ServiceNow (NYSE:NOW) Rating Lowered to "Hold" at Wall Street Zen

Key Points

• ServiceNow has been downgraded by Wall Street Zen from a "buy" to a "hold" rating, reflecting a shift in analyst sentiment regarding the stock's performance.
• Despite the downgrade, other analysts continue to show optimism, with some raising their price targets for ServiceNow stock to $1,100.00 and maintaining an "outperform" rating.
• The company reported a quarterly EPS of $4.09, exceeding expectations and demonstrating a 22.4% revenue increase year-over-year.

Wall Street Zen downgraded shares of ServiceNow (NYSE:NOW - Free Report) from a buy rating to a hold rating in a research note published on Saturday morning.

NOW has been the topic of several other research reports. Needham & Company LLC raised their target price on shares of ServiceNow from $1,050.00 to $1,200.00 and gave the company a "buy" rating in a research note on Thursday, July 24th. Piper Sandler boosted their target price on ServiceNow from $1,120.00 to $1,150.00 and gave the stock an "overweight" rating in a research report on Thursday, July 24th. Wells Fargo & Company increased their price target on shares of ServiceNow from $1,150.00 to $1,225.00 and gave the company an "overweight" rating in a research report on Thursday, July 24th. Barclays set a $1,210.00 price objective on shares of ServiceNow in a report on Thursday, July 24th. Finally, Bank of America upped their target price on shares of ServiceNow from $1,110.00 to $1,200.00 and gave the company a "buy" rating in a research note on Thursday, July 24th. One equities research analyst has rated the stock with a Strong Buy rating, twenty-nine have given a Buy rating, three have issued a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and a consensus target price of $1,115.20.

ServiceNow Price Performance

Shares of NOW traded down $10.12 during mid-day trading on Friday, hitting $918.49. 1,881,767 shares of the company traded hands, compared to its average volume of 1,914,586. The business has a 50-day moving average of $945.88 and a 200 day moving average of $925.54. The stock has a market capitalization of $191.04 billion, a price-to-earnings ratio of 115.68, a PEG ratio of 4.19 and a beta of 0.93. ServiceNow has a one year low of $678.66 and a one year high of $1,198.09. The company has a current ratio of 1.09, a quick ratio of 1.09 and a debt-to-equity ratio of 0.14.

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

Insider Transactions at ServiceNow

In other ServiceNow news, insider Jacqueline P. Canney sold 1,562 shares of ServiceNow stock in a transaction dated Monday, August 18th. The stock was sold at an average price of $866.45, for a total value of $1,353,394.90. Following the sale, the insider owned 3,027 shares of the company's stock, valued at $2,622,744.15. This trade represents a 34.04% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. Also, Vice Chairman Nicholas Tzitzon sold 1,719 shares of the business's stock in a transaction dated 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 completion of the sale, the insider owned 3,000 shares in the company, valued at approximately $2,599,350. This trade represents a 36.43% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last 90 days, insiders sold 12,302 shares of company stock worth $10,956,796. Company insiders own 0.38% of the company's stock.

Institutional Trading of ServiceNow

A number of hedge funds and other institutional investors have recently made changes to their positions in the business. Evolution Wealth Management Inc. bought a new position in ServiceNow in the second quarter valued at approximately $36,000. Total Investment Management Inc. bought a new position in shares of ServiceNow in the second quarter valued at $31,000. Centaurus Financial Inc. raised its position in ServiceNow by 4.4% during the second quarter. Centaurus Financial Inc. now owns 1,895 shares of the information technology services provider's stock worth $1,948,000 after acquiring an additional 80 shares in the last quarter. Orion Porfolio Solutions LLC lifted its stake in ServiceNow by 7.8% in the second quarter. Orion Porfolio Solutions LLC now owns 23,772 shares of the information technology services provider's stock valued at $24,439,000 after acquiring an additional 1,717 shares during the last quarter. Finally, Munro Partners bought a new position in shares of ServiceNow in the 2nd quarter valued at about $61,783,000. 87.18% of the stock is currently owned by institutional investors and hedge funds.

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.