ServiceNow (NYSE:NOW) Shares Down 6.6% After Analyst Downgrade

ServiceNow, Inc. (NYSE:NOW)’s stock price was down 6.6% on Thursday after StockNews.com downgraded the stock from a buy rating to a hold rating. The stock traded as low as $689.00 and last traded at $696.86. Approximately 1,380,634 shares changed hands during mid-day trading, an increase of 16% from the average daily volume of 1,187,097 shares. The stock had previously closed at $746.29.

Other equities analysts have also issued reports about the stock. Mizuho boosted their target price on shares of ServiceNow from $750.00 to $820.00 and gave the company a “buy” rating in a report on Thursday, January 25th. Morgan Stanley boosted their target price on shares of ServiceNow from $814.00 to $830.00 and gave the company an “overweight” rating in a report on Thursday. UBS Group reduced their price target on shares of ServiceNow from $920.00 to $875.00 and set a “buy” rating on the stock in a research note on Thursday. Royal Bank of Canada boosted their price target on shares of ServiceNow from $840.00 to $850.00 and gave the company an “outperform” rating in a research note on Thursday, January 25th. Finally, Truist Financial boosted their price target on shares of ServiceNow from $700.00 to $750.00 and gave the company a “hold” rating in a research note on Thursday, January 25th. Four research analysts have rated the stock with a hold rating and twenty-two have issued a buy rating to the stock. According to data from MarketBeat.com, ServiceNow currently has an average rating of “Moderate Buy” and an average price target of $782.85.

Insider Buying and Selling at ServiceNow

In other ServiceNow news, insider Paul John Smith sold 1,180 shares of the stock in a transaction that occurred on Tuesday, February 13th. The shares were sold at an average price of $767.12, for a total value of $905,201.60. Following the sale, the insider now directly owns 1,392 shares of the company’s stock, valued at approximately $1,067,831.04. The sale was disclosed in a legal filing with the SEC, which is available at the SEC website. In other ServiceNow news, insider Paul John Smith sold 1,180 shares of the stock in a transaction that occurred on Tuesday, February 13th. The shares were sold at an average price of $767.12, for a total value of $905,201.60. Following the sale, the insider now directly owns 1,392 shares of the company’s stock, valued at approximately $1,067,831.04. The sale was disclosed in a legal filing with the SEC, which is available at the SEC website. Also, CEO William R. Mcdermott sold 5,030 shares of the stock in a transaction that occurred on Tuesday, February 20th. The shares were sold at an average price of $753.08, for a total transaction of $3,787,992.40. Following the completion of the sale, the chief executive officer now directly owns 17,177 shares in the company, valued at $12,935,655.16. The disclosure for this sale can be found here. In the last three months, insiders have sold 13,164 shares of company stock valued at $9,940,303. Insiders own 0.25% of the company’s stock.

Institutional Inflows and Outflows

Several large investors have recently modified their holdings of NOW. PFG Private Wealth Management LLC acquired a new position in shares of ServiceNow in the 3rd quarter valued at $28,000. University of Texas Texas AM Investment Managment Co. acquired a new position in shares of ServiceNow in the 4th quarter valued at $29,000. AdvisorNet Financial Inc boosted its holdings in shares of ServiceNow by 266.7% in the 4th quarter. AdvisorNet Financial Inc now owns 44 shares of the information technology services provider’s stock valued at $31,000 after buying an additional 32 shares in the last quarter. Steward Financial Group LLC boosted its holdings in shares of ServiceNow by 125.0% in the 3rd quarter. Steward Financial Group LLC now owns 63 shares of the information technology services provider’s stock valued at $35,000 after buying an additional 35 shares in the last quarter. Finally, Princeton Global Asset Management LLC acquired a new position in shares of ServiceNow in the 3rd quarter valued at $35,000. Institutional investors and hedge funds own 87.18% of the company’s stock.

ServiceNow Stock Performance

The firm’s fifty day moving average price is $759.21 and its 200-day moving average price is $707.90. The company has a current ratio of 1.06, a quick ratio of 1.06 and a debt-to-equity ratio of 0.20. The firm has a market cap of $148.48 billion, a price-to-earnings ratio of 77.32, a PEG ratio of 4.72 and a beta of 0.97.

ServiceNow (NYSE:NOW) last issued its earnings results on Wednesday, January 24th. The information technology services provider reported $3.11 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.77 by $0.34. The business had revenue of $2.44 billion during the quarter, compared to analysts’ expectations of $2.40 billion. ServiceNow had a net margin of 20.34% and a return on equity of 14.00%. The company’s revenue for the quarter was up 25.6% on a year-over-year basis. During the same quarter in the prior year, the business posted $0.88 EPS. Analysts expect that ServiceNow, Inc. will post 6.16 earnings per share for the current year.

About ServiceNow

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.