ServiceNow (NYSE:NOW) Stock Price Up 2.2% - Here's Why

Key Points

• ServiceNow shares rose 2.2% in mid-day trading, reaching as high as $105.40 on volume that was about 22% above its average daily level.
• Recent analyst sentiment remains constructive overall, with a consensus “Moderate Buy” and an average target price of $141.85, even though several firms trimmed their price targets.
• The company’s latest earnings met expectations, with EPS of $0.97 and revenue of $3.77 billion, while revenue grew 22.1% year over year.

ServiceNow, Inc. (NYSE:NOW - Get Free Report) shares rose 2.2% during mid-day trading on Wednesday . The company traded as high as $105.40 and last traded at $102.1450. Approximately 27,513,593 shares traded hands during trading, an increase of 22% from the average daily volume of 22,499,180 shares. The stock had previously closed at $99.92.

Analyst Upgrades and Downgrades

NOW has been the topic of a number of recent research reports. JPMorgan Chase & Co. dropped their price objective on ServiceNow from $195.00 to $145.00 and set an "overweight" rating on the stock in a report on Thursday, April 23rd. Royal Bank Of Canada restated an "outperform" rating and issued a $121.00 target price on shares of ServiceNow in a research note on Tuesday, May 5th. Citigroup upped their target price on ServiceNow from $154.00 to $158.00 and gave the stock a "buy" rating in a research note on Thursday, April 30th. BTIG Research restated a "buy" rating and issued a $150.00 target price on shares of ServiceNow in a research note on Monday, May 4th. Finally, BMO Capital Markets decreased their target price on ServiceNow from $120.00 to $115.00 and set an "outperform" rating on the stock in a research note on Thursday, April 23rd. Two analysts have rated the stock with a Strong Buy rating, thirty-five have issued a Buy rating, five have given a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and a consensus target price of $141.85.

ServiceNow Price Performance

The company has a debt-to-equity ratio of 0.13, a quick ratio of 0.84 and a current ratio of 0.84. The firm has a market capitalization of $105.31 billion, a P/E ratio of 60.87, a price-to-earnings-growth ratio of 1.85 and a beta of 0.82. The business has a 50 day simple moving average of $98.26 and a two-hundred day simple moving average of $124.67.

ServiceNow (NYSE:NOW - Get Free Report) last announced its quarterly earnings data on Wednesday, April 22nd. The information technology services provider reported $0.97 EPS for the quarter, meeting the consensus estimate of $0.97. The firm had revenue of $3.77 billion for the quarter, compared to analyst estimates of $3.75 billion. ServiceNow had a return on equity of 18.16% and a net margin of 12.59%.The company's revenue was up 22.1% on a year-over-year basis. During the same period in the prior year, the company earned $0.81 EPS. On average, sell-side analysts expect that ServiceNow, Inc. will post 2.35 EPS for the current fiscal year.

Insider Transactions at ServiceNow

In other news, insider Jacqueline P. Canney sold 8,927 shares of the stock in a transaction dated Friday, April 24th. The stock was sold at an average price of $89.60, for a total transaction of $799,859.20. Following the transaction, the insider directly owned 29,531 shares in the company, valued at approximately $2,645,977.60. This represents a 23.21% 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, insider Paul Fipps sold 1,048 shares of the stock in a transaction dated Monday, May 18th. The shares were sold at an average price of $98.51, for a total value of $103,238.48. Following the transaction, the insider owned 12,072 shares in the company, valued at $1,189,212.72. This trade represents a 7.99% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. 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. Insiders have sold a total of 28,071 shares of company stock valued at $2,529,956 over the last 90 days. Company insiders own 0.34% of the company's stock.

Hedge Funds Weigh In On ServiceNow

Several institutional investors have recently modified their holdings of NOW. Meridian Wealth Advisors LLC boosted its holdings in ServiceNow by 2.2% during the 3rd quarter. Meridian Wealth Advisors LLC now owns 552 shares of the information technology services provider's stock valued at $508,000 after acquiring an additional 12 shares during the period. Valley Brook Capital Group Inc. boosted its holdings in ServiceNow by 2.1% during the 3rd quarter. Valley Brook Capital Group Inc. now owns 634 shares of the information technology services provider's stock valued at $583,000 after acquiring an additional 13 shares during the period. Catalyst Financial Partners LLC boosted its holdings in ServiceNow by 1.0% during the 3rd quarter. Catalyst Financial Partners LLC now owns 1,270 shares of the information technology services provider's stock valued at $1,169,000 after acquiring an additional 13 shares during the period. JT Stratford LLC boosted its holdings in ServiceNow by 3.5% during the 3rd quarter. JT Stratford LLC now owns 385 shares of the information technology services provider's stock valued at $354,000 after acquiring an additional 13 shares during the period. Finally, Abbot Financial Management Inc. boosted its holdings in ServiceNow by 2.9% during the 3rd quarter. Abbot Financial Management Inc. now owns 502 shares of the information technology services provider's stock valued at $462,000 after acquiring an additional 14 shares during the period. 87.18% of the stock is currently owned by institutional investors.

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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