ServiceNow (NYSE:NOW) Trading Down 1.1% - Should You Sell?

Key Points

• ServiceNow's stock price declined by 1.1% to $880.49, with trading volume significantly lower than average, indicating potential volatility in investor interest.
• Analysts maintain a consensus rating of "Moderate Buy" for ServiceNow, with a target price of $1,115.20, suggesting optimism about the company's future performance.
• The company's recent earnings report showed a 22.4% year-over-year revenue increase, reporting $3.22 billion in revenue and an EPS of $4.09, exceeding analyst expectations.

ServiceNow, Inc. (NYSE:NOW - Get Free Report)'s share price traded down 1.1% on Thursday . The stock traded as low as $873.07 and last traded at $880.49. 281,915 shares were traded during trading, a decline of 84% from the average session volume of 1,710,929 shares. The stock had previously closed at $890.25.

Analyst Ratings Changes

Several analysts have weighed in on the stock. JMP Securities reaffirmed a "market outperform" rating and set a $1,300.00 price objective on shares of ServiceNow in a research note on Monday, August 4th. Mizuho upped their price objective on shares of ServiceNow from $1,050.00 to $1,100.00 and gave the stock an "outperform" rating in a research note on Thursday, June 12th. The Goldman Sachs Group reiterated a "buy" rating on shares of ServiceNow in a research report on Thursday, April 24th. Raymond James Financial upped their target price on shares of ServiceNow from $1,000.00 to $1,100.00 and gave the stock an "outperform" rating in a research report on Thursday, July 24th. Finally, Wall Street Zen upgraded shares of ServiceNow from a "hold" rating to a "buy" rating in a research report on Tuesday, July 29th. One investment analyst has rated the stock with a Strong Buy rating, twenty-nine have assigned a Buy rating, three have assigned a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and a consensus price target of $1,115.20.

ServiceNow Trading Down 1.1%

The company's fifty day simple moving average is $959.60 and its two-hundred day simple moving average is $931.56. 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 company has a market capitalization of $183.09 billion, a price-to-earnings ratio of 110.81, a price-to-earnings-growth ratio of 4.00 and a beta of 0.93.

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

Insider Transactions at ServiceNow

In other ServiceNow news, CFO Gina Mastantuono sold 1,762 shares of the stock in a transaction on 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 completion of the sale, the chief financial officer owned 12,228 shares in the company, valued at $10,594,950.60. This trade represents a 12.59% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, Director Paul Edward Chamberlain sold 300 shares of the stock in a transaction on Thursday, August 14th. The shares were sold at an average price of $860.00, for a total transaction of $258,000.00. Following the completion of the sale, the director owned 9,886 shares of the company's stock, valued at approximately $8,501,960. This represents a 2.95% decrease in their position. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 11,361 shares of company stock valued at $10,579,976. 0.38% of the stock is owned by company insiders.

Institutional Trading of ServiceNow

A number of hedge funds have recently modified their holdings of the stock. Bogart Wealth LLC raised its stake in ServiceNow by 113.3% in the 1st quarter. Bogart Wealth LLC now owns 32 shares of the information technology services provider's stock worth $25,000 after purchasing an additional 17 shares in the last quarter. Kilter Group LLC acquired a new stake in ServiceNow in the 2nd quarter worth about $25,000. Graybill Wealth Management LTD. acquired a new stake in ServiceNow in the 1st quarter worth about $26,000. Quarry LP acquired a new stake in ServiceNow in the 4th quarter worth about $27,000. Finally, WASHINGTON TRUST Co raised its stake in ServiceNow by 620.0% in the 1st quarter. WASHINGTON TRUST Co now owns 36 shares of the information technology services provider's stock worth $29,000 after purchasing an additional 31 shares in the last quarter. Institutional investors and hedge funds own 87.18% of the company's stock.

ServiceNow Company Profile

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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