ServiceNow (NYSE:NOW) Given New $130.00 Price Target at Truist Financial

Key Points

• Truist Financial raised its price target on ServiceNow from $120 to $130 while keeping a buy rating. The new target implies about 20.7% upside from the prior close.
• Analyst sentiment on ServiceNow remains broadly positive, with a consensus rating of Moderate Buy and an average price target of $141.47. Across Wall Street, 36 analysts rate it a Buy, while only one has a Sell.
• ServiceNow’s latest quarterly results were solid, as it met EPS estimates and slightly beat revenue expectations with 22.1% year-over-year revenue growth. The company also saw notable insider selling and continued heavy institutional ownership at 87.18%.

ServiceNow (NYSE:NOW - Get Free Report) had its target price increased by stock analysts at Truist Financial from $120.00 to $130.00 in a note issued to investors on Thursday,Benzinga reports. The brokerage currently has a "buy" rating on the information technology services provider's stock. Truist Financial's price objective suggests a potential upside of 20.69% from the stock's previous close.

NOW has been the topic of a number of other reports. Raymond James Financial dropped their price objective on ServiceNow from $160.00 to $130.00 and set an "outperform" rating on the stock in a research note on Thursday, April 23rd. Barclays reaffirmed an "overweight" rating and set a $134.00 target price (up from $132.00) on shares of ServiceNow in a research note on Tuesday, May 5th. Jefferies Financial Group reiterated a "buy" rating and issued a $135.00 target price (down from $175.00) on shares of ServiceNow in a report on Thursday, April 23rd. Needham & Company LLC reissued a "buy" rating and issued a $115.00 price target on shares of ServiceNow in a research note on Tuesday, May 5th. Finally, TD Cowen restated a "buy" rating and set a $140.00 price target on shares of ServiceNow in a report on Thursday, April 23rd. One equities research analyst has rated the stock with a Strong Buy rating, thirty-six have given a Buy rating, four have assigned a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, the company has a consensus rating of "Moderate Buy" and an average price target of $141.47.

ServiceNow Trading Down 0.1%

NOW opened at $107.71 on Thursday. ServiceNow has a twelve month low of $81.24 and a twelve month high of $210.20. The company has a fifty day moving average of $101.74 and a 200-day moving average of $111.62. The stock has a market cap of $111.05 billion, a PE ratio of 63.75, a price-to-earnings-growth ratio of 1.84 and a beta of 0.96. The company has a quick ratio of 0.84, a current ratio of 0.84 and a debt-to-equity ratio of 0.13.

ServiceNow (NYSE:NOW - Get Free Report) last released its earnings results on Wednesday, April 22nd. The information technology services provider reported $0.97 earnings per share (EPS) for the quarter, meeting the consensus estimate of $0.97. ServiceNow had a net margin of 12.59% and a return on equity of 18.16%. The business had revenue of $3.77 billion for the quarter, compared to analyst estimates of $3.75 billion. During the same quarter in the previous year, the business earned $0.81 earnings per share. ServiceNow's revenue for the quarter was up 22.1% on a year-over-year basis. On average, sell-side analysts predict that ServiceNow will post 2.34 EPS for the current year.

Insider Transactions at ServiceNow

In related news, Director Anita M. Sands sold 16,445 shares of ServiceNow stock in a transaction on Thursday, May 14th. The shares were sold at an average price of $90.14, for a total value of $1,482,352.30. Following the completion of the sale, the director owned 30,090 shares of the company's stock, valued at approximately $2,712,312.60. This trade represents a 35.34% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, Director Paul Edward Chamberlain sold 1,500 shares of the business's stock in a transaction on Thursday, May 14th. The shares were sold at an average price of $87.23, for a total transaction of $130,845.00. Following the sale, the director owned 44,930 shares of the company's stock, valued at $3,919,243.90. This trade represents a 3.23% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 28,071 shares of company stock valued at $2,529,956 in the last 90 days. 0.34% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On ServiceNow

A number of institutional investors and hedge funds have recently made changes to their positions in NOW. Sunburst Financial Group LLC raised its stake in shares of ServiceNow by 26.2% in the second quarter. Sunburst Financial Group LLC now owns 4,859 shares of the information technology services provider's stock worth $482,000 after purchasing an additional 1,008 shares during the last quarter. Gradient Investments LLC grew its holdings in ServiceNow by 39.9% during the second quarter. Gradient Investments LLC now owns 259,557 shares of the information technology services provider's stock worth $25,769,000 after buying an additional 74,064 shares in the last quarter. Atwood & Palmer Inc. grew its holdings in ServiceNow by 20.0% during the second quarter. Atwood & Palmer Inc. now owns 600 shares of the information technology services provider's stock worth $60,000 after buying an additional 100 shares in the last quarter. First Heartland Consultants Inc. raised its position in ServiceNow by 74.7% in the 2nd quarter. First Heartland Consultants Inc. now owns 6,240 shares of the information technology services provider's stock valued at $620,000 after buying an additional 2,668 shares during the last quarter. Finally, Teamwork Financial Advisors LLC raised its position in ServiceNow by 389.2% in the 2nd quarter. Teamwork Financial Advisors LLC now owns 154,649 shares of the information technology services provider's stock valued at $15,354,000 after buying an additional 123,035 shares during the last quarter. Institutional investors and hedge funds own 87.18% of the company's stock.

Key Headlines Impacting ServiceNow

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: ServiceNow’s latest results were described as solid, with revenue and earnings meeting or topping expectations, which argues the business is still executing well despite the stock’s weakness. ServiceNow (NOW) Sold Off Despite a Solid Result
• Positive Sentiment: Fresh analyst commentary from Guggenheim helped sentiment, with the firm upgrading ServiceNow and saying the bearish “AI extinction” thesis looks less convincing. This analyst upgraded Salesforce & ServiceNow, but not because they'll be AI winners
• Positive Sentiment: Interest in the stock remains high, and several recent articles highlight ServiceNow’s AI platform momentum, security-focused acquisitions, and positioning in cloud/software spending. ServiceNow, Inc. (NOW) is Attracting Investor Attention: Here is What You Should Know
• Neutral Sentiment: Other coverage was mostly broad sector commentary, including cloud-computing stock ideas and a software-sector rotation story, which may support the shares indirectly but does not appear ServiceNow-specific. 3 Cloud Computing Stocks to Buy Before Earnings Season in July
• Negative Sentiment: Some recent articles focus on why ServiceNow has fallen sharply this year, reflecting investor concern about valuation and future growth expectations. Why ServiceNow Stock Plunged 36% in the First Half of the Year

About ServiceNow

ServiceNow NYSE: NOW is a cloud computing company that builds enterprise software to manage digital workflows and automate business processes. Its offerings are designed to replace manual work and legacy systems with cloud-based, service-oriented applications that support IT operations, customer service, human resources, security response and other enterprise functions.

The company's flagship product family is the Now Platform, a suite of subscription software and platform services that includes IT Service Management (ITSM), IT Operations Management (ITOM), IT Business Management (ITBM), Customer Service Management (CSM), HR Service Delivery, Security Operations and Asset Management.

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