo.

Sumitomo Mitsui Trust Group Inc. lifted its stake in shares of ServiceNow, Inc. (NYSE:NOW - Free Report) by 2.2% in the 2nd quarter, according to its most recent disclosure with the Securities and Exchange Commission. The firm owned 495,283 shares of the information technology services provider's stock after buying an additional 10,444 shares during the period. Sumitomo Mitsui Trust Group Inc. owned approximately 0.24% of ServiceNow worth $509,191,000 at the end of the most recent quarter.

Other institutional investors and hedge funds have also made changes to their positions in the company. Wealth Preservation Advisors LLC acquired a new stake in shares of ServiceNow during the first quarter worth $382,000. Corient IA LLC acquired a new stake in shares of ServiceNow during the first quarter worth $796,000. Parr Mcknight Wealth Management Group LLC acquired a new stake in shares of ServiceNow during the first quarter worth $1,820,000. ASR Vermogensbeheer N.V. acquired a new stake in shares of ServiceNow during the first quarter worth $19,278,000. Finally, Goldman Sachs Group Inc. lifted its stake in shares of ServiceNow by 131.4% during the first quarter. Goldman Sachs Group Inc. now owns 1,480,526 shares of the information technology services provider's stock worth $1,178,706,000 after buying an additional 840,731 shares during the period. 87.18% of the stock is currently owned by institutional investors and hedge funds.

ServiceNow Stock Performance

ServiceNow stock opened at $941.03 on Friday. The firm has a 50 day simple moving average of $916.59 and a 200-day simple moving average of $939.53. ServiceNow, Inc. has a 1-year low of $678.66 and a 1-year high of $1,198.09. The company has a debt-to-equity ratio of 0.14, a current ratio of 1.09 and a quick ratio of 1.09. The stock has a market cap of $195.73 billion, a price-to-earnings ratio of 118.52, a price-to-earnings-growth ratio of 4.21 and a beta of 0.92.

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

Insider Transactions at ServiceNow

In other news, Vice Chairman Nicholas Tzitzon sold 1,719 shares of the company's stock in a transaction that occurred on Monday, August 18th. The shares were sold at an average price of $866.45, for a total value of $1,489,427.55. Following the transaction, the insider directly owned 3,000 shares in the company, valued at approximately $2,599,350. This represents a 36.43% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, CFO Gina Mastantuono sold 1,762 shares of the company's stock in a transaction that occurred on Monday, August 18th. The stock was sold at an average price of $866.45, for a total transaction of $1,526,684.90. Following the completion of the transaction, the chief financial officer owned 12,228 shares in the company, valued at approximately $10,594,950.60. This represents a 12.59% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last 90 days, insiders sold 18,737 shares of company stock worth $16,798,825. 0.38% of the stock is owned by company insiders.

Wall Street Analysts Forecast Growth

Several equities research analysts have commented on the stock. Morgan Stanley raised shares of ServiceNow from an "equal weight" rating to an "overweight" rating and upped their price target for the company from $1,040.00 to $1,250.00 in a report on Wednesday, September 24th. Wells Fargo & Company boosted their target price on shares of ServiceNow from $1,150.00 to $1,225.00 and gave the stock an "overweight" rating in a research note on Thursday, July 24th. Cantor Fitzgerald reissued an "overweight" rating and set a $1,200.00 target price on shares of ServiceNow in a research note on Thursday, July 24th. Jefferies Financial Group boosted their target price on shares of ServiceNow from $1,025.00 to $1,150.00 and gave the stock a "buy" rating in a research note on Thursday, July 24th. Finally, Guggenheim reissued a "sell" rating and set a $724.00 target price on shares of ServiceNow in a research note on Thursday, July 17th. Two research analysts have rated the stock with a Strong Buy rating, thirty have issued a Buy rating, three have given a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and a consensus price target of $1,124.17.

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.

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