ServiceNow (NYSE:NOW) Shares Up 1.2% - What's Next?

Key Points

• ServiceNow shares rose by 1.2% during mid-day trading, reaching a price of $909.62, with a significant decline in trading volume compared to averages.
• Analysts have raised target prices for ServiceNow, with Wells Fargo and Citigroup increasing their targets to $1,225.00 and $1,234.00 respectively, indicating a strong outlook for the stock.
• The company reported $4.09 earnings per share for its recent quarter, exceeding estimates and showcasing a 22.4% year-over-year revenue increase.

ServiceNow, Inc. (NYSE:NOW - Get Free Report) shares were up 1.2% during mid-day trading on Friday . The stock traded as high as $912.86 and last traded at $909.62. Approximately 372,764 shares traded hands during trading, a decline of 78% from the average daily volume of 1,706,051 shares. The stock had previously closed at $898.56.

Wall Street Analyst Weigh In

Several analysts have commented on NOW shares. Wells Fargo & Company lifted their target price on shares of ServiceNow from $1,150.00 to $1,225.00 and gave the stock an "overweight" rating in a research note on Thursday, July 24th. Erste Group Bank reissued a "hold" rating on shares of ServiceNow in a research report on Wednesday, July 23rd. Citigroup upped their price target on shares of ServiceNow from $1,160.00 to $1,234.00 and gave the company a "buy" rating in a report on Thursday, July 24th. Raymond James Financial increased their target price on shares of ServiceNow from $1,000.00 to $1,100.00 and gave the stock an "outperform" rating in a report on Thursday, July 24th. Finally, Piper Sandler increased their target price on shares of ServiceNow from $1,120.00 to $1,150.00 and gave the company an "overweight" rating in a research report on Thursday, July 24th. One analyst has rated the stock with a Strong Buy rating, twenty-nine have given a Buy rating, three have given a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus price target of $1,115.20.

ServiceNow Trading Up 1.6%

The firm has a market cap of $189.96 billion, a P/E ratio of 115.02, a PEG ratio of 4.15 and a beta of 0.91. The company has a current ratio of 1.09, a quick ratio of 1.09 and a debt-to-equity ratio of 0.14. The business has a 50 day moving average of $938.99 and a two-hundred day moving average of $923.52.

ServiceNow (NYSE:NOW - Get Free Report) last issued its quarterly earnings data on Wednesday, July 23rd. The information technology services provider reported $4.09 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $3.57 by $0.52. ServiceNow had a return on equity of 18.04% and a net margin of 13.78%.The company had revenue of $3.22 billion during the quarter, compared to the consensus estimate of $3.12 billion. During the same period last year, the company earned $3.13 earnings per share. The firm's revenue was up 22.4% compared to the same quarter last year. Analysts predict that ServiceNow, Inc. will post 8.93 earnings per share for the current year.

Insider Buying and Selling

In related news, CEO William R. Mcdermott sold 5,825 shares of the firm's stock in a transaction on Thursday, August 28th. The stock was sold at an average price of $916.63, for a total value of $5,339,369.75. Following the transaction, the chief executive officer directly owned 6,614 shares of the company's stock, valued at approximately $6,062,590.82. This trade represents a 46.83% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, Director Anita M. Sands sold 1,097 shares of the firm's stock in a transaction dated Friday, August 29th. The shares were sold at an average price of $915.11, for a total value of $1,003,875.67. Following the sale, the director directly owned 9,307 shares in the company, valued at approximately $8,516,928.77. This represents a 10.54% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold a total of 18,976 shares of company stock worth $17,049,775 in the last 90 days. 0.38% of the stock is currently owned by company insiders.

Institutional Trading of ServiceNow

A number of hedge funds have recently bought and sold shares of the stock. Bogart Wealth LLC boosted its holdings in shares of ServiceNow by 113.3% during the 1st quarter. Bogart Wealth LLC now owns 32 shares of the information technology services provider's stock worth $25,000 after purchasing an additional 17 shares during the last quarter. Kilter Group LLC purchased a new stake in shares of ServiceNow in the second quarter valued at about $25,000. Graybill Wealth Management LTD. purchased a new position in ServiceNow during the first quarter worth about $26,000. WASHINGTON TRUST Co increased its holdings in ServiceNow by 620.0% in the first quarter. WASHINGTON TRUST Co now owns 36 shares of the information technology services provider's stock valued at $29,000 after buying an additional 31 shares in the last quarter. Finally, Global X Japan Co. Ltd. acquired a new stake in shares of ServiceNow in the second quarter valued at approximately $30,000. Hedge funds and other institutional investors own 87.18% of the company's stock.

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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