ServiceNow (NYSE:NOW) Shares Down 0.4% – Should You Sell?

ServiceNow, Inc. (NYSE:NOW) dropped 0.4% on Monday . The stock traded as low as $966.60 and last traded at $985.67. Approximately 1,502,276 shares were traded during trading, a decline of 15% from the average daily volume of 1,777,070 shares. The stock had previously closed at $989.48.

Analyst Ratings Changes

Several brokerages have recently commented on NOW. Needham & Company LLC boosted their target price on ServiceNow from $1,150.00 to $1,200.00 and gave the stock a “buy” rating in a report on Thursday, January 30th. Barclays lifted their price target on ServiceNow from $980.00 to $1,000.00 and gave the company an “overweight” rating in a report on Thursday, October 24th. Mizuho raised their price objective on shares of ServiceNow from $1,070.00 to $1,210.00 and gave the company an “outperform” rating in a research report on Friday, December 13th. Morgan Stanley lowered shares of ServiceNow from an “overweight” rating to an “equal weight” rating and upped their target price for the stock from $900.00 to $960.00 in a research report on Monday, October 21st. Finally, KeyCorp cut shares of ServiceNow from an “overweight” rating to a “sector weight” rating in a research report on Friday, December 13th. One research analyst has rated the stock with a sell rating, four have given a hold rating, twenty-four have issued a buy rating and two have issued a strong buy rating to the company’s stock. According to MarketBeat, the company has an average rating of “Moderate Buy” and an average price target of $1,129.72.

ServiceNow Stock Performance

The firm has a market cap of $203.05 billion, a price-to-earnings ratio of 144.31, a price-to-earnings-growth ratio of 4.76 and a beta of 0.99. The stock has a 50-day moving average of $1,070.53 and a 200-day moving average of $973.32. The company has a debt-to-equity ratio of 0.15, a quick ratio of 1.10 and a current ratio of 1.10.

ServiceNow (NYSE:NOW) last announced its earnings results on Wednesday, January 29th. The information technology services provider reported $3.67 EPS for the quarter, hitting the consensus estimate of $3.67. ServiceNow had a net margin of 12.97% and a return on equity of 17.11%. As a group, analysts anticipate that ServiceNow, Inc. will post 8.93 EPS for the current fiscal year.

ServiceNow declared that its board has authorized a stock repurchase program on Wednesday, January 29th that permits the company to buyback $3.00 billion in outstanding shares. This buyback authorization permits the information technology services provider to purchase up to 1.3% of its stock through open market purchases. Stock buyback programs are often a sign that the company’s board of directors believes its shares are undervalued.

Insider Activity at ServiceNow

In other news, insider Nicholas Tzitzon sold 313 shares of the stock in a transaction dated Monday, November 25th. The shares were sold at an average price of $1,064.60, for a total value of $333,219.80. Following the transaction, the insider now directly owns 3,649 shares of the company’s stock, valued at $3,884,725.40. This represents a 7.90 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, CEO William R. Mcdermott sold 12,271 shares of ServiceNow stock in a transaction dated Tuesday, November 19th. The stock was sold at an average price of $997.67, for a total transaction of $12,242,408.57. Following the sale, the chief executive officer now directly owns 2,595 shares of the company’s stock, valued at $2,588,953.65. The trade was a 82.54 % decrease in their position. The disclosure for this sale can be found here. In the last ninety days, insiders sold 23,082 shares of company stock worth $23,401,482. Insiders own 0.25% of the company’s stock.

Hedge Funds Weigh In On ServiceNow

Several institutional investors and hedge funds have recently made changes to their positions in NOW. Focus Partners Wealth boosted its stake in ServiceNow by 139.4% in the 4th quarter. Focus Partners Wealth now owns 125,127 shares of the information technology services provider’s stock valued at $135,358,000 after purchasing an additional 72,860 shares during the period. Fullerton Fund Management Co Ltd. boosted its position in shares of ServiceNow by 35.1% in the fourth quarter. Fullerton Fund Management Co Ltd. now owns 654 shares of the information technology services provider’s stock valued at $693,000 after acquiring an additional 170 shares during the period. Ethic Inc. grew its stake in shares of ServiceNow by 21.9% in the fourth quarter. Ethic Inc. now owns 25,747 shares of the information technology services provider’s stock valued at $27,294,000 after acquiring an additional 4,620 shares in the last quarter. Fiduciary Trust Co raised its stake in ServiceNow by 0.4% in the 4th quarter. Fiduciary Trust Co now owns 5,579 shares of the information technology services provider’s stock worth $5,914,000 after purchasing an additional 22 shares in the last quarter. Finally, FORA Capital LLC bought a new stake in ServiceNow in the 4th quarter valued at about $6,612,000. Institutional investors and hedge funds own 87.18% of the company’s stock.

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.