ServiceNow (NYSE:NOW) Stock Price Up 1.6% - Should You Buy?

Key Points

• ServiceNow shares rose 1.6% on Monday, trading as high as $103.21 and slightly above its prior close, with volume a bit above average.
• Wall Street remains broadly bullish: the stock has an average “Moderate Buy” rating and a consensus price target of $142.17, though analyst targets range from $85 to $157.
• The company’s latest earnings were solid, with EPS of $0.97 matching estimates and revenue of $3.77 billion topping expectations; revenue grew 22.1% year over year.

ServiceNow, Inc. (NYSE:NOW - Get Free Report) was up 1.6% during trading on Monday . The stock traded as high as $103.21 and last traded at $99.8950. 24,790,248 shares traded hands during trading, an increase of 3% from the average daily volume of 24,170,748 shares. The stock had previously closed at $98.34.

Wall Street Analysts Forecast Growth

Several research firms have recently issued reports on NOW. Citizens Jmp reaffirmed a "market outperform" rating and set a $157.00 price objective on shares of ServiceNow in a research report on Tuesday, May 5th. Cantor Fitzgerald set a $130.00 price target on ServiceNow in a report on Monday, June 15th. TD Cowen reissued a "buy" rating and set a $140.00 price objective on shares of ServiceNow in a report on Thursday, April 23rd. Truist Financial decreased their price objective on shares of ServiceNow from $125.00 to $120.00 and set a "buy" rating for the company in a research note on Thursday, April 23rd. Finally, KeyCorp set a $85.00 price objective on ServiceNow and gave the company an "underweight" rating in a research note on Thursday, April 23rd. One equities research analyst has rated the stock with a Strong Buy rating, thirty-five have assigned a Buy rating, five have issued a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, ServiceNow presently has an average rating of "Moderate Buy" and a consensus price target of $142.17.

ServiceNow Stock Up 1.6%

The company has a market capitalization of $102.99 billion, a PE ratio of 59.53, a P/E/G ratio of 1.64 and a beta of 0.94. The company has a current ratio of 0.84, a quick ratio of 0.84 and a debt-to-equity ratio of 0.13. The firm has a 50 day simple moving average of $100.10 and a two-hundred day simple moving average of $114.88.

ServiceNow (NYSE:NOW - Get Free Report) last posted its quarterly earnings data on Wednesday, April 22nd. The information technology services provider reported $0.97 earnings per share for the quarter, meeting analysts' consensus estimates of $0.97. ServiceNow had a net margin of 12.59% and a return on equity of 18.16%. The firm had revenue of $3.77 billion for the quarter, compared to analyst estimates of $3.75 billion. During the same period last year, the firm posted $0.81 EPS. ServiceNow's quarterly revenue was up 22.1% on a year-over-year basis. Research analysts expect that ServiceNow, Inc. will post 2.34 EPS for the current year.

Insiders Place Their Bets

In other ServiceNow news, Director Paul Edward Chamberlain sold 1,500 shares of the business's stock in a transaction 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 approximately $3,919,243.90. The trade was a 3.23% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Paul Fipps sold 1,048 shares of the company's stock in a transaction on Monday, May 18th. The stock was sold at an average price of $98.51, for a total transaction of $103,238.48. Following the transaction, the insider directly owned 12,072 shares in the company, valued at approximately $1,189,212.72. This trade represents a 7.99% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last quarter, insiders sold 28,071 shares of company stock valued at $2,529,956. Corporate insiders own 0.34% of the company's stock.

Institutional Trading of ServiceNow

A number of institutional investors have recently added to or reduced their stakes in the stock. Brighton Jones LLC raised its holdings in ServiceNow by 1.1% during the fourth quarter. Brighton Jones LLC now owns 2,753 shares of the information technology services provider's stock worth $2,919,000 after purchasing an additional 30 shares during the last quarter. Sivia Capital Partners LLC boosted its position in shares of ServiceNow by 4.2% in the 2nd quarter. Sivia Capital Partners LLC now owns 837 shares of the information technology services provider's stock worth $861,000 after buying an additional 34 shares in the last quarter. United Bank grew its stake in ServiceNow by 15.5% in the 2nd quarter. United Bank now owns 1,519 shares of the information technology services provider's stock valued at $1,562,000 after acquiring an additional 204 shares during the last quarter. Riggs Asset Managment Co. Inc. increased its holdings in ServiceNow by 2.2% during the 2nd quarter. Riggs Asset Managment Co. Inc. now owns 1,922 shares of the information technology services provider's stock valued at $1,976,000 after acquiring an additional 42 shares in the last quarter. Finally, Nebula Research & Development LLC raised its position in ServiceNow by 205.1% during the second quarter. Nebula Research & Development LLC now owns 906 shares of the information technology services provider's stock worth $931,000 after acquiring an additional 609 shares during the last quarter. Hedge funds and other institutional investors own 87.18% of the company's stock.

About ServiceNow

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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