ServiceNow (NYSE:NOW) Shares Up 1.3% - Here's Why

Key Points

• ServiceNow's stock rose by 1.3% to $925.25, despite an 82% decline in trading volume compared to its average.
• Wall Street analysts have mixed ratings for ServiceNow, with one rating it a Strong Buy while others have downgraded it to Hold or maintained Equal Weight ratings.
• The company reported a 22.4% increase in year-over-year revenue with earnings per share (EPS) of $4.09, surpassing analysts’ expectations of $3.57.

ServiceNow, Inc. (NYSE:NOW - Get Free Report) rose 1.3% on Monday . The stock traded as high as $928.80 and last traded at $925.25. Approximately 306,919 shares changed hands during trading, a decline of 82% from the average daily volume of 1,703,102 shares. The stock had previously closed at $913.80.

Analyst Upgrades and Downgrades

Several analysts have recently commented on NOW shares. Wall Street Zen lowered ServiceNow from a "buy" rating to a "hold" rating in a report on Saturday, August 30th. Morgan Stanley reaffirmed an "equal weight" rating on shares of ServiceNow in a report on Tuesday, July 8th. FBN Securities upgraded shares of ServiceNow to a "strong-buy" rating in a research report on Wednesday, June 11th. Bank of America raised their price objective on shares of ServiceNow from $1,110.00 to $1,200.00 and gave the stock a "buy" rating in a report on Thursday, July 24th. Finally, Cantor Fitzgerald reaffirmed an "overweight" rating and set a $1,200.00 price objective on shares of ServiceNow in a research report on Thursday, July 24th. One investment analyst has rated the stock with a Strong Buy rating, twenty-nine have assigned a Buy rating, three have given a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price of $1,115.20.

ServiceNow Price Performance

The stock has a market capitalization of $195.53 billion, a P/E ratio of 118.43, a P/E/G ratio of 4.12 and a beta of 0.91. 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 firm has a fifty day moving average price of $936.79 and a two-hundred day moving average price of $922.19.

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

Insider Activity

In other news, General Counsel Russell S. Elmer sold 1,698 shares of the company's stock in a transaction dated Wednesday, August 20th. The shares were sold at an average price of $884.26, for a total transaction of $1,501,473.48. Following the completion of the transaction, the general counsel owned 4,332 shares of the company's stock, valued at approximately $3,830,614.32. This represents a 28.16% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, insider Paul Fipps sold 1,452 shares of the stock in a transaction that occurred on Wednesday, August 20th. The shares were sold at an average price of $895.05, for a total transaction of $1,299,612.60. Following the sale, the insider directly owned 457 shares in the company, valued at $409,037.85. This trade represents a 76.06% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 18,976 shares of company stock worth $17,049,775 in the last quarter. 0.38% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On ServiceNow

Hedge funds have recently bought and sold shares of the company. Haverford Trust Co increased its position in ServiceNow by 0.9% in the 1st 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 period. Ascent Group LLC boosted its position in ServiceNow by 0.5% during the first quarter. Ascent Group LLC now owns 2,045 shares of the information technology services provider's stock valued at $1,628,000 after purchasing an additional 10 shares during the last quarter. Edgemoor Investment Advisors Inc. grew its position in ServiceNow by 2.5% during the first quarter. Edgemoor Investment Advisors Inc. now owns 459 shares of the information technology services provider's stock worth $366,000 after buying an additional 11 shares in the last quarter. Integrated Investment Consultants LLC increased its holdings in ServiceNow by 2.5% in the 1st quarter. Integrated Investment Consultants LLC now owns 450 shares of the information technology services provider's stock worth $358,000 after purchasing an additional 11 shares in the last quarter. Finally, one8zero8 LLC lifted its stake in ServiceNow by 3.2% in the first quarter. one8zero8 LLC now owns 356 shares of the information technology services provider's stock valued at $283,000 after buying an additional 11 shares during the period. 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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