ServiceNow (NYSE:NOW) Trading Down 1.8% - Time to Sell?

Key Points

• ServiceNow's stock price fell by 1.8% during mid-day trading on Friday, closing at $911.82, with trading volume declining by 75% compared to its average daily volume.
• Analysts have set price targets for ServiceNow ranging from $1,210.00 to $1,234.00, with the majority rating the stock as a "Buy" or "Overweight."
• The company reported a strong quarterly earnings result with $4.09 earnings per share, exceeding estimates and showing a 22.4% increase in revenue year-over-year.

ServiceNow, Inc. (NYSE:NOW - Get Free Report)'s stock price was down 1.8% during mid-day trading on Friday . The company traded as low as $913.65 and last traded at $911.82. Approximately 422,593 shares were traded during trading, a decline of 75% from the average daily volume of 1,710,100 shares. The stock had previously closed at $928.60.

Wall Street Analyst Weigh In

A number of analysts have recently issued reports on NOW shares. Barclays set a $1,210.00 target price on ServiceNow in a report on Thursday, July 24th. Piper Sandler upped their price target on ServiceNow from $1,120.00 to $1,150.00 and gave the stock an "overweight" rating in a report on Thursday, July 24th. Citigroup upped their price target on ServiceNow from $1,160.00 to $1,234.00 and gave the stock a "buy" rating in a report on Thursday, July 24th. Wells Fargo & Company increased their target price on ServiceNow from $1,150.00 to $1,225.00 and gave the company an "overweight" rating in a research note on Thursday, July 24th. Finally, Erste Group Bank reiterated a "hold" rating on shares of ServiceNow in a research note on Wednesday, July 23rd. One equities research analyst has rated the stock with a Strong Buy rating, twenty-nine have assigned a Buy rating, three have issued a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, ServiceNow currently has an average rating of "Moderate Buy" and a consensus price target of $1,115.20.

ServiceNow Price Performance

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 company has a 50-day simple moving average of $946.91 and a two-hundred day simple moving average of $926.16. The stock has a market capitalization of $189.98 billion, a price-to-earnings ratio of 115.04, a price-to-earnings-growth ratio of 4.01 and a beta of 0.93.

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

Insider Buying and Selling

In other news, CEO William R. Mcdermott sold 1,585 shares of the stock in a transaction on Tuesday, August 19th. The stock was sold at an average price of $900.00, for a total value of $1,426,500.00. Following the completion of the transaction, the chief executive officer owned 12,439 shares of the company's stock, valued at approximately $11,195,100. This represents a 11.30% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this link. Also, insider Jacqueline P. Canney sold 1,562 shares of the stock in a transaction on Monday, August 18th. The stock was sold at an average price of $866.45, for a total value of $1,353,394.90. Following the completion of the transaction, the insider directly owned 3,027 shares of the company's stock, valued at approximately $2,622,744.15. The trade was a 34.04% decrease in their position. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 12,302 shares of company stock valued at $10,956,796. Company insiders own 0.38% of the company's stock.

Institutional Investors Weigh In On ServiceNow

A number of hedge funds and other institutional investors have recently made changes to their positions in NOW. Haverford Trust Co increased its holdings in ServiceNow by 0.9% in the first quarter. Haverford Trust Co now owns 1,176 shares of the information technology services provider's stock valued at $936,000 after purchasing an additional 10 shares during the last quarter. Ascent Group LLC increased its holdings in ServiceNow by 0.5% in the first quarter. Ascent Group LLC now owns 2,045 shares of the information technology services provider's stock valued at $1,628,000 after purchasing an additional 10 shares during the last quarter. Edgemoor Investment Advisors Inc. increased its holdings in ServiceNow by 2.5% in the first quarter. Edgemoor Investment Advisors Inc. now owns 459 shares of the information technology services provider's stock valued at $366,000 after purchasing an additional 11 shares during the last quarter. Integrated Investment Consultants LLC increased its holdings in ServiceNow by 2.5% in the first quarter. Integrated Investment Consultants LLC now owns 450 shares of the information technology services provider's stock valued at $358,000 after purchasing an additional 11 shares during the last quarter. Finally, one8zero8 LLC increased its holdings in ServiceNow by 3.2% in the first quarter. one8zero8 LLC now owns 356 shares of the information technology services provider's stock valued at $283,000 after purchasing an additional 11 shares during the last quarter. 87.18% of the stock is owned by hedge funds and other institutional investors.

About ServiceNow

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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