ServiceNow (NYSE:NOW) Stock Price Down 2.4% - Here's Why

Key Points

• ServiceNow shares fell 2.4% to about $135.21, on trading volume 17% below the average.
• Analyst sentiment remains positive overall, with a consensus “Moderate Buy” rating and a $145.71 price target, although ratings range from a $72 “underperform” target to a $160 “outperform” target.
• 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 have sold 14,081 shares worth approximately $1.94 million over the past 90 days.

ServiceNow, Inc. (NYSE:NOW - Get Free Report) dropped 2.4% on Friday . The stock traded as low as $135.07 and last traded at $135.2060. 18,811,563 shares changed hands during trading, a decline of 17% from the average daily volume of 22,796,012 shares. The stock had previously closed at $138.47.

Analysts Set New Price Targets

A number of research firms have weighed in on NOW. KeyCorp reissued an "underweight" rating on shares of ServiceNow in a research report on Tuesday, July 21st. Piper Sandler reiterated an "overweight" rating and set a $140.00 price target on shares of ServiceNow in a research report on Thursday, July 23rd. CLSA began coverage on ServiceNow in a research note on Monday, July 20th. They set an "underperform" rating and a $72.00 target price for the company. Evercore reaffirmed an "outperform" rating and set a $160.00 target price on shares of ServiceNow in a report on Thursday, July 23rd. Finally, Sanford C. Bernstein reaffirmed an "outperform" rating on shares of ServiceNow in a research note on Wednesday, September 9th. One analyst has rated the stock with a Strong Buy rating, thirty-six have assigned a Buy rating, three have given a Hold rating and two have assigned a Sell rating to the stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and a consensus price target of $145.71.

ServiceNow Stock Performance

The stock has a fifty day simple moving average of $122.82 and a 200-day simple moving average of $109.95. 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 cap of $139.80 billion, a P/E ratio of 84.50, a PEG ratio of 2.57 and a beta of 0.97.

ServiceNow (NYSE:NOW - Get Free Report) last posted its quarterly earnings data on Wednesday, July 22nd. The information technology services provider reported $0.90 EPS for the quarter, topping 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 company had revenue of $3.99 billion during the quarter, compared to the consensus estimate of $3.93 billion. During the same period in the prior year, the business posted $0.81 EPS. The company's quarterly revenue was up 24.0% on a year-over-year basis. Equities analysts expect that ServiceNow, Inc. will post 2.22 earnings per share for the current fiscal year.

Insider Transactions at ServiceNow

In related news, insider Jacqueline Canney sold 7,847 shares of the 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 transaction, the insider directly owned 30,042 shares of the company's stock, valued at $4,145,796. This represents a 20.71% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Paul Chamberlain sold 2,700 shares of the stock in a transaction on Thursday, August 27th. The shares were sold at an average price of $135.50, for a total value of $365,850.00. Following the completion of the sale, the director directly owned 43,990 shares of the company's stock, valued at $5,960,645. The trade was a 5.78% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last 90 days, insiders have sold 14,081 shares of company stock worth $1,937,904. Company insiders own 0.34% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in the stock. BlackRock Inc. bought a new position in shares of ServiceNow in the second quarter worth about $9,536,615,000. State Street Corp grew its holdings in 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 valued at $7,337,280,000 after purchasing an additional 38,441,898 shares during the last quarter. Geode Capital Management LLC increased its stake in ServiceNow by 404.8% in the 4th quarter. Geode Capital Management LLC now owns 23,512,428 shares of the information technology services provider's stock worth $3,591,425,000 after buying an additional 18,854,775 shares during the period. Norges Bank purchased a new position in ServiceNow during the 4th quarter worth $2,020,992,000. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC raised its stake in ServiceNow by 417.0% in 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 worth $2,145,412,000 after buying an additional 11,295,806 shares in the last quarter. 87.18% of the stock is owned by hedge funds and other institutional investors.

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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