ServiceNow (NYSE:NOW) Stock Price Expected to Rise, Benchmark Analyst Says

Key Points

• Benchmark raised its price target on ServiceNow from $125 to $130 and kept a buy rating, implying about 27% upside from the prior close. The move comes amid generally positive analyst sentiment on the stock.
• Wall Street’s broader view remains constructive: ServiceNow has a consensus Moderate Buy rating, with 35 Buy ratings and an average price target of $141.97. A few firms have trimmed targets, but most analysts still expect gains.
• ServiceNow recently reported Q1 earnings in line with estimates at $0.97 per share, while revenue of $3.77 billion topped expectations and rose 22.1% year over year. The stock was trading around $102.34, below its 200-day average of $119.74.

ServiceNow (NYSE:NOW - Get Free Report) had its price objective hoisted by analysts at Benchmark from $125.00 to $130.00 in a report released on Monday,Benzinga reports. The firm currently has a "buy" rating on the information technology services provider's stock. Benchmark's price target would indicate a potential upside of 27.03% from the stock's previous close.

Several other equities analysts have also commented on NOW. Needham & Company LLC reissued a "buy" rating and issued a $115.00 target price on shares of ServiceNow in a report on Tuesday, May 5th. HSBC decreased their target price on shares of ServiceNow from $226.00 to $171.00 and set a "buy" rating on the stock in a report on Thursday, April 16th. Oppenheimer reissued an "outperform" rating on shares of ServiceNow in a report on Tuesday, May 26th. Wall Street Zen lowered shares of ServiceNow from a "buy" rating to a "hold" rating in a report on Saturday, February 28th. Finally, Truist Financial decreased their target price on shares of ServiceNow from $125.00 to $120.00 and set a "buy" rating on the stock in a report on Thursday, April 23rd. One analyst has rated the stock with a Strong Buy rating, thirty-five have given a Buy rating, five have given a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, ServiceNow currently has a consensus rating of "Moderate Buy" and an average price target of $141.97.

ServiceNow Price Performance

Shares of ServiceNow stock opened at $102.34 on Monday. ServiceNow has a twelve month low of $81.24 and a twelve month high of $211.48. The company has a quick ratio of 0.84, a current ratio of 0.84 and a debt-to-equity ratio of 0.13. The company has a 50-day simple moving average of $99.80 and a two-hundred day simple moving average of $119.74. The stock has a market capitalization of $105.51 billion, a price-to-earnings ratio of 60.99, a price-to-earnings-growth ratio of 1.69 and a beta of 0.94.

ServiceNow (NYSE:NOW - Get Free Report) last issued its quarterly earnings data on Wednesday, April 22nd. The information technology services provider reported $0.97 earnings per share for the quarter, hitting the consensus estimate of $0.97. ServiceNow had a net margin of 12.59% and a return on equity of 18.16%. The business had revenue of $3.77 billion during the quarter, compared to analysts' expectations of $3.75 billion. During the same quarter in the previous year, the company earned $0.81 EPS. The business's revenue was up 22.1% on a year-over-year basis. Analysts forecast that ServiceNow will post 2.35 EPS for the current year.

Insider Activity at ServiceNow

In related news, insider Jacqueline P. Canney sold 8,927 shares of ServiceNow stock in a transaction that occurred on Friday, April 24th. The shares were sold at an average price of $89.60, for a total transaction of $799,859.20. Following the sale, the insider directly owned 29,531 shares of the company's stock, valued at approximately $2,645,977.60. The trade was a 23.21% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, Director Paul Edward Chamberlain sold 1,500 shares of ServiceNow stock in a transaction that occurred on Thursday, May 14th. The shares were sold at an average price of $87.23, for a total transaction of $130,845.00. Following the sale, the director directly owned 44,930 shares in the company, valued at $3,919,243.90. This trade represents a 3.23% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders sold 28,071 shares of company stock valued at $2,529,956. Company insiders own 0.34% of the company's stock.

Institutional Investors Weigh In On ServiceNow

Hedge funds have recently added to or reduced their stakes in the business. IAG Wealth Partners LLC lifted its position in shares of ServiceNow by 200.0% in the 3rd quarter. IAG Wealth Partners LLC now owns 27 shares of the information technology services provider's stock worth $25,000 after purchasing an additional 18 shares during the period. Noble Wealth Management PBC lifted its position in shares of ServiceNow by 400.0% in the 4th quarter. Noble Wealth Management PBC now owns 160 shares of the information technology services provider's stock worth $25,000 after purchasing an additional 128 shares during the period. Millstone Evans Group LLC lifted its position in shares of ServiceNow by 400.0% in the 4th quarter. Millstone Evans Group LLC now owns 165 shares of the information technology services provider's stock worth $25,000 after purchasing an additional 132 shares during the period. CBIZ Investment Advisory Services LLC lifted its position in shares of ServiceNow by 540.0% in the 4th quarter. CBIZ Investment Advisory Services LLC now owns 160 shares of the information technology services provider's stock worth $25,000 after purchasing an additional 135 shares during the period. Finally, Blueline Advisors LLC acquired a new position in shares of ServiceNow in the 4th quarter worth approximately $25,000. 87.18% of the stock is currently owned by institutional investors and hedge funds.

ServiceNow Company Profile

ServiceNow NYSE: NOW is a cloud computing company that builds enterprise software to manage digital workflows and automate business processes. Its offerings are designed to replace manual work and legacy systems with cloud-based, service-oriented applications that support IT operations, customer service, human resources, security response and other enterprise functions.

The company's flagship product family is the Now Platform, a suite of subscription software and platform services that includes IT Service Management (ITSM), IT Operations Management (ITOM), IT Business Management (ITBM), Customer Service Management (CSM), HR Service Delivery, Security Operations and Asset Management.

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