ServiceNow (NYSE:NOW) Trading Up 2% - Here's Why

Key Points

• ServiceNow's stock price rose 2% to $881.67 after trading up to $885.00, despite a significant decline in trading volume compared to averages.
• Analysts have increased their price targets for ServiceNow, with notable raises from Raymond James to $1,100 and DA Davidson to $1,250, indicating a generally positive outlook with an average price target of $1,115.20.
• In its latest earnings report, ServiceNow posted a EPS of $4.09, exceeding estimates by $0.52, with revenue of $3.22 billion, marking a year-over-year growth of 22.4%.

ServiceNow, Inc. (NYSE:NOW - Get Free Report) shares shot up 2% on Wednesday . The stock traded as high as $885.00 and last traded at $881.67. 457,923 shares traded hands during mid-day trading, a decline of 73% from the average session volume of 1,705,543 shares. The stock had previously closed at $864.66.

Analyst Ratings Changes

Several research firms have weighed in on NOW. Raymond James Financial raised their price objective on shares of ServiceNow from $1,000.00 to $1,100.00 and gave the company an "outperform" rating in a research report on Thursday, July 24th. Erste Group Bank restated a "hold" rating on shares of ServiceNow in a research report on Wednesday, July 23rd. Cantor Fitzgerald restated an "overweight" rating and issued a $1,200.00 price objective on shares of ServiceNow in a research report on Thursday, July 24th. Piper Sandler raised their price objective on shares of ServiceNow from $1,120.00 to $1,150.00 and gave the company an "overweight" rating in a research report on Thursday, July 24th. Finally, DA Davidson raised their price objective on shares of ServiceNow from $1,150.00 to $1,250.00 and gave the company a "buy" rating in a research report on Thursday, July 24th. One research analyst has rated the stock with a Strong Buy rating, twenty-nine have issued a Buy rating, three have issued a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average price target of $1,115.20.

ServiceNow Stock Up 2.3%

The firm's 50 day moving average is $949.76 and its two-hundred day moving average is $927.07. The firm has a market cap of $184.04 billion, a P/E ratio of 111.41, a price-to-earnings-growth ratio of 3.97 and a beta of 0.93. The company has a current ratio of 1.09, a quick ratio of 1.09 and a debt-to-equity ratio of 0.14.

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, topping the consensus estimate of $3.57 by $0.52. ServiceNow had a net margin of 13.78% and a return on equity of 18.04%. The business had revenue of $3.22 billion for the quarter, compared to analyst estimates of $3.12 billion. During the same quarter last year, the firm earned $3.13 EPS. ServiceNow's quarterly revenue was up 22.4% compared to the same quarter last year. As a group, research analysts anticipate that ServiceNow, Inc. will post 8.93 EPS for the current fiscal year.

Insider Transactions at ServiceNow

In other ServiceNow news, CEO William R. Mcdermott sold 2,050 shares of ServiceNow stock in a transaction that occurred on Friday, May 30th. The shares were sold at an average price of $1,012.01, for a total value of $2,074,620.50. Following the transaction, the chief executive officer owned 6,614 shares of the company's stock, valued at approximately $6,693,434.14. The trade was a 23.66% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, CFO Gina Mastantuono sold 1,762 shares of ServiceNow stock in a transaction that occurred on Monday, August 18th. The shares were sold at an average price of $866.45, for a total transaction of $1,526,684.90. Following the completion of the sale, the chief financial officer owned 12,228 shares in the company, valued at $10,594,950.60. This trade represents a 12.59% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 15,668 shares of company stock valued at $14,373,737. 0.38% of the stock is currently owned by insiders.

Institutional Trading of ServiceNow

A number of hedge funds and other institutional investors have recently made changes to their positions in the business. Haverford Trust Co raised its holdings in shares of 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 raised its position in ServiceNow by 0.5% during the first quarter. Ascent Group LLC now owns 2,045 shares of the information technology services provider's stock worth $1,628,000 after acquiring an additional 10 shares in the last quarter. Edgemoor Investment Advisors Inc. lifted its stake 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 acquiring an additional 11 shares during the last quarter. Integrated Investment Consultants LLC lifted its stake 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 acquiring an additional 11 shares during the last quarter. Finally, one8zero8 LLC lifted its stake 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 acquiring an additional 11 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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