ServiceNow (NYSE:NOW) Rating Increased to Buy at Wall Street Zen

Key Points

• ServiceNow has been upgraded from a "hold" rating to a "buy" rating by Wall Street Zen, reflecting positive analyst sentiment towards the company's stock.
• The stock currently has an average price target of $1,115.20 and a "Moderate Buy" recommendation based on various analysts' evaluations.
• In its latest earnings report, ServiceNow reported an EPS of $4.09, exceeding estimates significantly and showcasing a revenue growth of 22.4% year-over-year.

ServiceNow (NYSE:NOW - Get Free Report) was upgraded by Wall Street Zen from a "hold" rating to a "buy" rating in a research note issued to investors on Tuesday.

Other equities research analysts have also issued reports about the company. Sanford C. Bernstein reissued an "outperform" rating and set a $1,003.00 price target on shares of ServiceNow in a research report on Thursday, April 24th. Raymond James Financial increased their target price on ServiceNow from $1,000.00 to $1,100.00 and gave the stock an "outperform" rating in a research report on Thursday, July 24th. JMP Securities reissued a "market outperform" rating and set a $1,300.00 price target on shares of ServiceNow in a report on Tuesday, July 22nd. Bank of America raised their price target on ServiceNow from $1,110.00 to $1,200.00 and gave the company a "buy" rating in a report on Thursday, July 24th. Finally, Truist Financial raised ServiceNow from a "hold" rating to a "buy" rating and raised their target price for the company from $950.00 to $1,200.00 in a research note on Thursday, May 1st. One analyst has rated the stock with a sell rating, three have assigned a hold rating, thirty have issued a buy rating and one has issued a strong buy rating to the company. According to data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and a consensus target price of $1,115.20.

ServiceNow Price Performance

Shares of NYSE NOW traded up $6.33 during trading on Tuesday, hitting $992.08. 1,206,730 shares of the company were exchanged, compared to its average volume of 1,476,975. ServiceNow has a 1 year low of $678.66 and a 1 year high of $1,198.09. The company has a debt-to-equity ratio of 0.14, a current ratio of 1.09 and a quick ratio of 1.09. The firm's fifty day moving average price is $999.53 and its 200 day moving average price is $951.58. The company has a market cap of $206.35 billion, a price-to-earnings ratio of 124.95, a PEG ratio of 4.44 and a beta of 0.94.

ServiceNow (NYSE:NOW - Get Free Report) last announced its earnings results on Wednesday, July 23rd. The information technology services provider reported $4.09 earnings per share for the quarter, beating 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 firm had revenue of $3.22 billion during the quarter, compared to the consensus estimate of $3.12 billion. During the same quarter in the previous year, the company posted $3.13 EPS. The firm's revenue for the quarter was up 22.4% on a year-over-year basis. On average, sell-side analysts expect that ServiceNow will post 8.93 earnings per share for the current fiscal year.

Insider Activity at ServiceNow

In other news, CEO William R. Mcdermott sold 2,050 shares of ServiceNow stock in a transaction dated Friday, May 30th. The stock was sold at an average price of $1,012.01, for a total value of $2,074,620.50. Following the completion of the transaction, the chief executive officer directly owned 6,614 shares of the company's stock, valued at approximately $6,693,434.14. This trade represents a 23.66% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, Vice Chairman Nicholas Tzitzon sold 1,171 shares of ServiceNow stock in a transaction dated Friday, May 30th. The stock was sold at an average price of $1,020.00, for a total value of $1,194,420.00. Following the completion of the transaction, the insider directly owned 3,000 shares of the company's stock, valued at approximately $3,060,000. This trade represents a 28.07% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold a total of 5,233 shares of company stock worth $5,297,758 over the last 90 days. 0.38% of the stock is currently owned by company insiders.

Institutional Trading of ServiceNow

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Bogart Wealth LLC increased its holdings in ServiceNow by 113.3% during the 1st quarter. Bogart Wealth LLC now owns 32 shares of the information technology services provider's stock worth $25,000 after purchasing an additional 17 shares in the last quarter. Graybill Wealth Management LTD. purchased a new position in shares of ServiceNow in the 1st quarter worth approximately $26,000. Quarry LP purchased a new position in shares of ServiceNow in the 4th quarter worth approximately $27,000. WASHINGTON TRUST Co boosted its stake in shares of ServiceNow by 620.0% in the 1st quarter. WASHINGTON TRUST Co now owns 36 shares of the information technology services provider's stock worth $29,000 after buying an additional 31 shares during the last quarter. Finally, Global X Japan Co. Ltd. purchased a new position in shares of ServiceNow in the 2nd quarter worth approximately $30,000. 87.18% of the stock is owned by institutional investors.

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.