ServiceNow (NYSE:NOW) Trading Up 6.4% - What's Next?

Key Points

• ServiceNow shares rose 6.4% to about $124.91 in heavy trading, with roughly 25.5 million shares changing hands—6% above average volume.
• Recent quarterly results exceeded expectations: earnings reached $0.90 per share versus $0.86 expected, while revenue rose 24% year over year to $3.99 billion. Analysts maintain a consensus “Moderate Buy” rating with an average price target of $143.39.
• Institutional investors hold 87.18% of the stock, while insiders sold 18,993 shares worth approximately $1.72 million during the last quarter, primarily through pre-arranged trading plans.

ServiceNow, Inc. (NYSE:NOW - Get Free Report) shares traded up 6.4% during mid-day trading on Friday . The stock traded as high as $126.15 and last traded at $124.9110. 25,486,291 shares traded hands during trading, an increase of 6% from the average daily volume of 24,041,828 shares. The stock had previously closed at $117.35.

Wall Street Analysts Forecast Growth

A number of analysts have recently commented on NOW shares. Jefferies Financial Group reissued a "buy" rating and set a $140.00 target price (up from $135.00) on shares of ServiceNow in a research note on Thursday, July 23rd. Truist Financial raised their price target on shares of ServiceNow from $120.00 to $130.00 and gave the company a "buy" rating in a research note on Thursday, July 9th. Cantor Fitzgerald lifted their price objective on ServiceNow from $122.00 to $141.00 and gave the stock an "overweight" rating in a report on Monday, July 20th. Citizens Jmp reiterated a "market outperform" rating and set a $157.00 price objective on shares of ServiceNow in a research note on Tuesday, May 5th. Finally, Barclays reissued 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. One equities research analyst has rated the stock with a Strong Buy rating, thirty-six have given a Buy rating, two have given a Hold rating and three have issued a Sell rating to the stock. Based on data from MarketBeat, the company has a consensus rating of "Moderate Buy" and an average price target of $143.39.

ServiceNow Stock Performance

The stock has a market cap of $129.16 billion, a PE ratio of 78.07, a P/E/G ratio of 2.06 and a beta of 0.94. The company has a quick ratio of 0.70, a current ratio of 0.70 and a debt-to-equity ratio of 0.43. The stock has a 50-day moving average of $106.72 and a 200 day moving average of $105.73.

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

Insider Activity

In other ServiceNow news, Director Paul Edward Chamberlain sold 1,500 shares of the business's stock in a transaction dated Thursday, May 14th. The shares were sold at an average price of $87.23, for a total value of $130,845.00. Following the transaction, the director directly owned 44,930 shares in the company, valued at $3,919,243.90. The trade was a 3.23% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Paul Fipps sold 1,048 shares of the stock in a transaction that occurred on 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 sale, the insider directly owned 12,072 shares of the company's stock, valued at approximately $1,189,212.72. This trade represents a 7.99% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. 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. In the last quarter, insiders have sold 18,993 shares of company stock valued at $1,716,436. 0.34% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Large investors have recently added to or reduced their stakes in the business. Covenant Asset Management LLC raised its holdings in shares of ServiceNow by 169.2% during the fourth quarter. Covenant Asset Management LLC now owns 20,863 shares of the information technology services provider's stock worth $3,196,000 after purchasing an additional 13,114 shares during the period. Norges Bank bought a new stake in shares of ServiceNow during the 4th quarter valued at about $2,020,992,000. World Investment Advisors grew its position in shares of ServiceNow by 411.7% during the 4th quarter. World Investment Advisors now owns 47,955 shares of the information technology services provider's stock valued at $7,346,000 after buying an additional 38,583 shares during the last quarter. Moors & Cabot Inc. raised its stake in ServiceNow by 387.7% during the fourth quarter. Moors & Cabot Inc. now owns 45,630 shares of the information technology services provider's stock worth $6,990,000 after acquiring an additional 36,274 shares during the period. Finally, Sumitomo Mitsui Trust Group Inc. grew its holdings in shares of ServiceNow by 385.9% during the fourth quarter. Sumitomo Mitsui Trust Group Inc. now owns 2,599,397 shares of the information technology services provider's stock valued at $398,202,000 after purchasing an additional 2,064,440 shares during the last quarter. 87.18% of the stock is currently owned by institutional investors and hedge funds.

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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