ServiceNow (NYSE:NOW) Trading Down 2.1% - Should You Sell?

Key Points

• ServiceNow shares fell 2.1% in Tuesday trading, last changing hands around $99.99 after dipping as low as $98.72, with volume slightly above average.
• Analysts remain broadly positive on the stock, with several firms reiterating buy/outperform ratings and a consensus price target of $141.85, though Truist trimmed its target to $120.
• The company posted solid recent results, with Q1 revenue up 22.1% year over year to $3.77 billion and EPS matching expectations at $0.97, while insiders have also been selling shares in recent months.

Shares of ServiceNow, Inc. (NYSE:NOW - Get Free Report) dropped 2.1% during mid-day trading on Tuesday . The stock traded as low as $98.72 and last traded at $99.99. Approximately 23,144,634 shares changed hands during mid-day trading, an increase of 3% from the average daily volume of 22,456,352 shares. The stock had previously closed at $102.13.

Analysts Set New Price Targets

Several research firms recently commented on NOW. TD Cowen reaffirmed a "buy" rating and set a $140.00 target price on shares of ServiceNow in a report on Thursday, April 23rd. UBS Group restated an "outperform" rating on shares of ServiceNow in a research report on Tuesday. Royal Bank Of Canada reaffirmed an "outperform" rating and set a $121.00 target price on shares of ServiceNow in a report on Tuesday, May 5th. Barclays reiterated an "overweight" rating and issued a $134.00 target price (up from $132.00) on shares of ServiceNow in a research note on Tuesday, May 5th. Finally, Truist Financial lowered their price target on shares of ServiceNow from $125.00 to $120.00 and set a "buy" rating on the stock in a report on Thursday, April 23rd. Two equities research analysts have rated the stock with a Strong Buy rating, thirty-five have given a Buy rating, five have issued a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat, the company has a consensus rating of "Moderate Buy" and an average target price of $141.85.

ServiceNow Trading Down 2.1%

The company has a fifty day moving average of $98.53 and a 200-day moving average of $125.20. 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 company has a market capitalization of $103.09 billion, a price-to-earnings ratio of 59.59, a PEG ratio of 1.85 and a beta of 0.82.

ServiceNow (NYSE:NOW - Get Free Report) last released its earnings results on Wednesday, April 22nd. The information technology services provider reported $0.97 earnings per share (EPS) for the quarter, hitting analysts' consensus estimates of $0.97. ServiceNow had a net margin of 12.59% and a return on equity of 18.16%. The business had revenue of $3.77 billion during the quarter, compared to analyst estimates of $3.75 billion. During the same quarter in the prior year, the firm earned $0.81 earnings per share. The company's revenue for the quarter was up 22.1% compared to the same quarter last year. As a group, equities research analysts anticipate that ServiceNow, Inc. will post 2.35 earnings per share for the current fiscal year.

Insider Activity at ServiceNow

In other ServiceNow news, insider Paul Fipps sold 1,048 shares of ServiceNow stock in a transaction dated Monday, May 18th. The stock was sold at an average price of $98.51, for a total value of $103,238.48. Following the completion of the transaction, the insider directly owned 12,072 shares of the company's stock, valued at $1,189,212.72. The trade was a 7.99% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. 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. Also, Director Anita M. Sands sold 16,445 shares of the business's stock in a transaction dated Thursday, May 14th. The stock was sold at an average price of $90.14, for a total transaction of $1,482,352.30. Following the sale, the director owned 30,090 shares in the company, valued at $2,712,312.60. This trade represents a 35.34% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 28,071 shares of company stock valued at $2,529,956 over the last 90 days. 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. Brighton Jones LLC grew its position in shares of 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 buying an additional 30 shares in 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 valued at $861,000 after purchasing an additional 34 shares during the period. United Bank grew its position in shares of ServiceNow by 15.5% during the second quarter. United Bank now owns 1,519 shares of the information technology services provider's stock worth $1,562,000 after acquiring an additional 204 shares during the last quarter. Riggs Asset Managment Co. Inc. grew its position 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 worth $1,976,000 after purchasing an additional 42 shares during the last quarter. Finally, Nebula Research & Development LLC boosted its stake in shares of 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 buying an additional 609 shares during the period. Institutional investors and hedge funds own 87.18% of the company's stock.

ServiceNow Company Profile

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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