ServiceNow (NYSE:NOW) Stock Price Down 2.9% - Time to Sell?

Key Points

• ServiceNow's stock experienced a decline of 2.9%, trading at $892.40 with a significant drop in volume compared to average trading.
• Analysts have mixed opinions on the stock, with target prices ranging from $724.00 to $1,225.00 and a consensus rating of "Moderate Buy."
• In recent insider trading, executives sold shares, with one insider's sale representing a 34% decrease in their position, raising potential concerns about executive sentiment.

ServiceNow, Inc. (NYSE:NOW - Get Free Report) fell 2.9% during mid-day trading on Thursday . The stock traded as low as $878.19 and last traded at $892.40. 553,953 shares changed hands during mid-day trading, a decline of 68% from the average session volume of 1,707,011 shares. The stock had previously closed at $919.38.

Wall Street Analysts Forecast Growth

Several research firms have recently issued reports on NOW. Wells Fargo & Company upped 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. Wall Street Zen downgraded shares of ServiceNow from a "buy" rating to a "hold" rating in a report on Saturday, August 30th. Guggenheim reissued a "sell" rating and issued a $724.00 price target on shares of ServiceNow in a report on Thursday, July 17th. Erste Group Bank reissued a "hold" rating on shares of ServiceNow in a report on Wednesday, July 23rd. Finally, Mizuho boosted their price target on shares of ServiceNow from $1,050.00 to $1,100.00 and gave the stock an "outperform" rating in a report on Thursday, June 12th. 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 assigned a Sell rating to the stock. According to data from MarketBeat.com, ServiceNow has a consensus rating of "Moderate Buy" and an average target price of $1,115.20.

ServiceNow Stock Performance

The stock has a market capitalization of $186.89 billion, a PE ratio of 113.16, a P/E/G ratio of 4.14 and a beta of 0.91. The company has a debt-to-equity ratio of 0.14, a current ratio of 1.09 and a quick ratio of 1.09. The business's fifty day moving average price is $941.28 and its 200-day moving average price is $924.12.

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

Insider Buying and Selling at ServiceNow

In other news, insider Jacqueline P. Canney sold 1,562 shares of ServiceNow stock in a transaction dated Monday, August 18th. The stock was sold at an average price of $866.45, for a total value of $1,353,394.90. Following the completion of the transaction, the insider owned 3,027 shares of the company's stock, valued at $2,622,744.15. The trade was a 34.04% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, CFO Gina Mastantuono sold 1,762 shares of the business's stock in a transaction dated Monday, August 18th. The shares were sold at an average price of $866.45, for a total value of $1,526,684.90. Following the sale, the chief financial officer owned 12,228 shares of the company's stock, valued at approximately $10,594,950.60. This represents a 12.59% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last three months, insiders have sold 18,976 shares of company stock valued at $17,049,775. Company insiders own 0.38% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in the stock. Vanguard Group Inc. lifted its holdings in ServiceNow by 2.0% in the 2nd quarter. Vanguard Group Inc. now owns 19,895,063 shares of the information technology services provider's stock worth $20,453,716,000 after purchasing an additional 398,071 shares in the last quarter. State Street Corp lifted its holdings in ServiceNow by 1.7% in the 2nd quarter. State Street Corp now owns 9,323,619 shares of the information technology services provider's stock worth $9,585,426,000 after purchasing an additional 154,307 shares in the last quarter. Geode Capital Management LLC lifted its holdings in ServiceNow by 2.0% in the 2nd quarter. Geode Capital Management LLC now owns 4,574,563 shares of the information technology services provider's stock worth $4,684,445,000 after purchasing an additional 88,057 shares in the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC increased its holdings in shares of ServiceNow by 7.1% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 2,843,117 shares of the information technology services provider's stock worth $2,263,519,000 after purchasing an additional 188,292 shares during the last quarter. Finally, GAMMA Investing LLC raised its holdings in shares of ServiceNow by 87,501.3% during the 1st quarter. GAMMA Investing LLC now owns 2,689,361 shares of the information technology services provider's stock worth $2,141,108,000 after acquiring an additional 2,686,291 shares in the last quarter. 87.18% of the stock is currently owned by 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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