ServiceNow (NYSE:NOW) Stock Price Up 1.3% - Here's Why

ServiceNow, Inc. (NYSE:NOW - Get Free Report) shares traded up 1.3% during mid-day trading on Tuesday . The stock traded as high as $1,036.00 and last traded at $1,028.96. 387,756 shares changed hands during trading, a decline of 74% from the average session volume of 1,511,631 shares. The stock had previously closed at $1,015.60.

Wall Street Analyst Weigh In

Several analysts recently issued reports on the company. Canaccord Genuity Group dropped their target price on ServiceNow from $1,275.00 to $900.00 and set a "buy" rating on the stock in a report on Tuesday, April 22nd. Royal Bank of Canada upped their target price on ServiceNow from $1,060.00 to $1,100.00 and gave the stock an "outperform" rating in a report on Tuesday, May 6th. Mizuho dropped their target price on ServiceNow from $1,210.00 to $1,100.00 and set an "outperform" rating on the stock in a report on Tuesday, March 11th. Needham & Company LLC reiterated a "buy" rating and set a $1,050.00 target price on shares of ServiceNow in a report on Tuesday, May 6th. Finally, Citigroup upped their target price on ServiceNow from $1,128.00 to $1,160.00 and gave the stock a "buy" rating in a report on Wednesday, May 7th. One equities research analyst has rated the stock with a sell rating, three have assigned a hold rating, twenty-nine have issued a buy rating and one has given a strong buy rating to the stock. Based on data from MarketBeat, ServiceNow presently has a consensus rating of "Moderate Buy" and an average price target of $1,062.50.

ServiceNow Stock Performance

The company has a debt-to-equity ratio of 0.15, a quick ratio of 1.10 and a current ratio of 1.10. The stock has a fifty day simple moving average of $853.85 and a two-hundred day simple moving average of $971.90. The stock has a market capitalization of $214.16 billion, a price-to-earnings ratio of 151.44, a P/E/G ratio of 4.51 and a beta of 0.97.

ServiceNow (NYSE:NOW - Get Free Report) last issued its earnings results on Wednesday, April 23rd. The information technology services provider reported $4.04 EPS for the quarter, beating the consensus estimate of $3.78 by $0.26. The company had revenue of $3.09 billion during the quarter, compared to the consensus estimate of $3.09 billion. ServiceNow had a return on equity of 17.11% and a net margin of 12.97%. The firm's revenue for the quarter was up 18.6% compared to the same quarter last year. During the same period last year, the business posted $3.41 EPS. Analysts forecast that ServiceNow, Inc. will post 8.93 earnings per share for the current fiscal year.

ServiceNow declared that its board has approved a stock buyback program on Wednesday, January 29th that permits the company to buyback $3.00 billion in outstanding shares. This buyback authorization permits the information technology services provider to reacquire up to 1.3% of its shares through open market purchases. Shares buyback programs are often an indication that the company's leadership believes its shares are undervalued.

Insiders Place Their Bets

In related news, insider Jacqueline P. Canney sold 66 shares of ServiceNow stock in a transaction that occurred on Tuesday, May 13th. The shares were sold at an average price of $1,023.00, for a total value of $67,518.00. Following the completion of the transaction, the insider now directly owns 3,027 shares in the company, valued at approximately $3,096,621. The trade was a 2.13% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, General Counsel Russell S. Elmer sold 1,023 shares of the business's stock in a transaction on Tuesday, February 18th. The shares were sold at an average price of $988.00, for a total transaction of $1,010,724.00. Following the transaction, the general counsel now owns 4,332 shares of the company's stock, valued at $4,280,016. This trade represents a 19.10% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold a total of 15,056 shares of company stock valued at $14,421,814 in the last 90 days. 0.38% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Stony Point Capital LLC lifted its stake in ServiceNow by 100.7% in the first quarter. Stony Point Capital LLC now owns 14,679 shares of the information technology services provider's stock worth $11,687,000 after purchasing an additional 7,366 shares during the last quarter. Vident Advisory LLC lifted its stake in ServiceNow by 45.9% in the first quarter. Vident Advisory LLC now owns 20,837 shares of the information technology services provider's stock worth $16,589,000 after purchasing an additional 6,554 shares during the last quarter. The Manufacturers Life Insurance Company lifted its stake in ServiceNow by 20.5% in the first quarter. The Manufacturers Life Insurance Company now owns 222,593 shares of the information technology services provider's stock worth $177,217,000 after purchasing an additional 37,848 shares during the last quarter. Magnetar Financial LLC bought a new position in shares of ServiceNow during the first quarter valued at about $9,385,000. Finally, Gordian Capital Singapore Pte Ltd raised its stake in shares of ServiceNow by 54.4% during the first quarter. Gordian Capital Singapore Pte Ltd now owns 698 shares of the information technology services provider's stock valued at $556,000 after acquiring an additional 246 shares during the last quarter. 87.18% of the stock is currently owned by hedge funds and other institutional investors.

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.