ServiceNow (NYSE:NOW) Shares Down 1.7% Following Insider Selling

Key Points

• Shares fell about 1.7% after insider selling: Jacqueline P. Canney sold 66 shares and General Counsel Russell S. Elmer sold 62 shares, each trimming their positions slightly.
• ServiceNow beat Q3 estimates, reporting $4.82 EPS vs. $4.21 expected and $3.41B revenue (vs. $3.35B), with revenue up 21.8% year‑over‑year.
• The company will execute a 5‑for‑1 stock split effective December 5, and analysts hold a consensus "Moderate Buy" rating with an average price target of $1,159.66 (some targets up to $1,275).

ServiceNow, Inc. (NYSE:NOW - Get Free Report) shares traded down 1.7% during trading on Monday following insider selling activity. The stock traded as low as $828.21 and last traded at $836.0850. 1,131,246 shares traded hands during mid-day trading, a decline of 31% from the average session volume of 1,640,767 shares. The stock had previously closed at $850.43.

Specifically, insider Jacqueline P. Canney sold 66 shares of the company's stock in a transaction dated Thursday, November 13th. The shares were sold at an average price of $852.38, for a total value of $56,257.08. Following the transaction, the insider owned 3,027 shares in the company, valued at $2,580,154.26. The trade was a 2.13% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, General Counsel Russell S. Elmer sold 62 shares of the stock in a transaction that occurred on Thursday, November 13th. The shares were sold at an average price of $852.38, for a total transaction of $52,847.56. Following the sale, the general counsel owned 4,332 shares in the company, valued at approximately $3,692,510.16. The trade was a 1.41% decrease in their position. The SEC filing for this sale provides additional information.

Wall Street Analyst Weigh In

Several equities analysts recently issued reports on NOW shares. Bank of America upped their price objective on ServiceNow from $1,110.00 to $1,200.00 and gave the company a "buy" rating in a research report on Thursday, July 24th. Zacks Research cut ServiceNow from a "strong-buy" rating to a "hold" rating in a research report on Tuesday, November 11th. Royal Bank Of Canada reiterated an "outperform" rating and issued a $1,200.00 price objective on shares of ServiceNow in a report on Thursday, October 30th. Erste Group Bank restated a "hold" rating on shares of ServiceNow in a research note on Wednesday, July 23rd. Finally, Wells Fargo & Company set a $1,275.00 price target on shares of ServiceNow in a report on Thursday, October 30th. One equities research analyst has rated the stock with a Strong Buy rating, thirty-one have given a Buy rating, four have issued a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus price target of $1,159.66.

ServiceNow Price Performance

The firm has a 50-day simple moving average of $914.97 and a 200-day simple moving average of $949.35. The firm has a market capitalization of $173.91 billion, a PE ratio of 101.10, a PEG ratio of 4.11 and a beta of 0.94. The company has a debt-to-equity ratio of 0.14, a current ratio of 1.09 and a quick ratio of 1.09.

Shares of ServiceNow are going to split before the market opens on Friday, December 5th. The 5-1 split was announced on Wednesday, October 29th. The newly issued shares will be distributed to shareholders after the market closes on Thursday, December 4th.

ServiceNow (NYSE:NOW - Get Free Report) last issued its quarterly earnings results on Wednesday, October 29th. The information technology services provider reported $4.82 earnings per share for the quarter, topping the consensus estimate of $4.21 by $0.61. The business had revenue of $3.41 billion for the quarter, compared to analysts' expectations of $3.35 billion. ServiceNow had a net margin of 13.66% and a return on equity of 19.23%. The company's revenue was up 21.8% compared to the same quarter last year. During the same quarter last year, the company posted $3.72 EPS. As a group, equities analysts forecast that ServiceNow, Inc. will post 8.93 earnings per share for the current year.

Institutional Inflows and Outflows

A number of large investors have recently made changes to their positions in the stock. Haverford Trust Co lifted its holdings in ServiceNow by 0.9% during the first quarter. Haverford Trust Co now owns 1,176 shares of the information technology services provider's stock valued at $936,000 after purchasing an additional 10 shares in the last quarter. Ascent Group LLC increased its stake in shares of ServiceNow by 0.5% in the first quarter. Ascent Group LLC now owns 2,045 shares of the information technology services provider's stock worth $1,628,000 after purchasing an additional 10 shares in the last quarter. Edgemoor Investment Advisors Inc. raised its position in shares of ServiceNow by 2.5% during the 1st quarter. Edgemoor Investment Advisors Inc. now owns 459 shares of the information technology services provider's stock valued at $366,000 after purchasing an additional 11 shares during the period. Integrated Investment Consultants LLC lifted its stake in shares of ServiceNow by 2.5% during the 1st quarter. Integrated Investment Consultants LLC now owns 450 shares of the information technology services provider's stock valued at $358,000 after buying an additional 11 shares in the last quarter. Finally, one8zero8 LLC boosted its holdings in ServiceNow by 3.2% in the 1st quarter. one8zero8 LLC now owns 356 shares of the information technology services provider's stock worth $283,000 after buying an additional 11 shares during the period. 87.18% of the stock is owned by hedge funds and other institutional investors.

About ServiceNow

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.

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