ServiceNow (NYSE:NOW) Shares Down 1.4% - Time to Sell?

Key Points

• ServiceNow shares fell 1.4% to about $135.88 in midday trading, on volume 67% below the average session level.
• Analysts remain broadly bullish, with a consensus “Moderate Buy” rating and an average price target of $147; recent targets range as high as $174.
• The company exceeded quarterly expectations, reporting $0.90 in EPS and $3.99 billion in revenue, with revenue up 24% year over year. However, insiders sold 14,081 shares worth approximately $1.94 million over the past 90 days.

ServiceNow, Inc. (NYSE:NOW - Get Free Report) shares traded down 1.4% during mid-day trading on Friday. The company traded as low as $135.60 and last traded at $135.8810. 7,448,218 shares were traded during mid-day trading, a decline of 67% from the average session volume of 22,455,693 shares. The stock had previously closed at $137.78.

Wall Street Analysts Forecast Growth

Several research analysts recently weighed in on the company. KeyCorp reissued an "underweight" rating on shares of ServiceNow in a research report on Tuesday, July 21st. Bank of America increased their target price on shares of ServiceNow from $130.00 to $150.00 and gave the stock a "buy" rating in a research report on Wednesday, August 19th. Cantor Fitzgerald upped their price objective on shares of ServiceNow from $141.00 to $174.00 and gave the stock an "overweight" rating in a report on Monday. BMO Capital Markets upped their target price on ServiceNow from $115.00 to $118.00 and gave the stock an "outperform" rating in a research report on Thursday, July 23rd. Finally, JPMorgan Chase & Co. increased their price target on ServiceNow from $145.00 to $150.00 and gave the company an "overweight" rating in a report on Thursday, July 23rd. One investment analyst has rated the stock with a Strong Buy rating, thirty-six have given a Buy rating, three have assigned a Hold rating and two have given a Sell rating to the company. According to data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average target price of $147.00.

ServiceNow Trading Down 1.4%

The company has a debt-to-equity ratio of 0.43, a quick ratio of 0.70 and a current ratio of 0.70. The company's 50 day moving average is $125.94 and its 200 day moving average is $110.70. The stock has a market capitalization of $140.50 billion, a price-to-earnings ratio of 84.93, a PEG ratio of 2.52 and a beta of 0.97.

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

Insider Buying and Selling

In other ServiceNow news, insider Jacqueline Canney sold 7,847 shares of ServiceNow stock in a transaction on Friday, August 28th. The shares were sold at an average price of $138.00, for a total transaction of $1,082,886.00. Following the sale, the insider owned 30,042 shares in the company, valued at $4,145,796. The trade was a 20.71% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Paul Fipps sold 2,034 shares of the stock in a transaction on Monday, August 31st. The shares were sold at an average price of $147.87, for a total transaction of $300,767.58. Following the completion of the transaction, the insider owned 18,305 shares of the company's stock, valued at approximately $2,706,760.35. This represents a 10.00% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold a total of 14,081 shares of company stock valued at $1,937,904 over the last ninety days. 0.34% of the stock is owned by company insiders.

Institutional Trading of ServiceNow

Several institutional investors have recently bought and sold shares of the stock. Blueline Advisors LLC bought a new stake in shares of ServiceNow in the 4th quarter worth about $25,000. Measured Wealth Private Client Group LLC boosted its position in ServiceNow by 560.0% in the fourth quarter. Measured Wealth Private Client Group LLC now owns 165 shares of the information technology services provider's stock valued at $25,000 after buying an additional 140 shares in the last quarter. Evolution Wealth Management Inc. grew its stake in ServiceNow by 414.3% during the fourth quarter. Evolution Wealth Management Inc. now owns 180 shares of the information technology services provider's stock worth $28,000 after buying an additional 145 shares during the last quarter. DT Investment Partners LLC increased its holdings in shares of ServiceNow by 400.0% during the fourth quarter. DT Investment Partners LLC now owns 195 shares of the information technology services provider's stock worth $30,000 after buying an additional 156 shares in the last quarter. Finally, Howard Hughes Medical Institute raised its stake in shares of ServiceNow by 404.5% in the fourth quarter. Howard Hughes Medical Institute now owns 222 shares of the information technology services provider's stock valued at $34,000 after acquiring an additional 178 shares during the last quarter. Institutional investors and hedge funds own 87.18% of the company's stock.

About ServiceNow

ServiceNow, Inc is a cloud-based enterprise software company that provides digital workflow and automation solutions. Its Now Platform enables organizations to manage and connect business processes across information technology, customer service, human resources, finance, legal operations and other departments.

The company's products and services include IT service management, IT operations management, customer service management, human resources service delivery, security operations, risk and compliance management, strategic portfolio management and application development tools.

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