ServiceNow (NYSE:NOW) Trading Down 1.5% - Should You Sell?

Key Points

• ServiceNow's stock fell by 1.5% to $903.66, with trading volume significantly lower than average at 288,905 shares.
• Analysts have generally positive outlooks, with target price increases from firms like BMO and Citigroup, raising estimates to as high as $1,300.00 and maintaining an overall rating of "Moderate Buy."
• CEO William R. Mcdermott recently sold 1,585 shares of the company, totaling approximately $1.43 million, reflecting an 11.3% decrease in his holdings.

Shares of ServiceNow, Inc. (NYSE:NOW - Get Free Report) traded down 1.5% on Tuesday . The stock traded as low as $894.64 and last traded at $903.66. 288,905 shares were traded during mid-day trading, a decline of 83% from the average session volume of 1,710,565 shares. The stock had previously closed at $917.46.

Analysts Set New Price Targets

NOW has been the subject of several research reports. BMO Capital Markets raised their target price on ServiceNow from $1,150.00 to $1,160.00 and gave the company an "outperform" rating in a research note on Thursday, July 24th. JMP Securities reaffirmed a "market outperform" rating and set a $1,300.00 target price on shares of ServiceNow in a research note on Monday, August 4th. DA Davidson raised their target price on ServiceNow from $1,150.00 to $1,250.00 and gave the company a "buy" rating in a research note on Thursday, July 24th. Citigroup raised their price objective on ServiceNow from $1,160.00 to $1,234.00 and gave the stock a "buy" rating in a research note on Thursday, July 24th. Finally, UBS Group reduced their price objective on ServiceNow from $1,125.00 to $1,100.00 and set a "buy" rating for the company in a research note on Thursday, July 24th. One analyst has rated the stock with a Strong Buy rating, twenty-nine have issued a Buy rating, three have given a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, ServiceNow presently has an average rating of "Moderate Buy" and an average price target of $1,115.20.

ServiceNow Stock Down 1.3%

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 firm has a 50 day moving average of $944.66 and a 200-day moving average of $924.23. The stock has a market capitalization of $188.39 billion, a P/E ratio of 114.01, a price-to-earnings-growth ratio of 4.14 and a beta of 0.91.

ServiceNow (NYSE:NOW - Get Free Report) last released its quarterly earnings data 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. The company had revenue of $3.22 billion for the quarter, compared to the consensus estimate of $3.12 billion. ServiceNow had a return on equity of 18.04% and a net margin of 13.78%.The company's quarterly revenue was up 22.4% on a year-over-year basis. During the same period in the previous year, the business earned $3.13 earnings per share. On average, equities research analysts expect that ServiceNow, Inc. will post 8.93 earnings per share for the current fiscal year.

Insider Transactions at ServiceNow

In other ServiceNow news, CEO William R. Mcdermott sold 1,585 shares of the company's stock in a transaction on Tuesday, August 19th. The shares were sold at an average price of $900.00, for a total transaction of $1,426,500.00. Following the completion of the sale, the chief executive officer owned 12,439 shares in the company, valued at approximately $11,195,100. The trade was a 11.30% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, insider Jacqueline P. Canney sold 1,562 shares of the company's stock in a transaction on Monday, August 18th. The shares were sold at an average price of $866.45, for a total transaction of $1,353,394.90. Following the sale, 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 disclosure for this sale can be found here. Insiders have sold a total of 12,054 shares of company stock worth $10,706,530 over the last ninety days. 0.38% of the stock is currently owned by insiders.

Hedge Funds Weigh In On ServiceNow

A number of large investors have recently modified their holdings of the business. Vanguard Group Inc. boosted its stake in shares of ServiceNow by 2.0% during 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 buying an additional 398,071 shares during the last quarter. State Street Corp lifted its stake 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 valued at $9,585,426,000 after purchasing an additional 154,307 shares during the last quarter. Geode Capital Management LLC lifted its stake 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 valued at $4,684,445,000 after purchasing an additional 88,057 shares during the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC lifted its stake in ServiceNow by 7.1% in the 1st 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 valued at $2,263,519,000 after purchasing an additional 188,292 shares during the last quarter. Finally, GAMMA Investing LLC lifted its stake in ServiceNow by 87,501.3% in the 1st quarter. GAMMA Investing LLC now owns 2,689,361 shares of the information technology services provider's stock valued at $2,141,108,000 after purchasing an additional 2,686,291 shares during the last quarter. 87.18% of the stock is currently owned by institutional investors and hedge funds.

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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