ServiceNow (NYSE:NOW) Shares Down 2.2% - Should You Sell?

Key Points

• ServiceNow's stock price fell by 2.2% on Tuesday, trading as low as $861.17, with a significantly reduced trading volume of 385,987 shares, down 77% from its average daily volume.
• Equity analysts remain positive on ServiceNow, with multiple firms raising their price targets; the average target price is currently $1,115.20 and most analysts rate the stock as a "Moderate Buy."
• In its latest earnings report, ServiceNow reported $4.09 EPS, exceeding expectations and marking a 22.4% increase in quarterly revenue compared to last year.

ServiceNow, Inc. (NYSE:NOW - Get Free Report) dropped 2.2% on Tuesday . The company traded as low as $861.17 and last traded at $860.85. Approximately 385,987 shares were traded during mid-day trading, a decline of 77% from the average daily volume of 1,698,717 shares. The stock had previously closed at $879.94.

Analyst Ratings Changes

A number of equities analysts recently commented on the stock. Jefferies Financial Group lifted their target price on shares of ServiceNow from $1,025.00 to $1,150.00 and gave the stock a "buy" rating in a research report on Thursday, July 24th. Mizuho lifted their price objective on ServiceNow from $1,050.00 to $1,100.00 and gave the company an "outperform" rating in a research report on Thursday, June 12th. Cantor Fitzgerald restated an "overweight" rating and issued a $1,200.00 price objective on shares of ServiceNow in a report on Thursday, July 24th. Needham & Company LLC raised their target price on shares of ServiceNow from $1,050.00 to $1,200.00 and gave the stock a "buy" rating in a report on Thursday, July 24th. Finally, Piper Sandler increased their price target on shares of ServiceNow from $1,120.00 to $1,150.00 and gave the stock an "overweight" rating in a research report on Thursday, July 24th. One investment analyst has rated the stock with a Strong Buy rating, twenty-nine have issued a Buy rating, three have assigned a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, the company has an average rating of "Moderate Buy" and an average target price of $1,115.20.

ServiceNow Trading Down 2.2%

The company has a quick ratio of 1.09, a current ratio of 1.09 and a debt-to-equity ratio of 0.14. The company's 50 day moving average price is $952.50 and its two-hundred day moving average price is $927.48. The firm has a market cap of $178.97 billion, a PE ratio of 108.53, a P/E/G ratio of 4.00 and a beta of 0.93.

ServiceNow (NYSE:NOW - Get Free Report) last posted its 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. The company had revenue of $3.22 billion for the quarter, compared to analyst estimates of $3.12 billion. ServiceNow had a return on equity of 18.04% and a net margin of 13.78%.The firm's quarterly revenue was up 22.4% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $3.13 earnings per share. As a group, sell-side analysts forecast that ServiceNow, Inc. will post 8.93 EPS for the current year.

Insiders Place Their Bets

In other news, Vice Chairman Nicholas Tzitzon sold 1,719 shares of the firm's stock in a transaction that occurred on Monday, August 18th. The shares were sold at an average price of $866.45, for a total transaction of $1,489,427.55. Following the completion of the transaction, the insider directly owned 3,000 shares of the company's stock, valued at $2,599,350. This trade represents a 36.43% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, CEO William R. Mcdermott sold 2,050 shares of ServiceNow stock in a transaction dated Friday, May 30th. The shares were sold at an average price of $1,012.01, for a total value of $2,074,620.50. Following the completion of the sale, the chief executive officer owned 6,614 shares of the company's stock, valued at $6,693,434.14. This trade represents a 23.66% decrease in their position. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 15,668 shares of company stock worth $14,373,737. Corporate insiders own 0.38% of the company's stock.

Institutional Trading of ServiceNow

Several hedge funds have recently made changes to their positions in NOW. Brighton Jones LLC lifted its holdings in shares of ServiceNow by 1.1% in the fourth quarter. Brighton Jones LLC now owns 2,753 shares of the information technology services provider's stock valued at $2,919,000 after buying an additional 30 shares during the period. Quarry LP bought a new stake in shares of ServiceNow in the 4th quarter worth approximately $27,000. Marshall & Sterling Wealth Advisors Inc. bought a new stake in shares of ServiceNow in the 4th quarter worth approximately $642,000. Insight Holdings Group LLC increased its stake in ServiceNow by 759.5% in the fourth quarter. Insight Holdings Group LLC now owns 31,800 shares of the information technology services provider's stock valued at $33,712,000 after acquiring an additional 28,100 shares during the period. Finally, The Manufacturers Life Insurance Company increased its stake in ServiceNow by 3.5% in the fourth quarter. The Manufacturers Life Insurance Company now owns 184,745 shares of the information technology services provider's stock valued at $195,860,000 after acquiring an additional 6,232 shares during the period. Institutional investors own 87.18% of the company's stock.

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.

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