ServiceNow (NYSE:NOW) Shares Down 1.4% - What's Next?

Key Points

• ServiceNow shares fell 1.4% to about $139.90 on trading volume that was 57% below average.
• Analysts remain broadly bullish, with a “Moderate Buy” consensus, 36 Buy ratings, and an average price target of $145.71.
• The company beat quarterly expectations with $0.90 in EPS and $3.99 billion in revenue, up 24% year over year; institutional investors own 87.18% of the stock.

ServiceNow, Inc. (NYSE:NOW - Get Free Report) traded down 1.4% on Wednesday . The stock traded as low as $138.33 and last traded at $139.8970. Approximately 9,806,187 shares were traded during trading, a decline of 57% from the average session volume of 22,896,064 shares. The stock had previously closed at $141.90.

Wall Street Analysts Forecast Growth

A number of brokerages recently issued reports on NOW. Citic Securities lowered their price target on ServiceNow from $168.00 to $140.00 and set a "buy" rating for the company in a research report on Thursday, May 21st. Truist Financial boosted their price objective on shares of ServiceNow from $120.00 to $130.00 and gave the company a "buy" rating in a research report on Thursday, July 9th. Benchmark reissued a "buy" rating on shares of ServiceNow in a research note on Friday, July 17th. Bank of America raised their target price on shares of ServiceNow from $130.00 to $150.00 and gave the stock a "buy" rating in a report on Wednesday, August 19th. Finally, Piper Sandler reaffirmed an "overweight" rating and set a $140.00 price target 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-six have given a Buy rating, three have given a Hold rating and two have given a Sell rating to the company. According to data from MarketBeat, ServiceNow presently has a consensus rating of "Moderate Buy" and a consensus price target of $145.71.

ServiceNow Price Performance

The stock's 50 day moving average price is $121.59 and its 200-day moving average price is $109.52. The company has a quick ratio of 0.70, a current ratio of 0.70 and a debt-to-equity ratio of 0.43. The stock has a market capitalization of $144.65 billion, a PE ratio of 87.44, a price-to-earnings-growth ratio of 2.61 and a beta of 0.97.

ServiceNow (NYSE:NOW - Get Free Report) last posted its quarterly earnings results on Wednesday, July 22nd. The information technology services provider reported $0.90 EPS for the quarter, topping the consensus estimate of $0.86 by $0.04. ServiceNow had a net margin of 11.34% and a return on equity of 16.45%. The company had revenue of $3.99 billion for the quarter, compared to the consensus estimate of $3.93 billion. During the same quarter last year, the firm posted $0.81 EPS. The firm's revenue was up 24.0% compared to the same quarter last year. As a group, equities analysts forecast that ServiceNow, Inc. will post 2.22 EPS for the current year.

Insider Transactions at ServiceNow

In other ServiceNow news, insider Jacqueline P. Canney sold 7,847 shares of the firm's stock in a transaction on Friday, August 28th. The stock was sold at an average price of $138.00, for a total transaction of $1,082,886.00. Following the transaction, the insider directly owned 30,042 shares in the company, valued at $4,145,796. This trade represents a 20.71% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Paul Fipps sold 2,034 shares of the company's stock in a transaction dated Monday, August 31st. The stock was sold at an average price of $147.87, for a total transaction of $300,767.58. Following the completion of the sale, the insider directly owned 18,305 shares of the company's stock, valued at approximately $2,706,760.35. This trade represents a 10.00% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last three months, insiders have sold 14,081 shares of company stock valued at $1,937,904. 0.34% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On ServiceNow

Institutional investors have recently bought and sold shares of the business. BlackRock Inc. purchased a new position in shares of ServiceNow in the 2nd quarter valued at $9,536,615,000. State Street Corp lifted its stake in shares of ServiceNow by 406.6% during the 4th quarter. State Street Corp now owns 47,896,597 shares of the information technology services provider's stock worth $7,337,280,000 after purchasing an additional 38,441,898 shares during the last quarter. Geode Capital Management LLC boosted its position 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 purchasing an additional 18,854,775 shares in the last quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC boosted its position in ServiceNow by 417.0% during the fourth quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 14,004,910 shares of the information technology services provider's stock valued at $2,145,412,000 after purchasing an additional 11,295,806 shares in the last quarter. Finally, Norges Bank purchased a new position in ServiceNow in the fourth quarter valued at about $2,020,992,000. 87.18% of the stock is owned by hedge funds and other institutional investors.

ServiceNow Company Profile

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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