ServiceNow (NYSE:NOW) Trading Up 1.5% - Still a Buy?

Key Points

• ServiceNow shares rose 1.5% in midday trading, briefly touching $110.64 before last trading at $107.93, on volume below its daily average.
• Analysts remain broadly positive: the stock carries a Moderate Buy consensus with an average price target of $141.68, though several firms recently cut or adjusted targets.
• ServiceNow’s latest earnings showed 22.1% year-over-year revenue growth to $3.77 billion, while EPS of $0.97 met expectations; insiders have also been selling shares in recent months.

ServiceNow, Inc. (NYSE:NOW - Get Free Report)'s stock price shot up 1.5% during mid-day trading on Monday . The stock traded as high as $110.64 and last traded at $107.93. Approximately 16,165,716 shares changed hands during mid-day trading, a decline of 33% from the average session volume of 24,091,781 shares. The stock had previously closed at $106.32.

Analysts Set New Price Targets

A number of research firms recently weighed in on NOW. Citizens Jmp restated a "market outperform" rating and issued a $157.00 price target on shares of ServiceNow in a research note on Tuesday, May 5th. JPMorgan Chase & Co. lowered their price target on shares of ServiceNow from $195.00 to $145.00 and set an "overweight" rating on the stock in a research report on Thursday, April 23rd. BNP Paribas Exane upgraded ServiceNow from a "neutral" rating to an "outperform" rating and set a $140.00 price objective on the stock in a research note on Monday, March 16th. Capital One Financial upped their price objective on shares of ServiceNow from $105.00 to $120.00 and gave the stock an "overweight" rating in a research report on Tuesday, May 5th. Finally, Weiss Ratings downgraded shares of ServiceNow from a "hold (c)" rating to a "hold (c-)" rating in a research report on Tuesday, April 21st. One research analyst has rated the stock with a Strong Buy rating, thirty-six have given a Buy rating, four have given a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average price target of $141.68.

ServiceNow Trading Up 1.5%

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 firm's 50-day moving average price is $100.53 and its 200 day moving average price is $112.60. The company has a market cap of $111.28 billion, a price-to-earnings ratio of 64.32, a P/E/G ratio of 1.77 and a beta of 0.96.

ServiceNow (NYSE:NOW - Get Free Report) last posted its earnings results on Wednesday, April 22nd. The information technology services provider reported $0.97 earnings per share for the quarter, meeting analysts' consensus estimates of $0.97. The company had revenue of $3.77 billion for the quarter, compared to analyst estimates of $3.75 billion. ServiceNow had a return on equity of 18.16% and a net margin of 12.59%.The company's revenue for the quarter was up 22.1% on a year-over-year basis. During the same quarter last year, the company earned $0.81 earnings per share. As a group, equities analysts expect that ServiceNow, Inc. will post 2.34 EPS for the current year.

Insider Transactions at ServiceNow

In other ServiceNow news, insider Jacqueline P. Canney sold 8,927 shares of the business's stock in a transaction on Friday, April 24th. The shares were sold at an average price of $89.60, for a total value of $799,859.20. Following the completion of the sale, the insider directly owned 29,531 shares of the company's stock, valued at $2,645,977.60. The trade was a 23.21% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. Also, insider Paul Fipps sold 1,048 shares of the business's stock in a transaction dated Monday, May 18th. The shares were sold at an average price of $98.51, for a total transaction of $103,238.48. Following the completion of the transaction, the insider owned 12,072 shares in the company, valued at $1,189,212.72. The trade was a 7.99% decrease in their position. The SEC filing for this sale provides additional information. 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. Insiders have sold a total of 28,071 shares of company stock valued at $2,529,956 over the last 90 days. Company insiders own 0.34% of the company's stock.

Hedge Funds Weigh In On ServiceNow

A number of institutional investors and hedge funds have recently modified their holdings of NOW. Florida Financial Advisors LLC lifted its holdings in ServiceNow by 5.4% during the second quarter. Florida Financial Advisors LLC now owns 273 shares of the information technology services provider's stock valued at $280,000 after purchasing an additional 14 shares in the last quarter. First Affirmative Financial Network lifted its stake in shares of ServiceNow by 1.7% during the 3rd quarter. First Affirmative Financial Network now owns 892 shares of the information technology services provider's stock valued at $821,000 after buying an additional 15 shares in the last quarter. Nicolet Advisory Services LLC lifted its position in shares of ServiceNow by 1.1% in the third quarter. Nicolet Advisory Services LLC now owns 1,462 shares of the information technology services provider's stock valued at $1,322,000 after acquiring an additional 16 shares in the last quarter. Perennial Investment Advisors LLC lifted its holdings in ServiceNow by 6.7% in the 3rd quarter. Perennial Investment Advisors LLC now owns 270 shares of the information technology services provider's stock worth $248,000 after purchasing an additional 17 shares in the last quarter. Finally, Opes Wealth Management LLC grew its position in shares of ServiceNow by 3.5% during the third quarter. Opes Wealth Management LLC now owns 507 shares of the information technology services provider's stock valued at $467,000 after purchasing an additional 17 shares in the last quarter. 87.18% of the stock is currently owned by hedge funds and other institutional investors.

About ServiceNow

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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