ServiceNow (NYSE:NOW) Shares Gap Up Following Strong Earnings

Shares of ServiceNow, Inc. (NYSE:NOW - Get Free Report) gapped up before the market opened on Thursday following a stronger than expected earnings report. The stock had previously closed at $956.43, but opened at $1,034.66. ServiceNow shares last traded at $993.07, with a volume of 1,867,474 shares changing hands.

The information technology services provider reported $4.09 EPS for the quarter, beating the consensus estimate of $3.57 by $0.52. ServiceNow had a net margin of 13.41% and a return on equity of 17.34%. The business had revenue of $3.22 billion during the quarter, compared to analyst estimates of $3.12 billion. During the same period in the prior year, the firm posted $3.13 earnings per share. The company's quarterly revenue was up 22.4% on a year-over-year basis.

Analyst Ratings Changes

NOW has been the subject of a number of analyst reports. Morgan Stanley reissued an "equal weight" rating on shares of ServiceNow in a research report on Tuesday, July 8th. Canaccord Genuity Group cut their price target on ServiceNow from $1,275.00 to $900.00 and set a "buy" rating for the company in a research note on Tuesday, April 22nd. Raymond James Financial dropped their price objective on ServiceNow from $1,200.00 to $1,000.00 and set an "outperform" rating on the stock in a report on Tuesday, April 8th. Evercore ISI increased their price objective on ServiceNow from $925.00 to $1,000.00 and gave the company an "outperform" rating in a research note on Thursday, April 24th. Finally, Erste Group Bank reiterated a "hold" rating on shares of ServiceNow in a research report on Wednesday. One equities research analyst has rated the stock with a sell rating, four have given a hold rating, thirty have issued a buy rating and one has assigned a strong buy rating to the company. According to MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and a consensus price target of $1,098.90.

Insider Buying and Selling at ServiceNow

In other news, General Counsel Russell S. Elmer sold 62 shares of the stock in a transaction dated Tuesday, May 13th. The stock was sold at an average price of $1,023.00, for a total transaction of $63,426.00. Following the transaction, the general counsel owned 4,332 shares of the company's stock, valued at approximately $4,431,636. This represents a 1.41% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Also, insider Jacqueline P. Canney sold 145 shares of the firm's stock in a transaction that occurred on Friday, May 30th. The stock was sold at an average price of $1,020.00, for a total value of $147,900.00. Following the completion of the sale, the insider owned 3,027 shares of the company's stock, valued at $3,087,540. This represents a 4.57% decrease in their position. The disclosure for this sale can be found here. In the last 90 days, insiders sold 6,601 shares of company stock worth $6,577,363. 0.38% of the stock is owned by insiders.

Institutional Investors Weigh In On ServiceNow

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

ServiceNow Price Performance

The stock has a market capitalization of $205.29 billion, a P/E ratio of 134.66, a price-to-earnings-growth ratio of 4.41 and a beta of 0.94. The company has a current ratio of 1.12, a quick ratio of 1.12 and a debt-to-equity ratio of 0.15. The business has a fifty day simple moving average of $1,002.51 and a 200 day simple moving average of $954.31.

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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