ServiceNow (NYSE:NOW) Trading Up 5.8% - Time to Buy?

Key Points

• ServiceNow shares rose 5.8% to $105.18 on Monday, with roughly 6.11 million shares traded, about 67% below the stock's average daily volume.
• Several brokerages have trimmed price targets recently, but the stock's consensus rating remains a Moderate Buy with an average target of $192.61.
• ServiceNow beat quarterly expectations (EPS $0.92 vs. $0.89) and reported revenue of $3.57 billion, up 20.7% year‑over‑year, while trading at a high valuation (market cap ≈ $109.9B; P/E ≈ 63).

ServiceNow, Inc. (NYSE:NOW - Get Free Report) was up 5.8% during trading on Monday . The company traded as high as $105.21 and last traded at $105.1820. Approximately 6,114,291 shares traded hands during trading, a decline of 67% from the average daily volume of 18,707,980 shares. The stock had previously closed at $99.41.

Analysts Set New Price Targets

A number of brokerages recently weighed in on NOW. Jefferies Financial Group reduced their price target on shares of ServiceNow from $230.00 to $175.00 and set a "buy" rating for the company in a research report on Friday, January 23rd. Macquarie Infrastructure lowered their price objective on shares of ServiceNow from $172.00 to $140.00 and set a "neutral" rating on the stock in a research report on Thursday, January 29th. DA Davidson reiterated a "buy" rating and issued a $220.00 target price on shares of ServiceNow in a research note on Thursday, January 29th. Mizuho reduced their target price on shares of ServiceNow from $210.00 to $190.00 and set an "outperform" rating for the company in a research report on Wednesday, January 21st. Finally, Royal Bank Of Canada decreased their price target on shares of ServiceNow from $185.00 to $150.00 and set an "outperform" rating for the company in a research note on Monday, February 9th. Three equities research analysts have rated the stock with a Strong Buy rating, thirty-two have issued a Buy rating, five have issued a Hold rating and two have issued a Sell rating to the stock. According to data from MarketBeat.com, the company has an average rating of "Moderate Buy" and a consensus target price of $192.61.

ServiceNow Stock Performance

The company has a debt-to-equity ratio of 0.12, a current ratio of 1.00 and a quick ratio of 1.00. The firm has a market capitalization of $109.86 billion, a PE ratio of 62.98, a P/E/G ratio of 1.68 and a beta of 0.99. The company's fifty day simple moving average is $112.88 and its 200 day simple moving average is $149.78.

ServiceNow (NYSE:NOW - Get Free Report) last posted its earnings results on Wednesday, January 28th. The information technology services provider reported $0.92 earnings per share for the quarter, topping the consensus estimate of $0.89 by $0.03. The firm had revenue of $3.57 billion during the quarter, compared to the consensus estimate of $3.53 billion. ServiceNow had a net margin of 13.16% and a return on equity of 18.54%. The company's revenue was up 20.7% on a year-over-year basis. During the same quarter last year, the company earned $0.73 earnings per share. As a group, equities research analysts expect that ServiceNow, Inc. will post 8.93 EPS for the current fiscal year.

Insider Buying and Selling at ServiceNow

In other ServiceNow news, Director Paul Edward Chamberlain sold 1,500 shares of the business's stock in a transaction on Thursday, February 12th. The shares were sold at an average price of $101.17, for a total transaction of $151,755.00. Following the sale, the director owned 46,430 shares of the company's stock, valued at $4,697,323.10. The trade was a 3.13% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, insider Kevin Thomas Mcbride sold 1,400 shares of the stock in a transaction on Friday, February 13th. The stock was sold at an average price of $105.71, for a total value of $147,994.00. Following the sale, the insider owned 26,314 shares in the company, valued at approximately $2,781,652.94. This represents a 5.05% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 16,237 shares of company stock valued at $1,697,162 in the last 90 days. 0.34% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in the stock. Brady Martz Wealth Solutions LLC grew its position in ServiceNow by 1.3% in the third quarter. Brady Martz Wealth Solutions LLC now owns 842 shares of the information technology services provider's stock worth $775,000 after buying an additional 11 shares during the last quarter. Magnus Financial Group LLC lifted its position in shares of ServiceNow by 1.9% during the 3rd quarter. Magnus Financial Group LLC now owns 589 shares of the information technology services provider's stock valued at $542,000 after acquiring an additional 11 shares during the last quarter. Avidian Wealth Enterprises LLC boosted its stake in shares of ServiceNow by 2.5% during the 3rd quarter. Avidian Wealth Enterprises LLC now owns 453 shares of the information technology services provider's stock worth $417,000 after acquiring an additional 11 shares in the last quarter. Regatta Capital Group LLC grew its holdings in shares of ServiceNow by 1.9% in the 3rd quarter. Regatta Capital Group LLC now owns 633 shares of the information technology services provider's stock worth $583,000 after acquiring an additional 12 shares during the last quarter. Finally, Traveka Wealth LLC grew its holdings in shares of ServiceNow by 3.8% in the 3rd quarter. Traveka Wealth LLC now owns 330 shares of the information technology services provider's stock worth $304,000 after acquiring an additional 12 shares during the last quarter. Hedge funds and other institutional investors own 87.18% of the company's stock.

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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