ServiceNow (NYSE:NOW) Trading Up 2.7% - Time to Buy?

Key Points

• ServiceNow shares rose 2.7% to $114.24 in mid-day trading, with volume near its average and a market capitalization of approximately $118.1 billion.
• Analysts maintain a generally positive outlook, with a consensus “Moderate Buy” rating and an average price target of $143.39, despite several recent target-price reductions.
• The company exceeded quarterly expectations, reporting adjusted EPS of $0.90 versus $0.86 expected and revenue of $3.99 billion, up 24% year over year; however, insiders sold roughly $1.73 million in stock during the latest quarter.

ServiceNow, Inc. (NYSE:NOW - Get Free Report) shot up 2.7% during mid-day trading on Monday . The stock traded as high as $119.64 and last traded at $114.2390. 24,221,925 shares traded hands during mid-day trading, an increase of 0% from the average daily volume of 24,191,105 shares. The stock had previously closed at $111.23.

Analyst Upgrades and Downgrades

A number of equities research analysts recently weighed in on the stock. FBN Securities dropped their price target on shares of ServiceNow from $160.00 to $120.00 in a research note on Thursday, April 23rd. Benchmark reaffirmed a "buy" rating on shares of ServiceNow in a research note on Friday, July 17th. Barclays reaffirmed an "overweight" rating and set a $134.00 target price (up from $132.00) on shares of ServiceNow in a report on Tuesday, May 5th. Raymond James Financial dropped their target price on shares of ServiceNow from $160.00 to $130.00 and set an "outperform" rating for the company in a research report on Thursday, April 23rd. Finally, Mizuho cut their price target on ServiceNow from $150.00 to $140.00 and set an "outperform" rating on the stock in a research note on Thursday, April 23rd. One equities research analyst has rated the stock with a Strong Buy rating, thirty-six have assigned a Buy rating, two have assigned a Hold rating and three have issued a Sell rating to the company. Based on data from MarketBeat.com, ServiceNow presently has an average rating of "Moderate Buy" and a consensus target price of $143.39.

ServiceNow Stock Up 2.7%

The firm's 50 day moving average is $105.64 and its two-hundred day moving average is $106.18. The firm has a market cap of $118.12 billion, a P/E ratio of 71.40, a price-to-earnings-growth ratio of 1.96 and a beta of 0.94. The company has a current ratio of 0.70, a quick ratio of 0.70 and a debt-to-equity ratio of 0.43.

ServiceNow (NYSE:NOW - Get Free Report) last issued its quarterly earnings data on Wednesday, July 22nd. The information technology services provider reported $0.90 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.86 by $0.04. ServiceNow had a net margin of 11.34% and a return on equity of 16.45%. The firm had revenue of $3.99 billion during the quarter, compared to analysts' expectations of $3.93 billion. During the same quarter in the previous year, the company earned $0.81 earnings per share. The business's revenue for the quarter was up 24.0% on a year-over-year basis. As a group, research analysts anticipate that ServiceNow, Inc. will post 2.24 EPS for the current fiscal year.

Insider Activity

In related news, Director Paul Edward Chamberlain sold 1,500 shares of the firm's stock in a transaction on Thursday, May 14th. The stock was sold at an average price of $87.23, for a total transaction of $130,845.00. Following the sale, the director owned 44,930 shares of the company's stock, valued at approximately $3,919,243.90. This trade represents a 3.23% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Anita M. Sands sold 16,445 shares of ServiceNow stock in a transaction dated Thursday, May 14th. The stock was sold at an average price of $90.14, for a total value of $1,482,352.30. Following the transaction, the director owned 30,090 shares in the company, valued at approximately $2,712,312.60. This represents a 35.34% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 19,144 shares of company stock valued at $1,730,097 in the last quarter. Company insiders own 0.34% of the company's stock.

Institutional Investors Weigh In On ServiceNow

A number of hedge funds have recently modified their holdings of NOW. Millstone Evans Group LLC increased its stake in ServiceNow by 400.0% during the 4th quarter. Millstone Evans Group LLC now owns 165 shares of the information technology services provider's stock worth $25,000 after purchasing an additional 132 shares in the last quarter. CBIZ Investment Advisory Services LLC lifted its stake in ServiceNow by 540.0% in the fourth quarter. CBIZ Investment Advisory Services LLC now owns 160 shares of the information technology services provider's stock valued at $25,000 after buying an additional 135 shares in the last quarter. Blueline Advisors LLC acquired a new position in shares of ServiceNow in the fourth quarter valued at approximately $25,000. Measured Wealth Private Client Group LLC boosted its holdings in shares of ServiceNow by 560.0% in the fourth quarter. Measured Wealth Private Client Group LLC now owns 165 shares of the information technology services provider's stock valued at $25,000 after buying an additional 140 shares during the period. Finally, Wealth Watch Advisors INC increased its position in shares of ServiceNow by 432.3% during the fourth quarter. Wealth Watch Advisors INC now owns 165 shares of the information technology services provider's stock worth $25,000 after acquiring an additional 134 shares in the last quarter. 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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