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

Shares of ServiceNow, Inc. (NYSE:NOW) gapped down prior to trading on Monday . The stock had previously closed at $865.06, but opened at $798.00. ServiceNow shares last traded at $783.6970, with a volume of 632,025 shares traded.

Wall Street Analyst Weigh In

A number of research analysts have recently issued reports on NOW shares. JPMorgan Chase & Co. boosted their price objective on ServiceNow from $1,020.00 to $1,075.00 and gave the company an “overweight” rating in a research note on Thursday, October 30th. Arete Research raised ServiceNow to a “hold” rating in a research note on Thursday. Cowen reaffirmed a “buy” rating on shares of ServiceNow in a research report on Friday, October 24th. The Goldman Sachs Group reiterated a “buy” rating and issued a $1,250.00 price objective on shares of ServiceNow in a research note on Thursday, October 30th. Finally, Canaccord Genuity Group reissued a “buy” rating and set a $1,120.00 target price on shares of ServiceNow in a research note on Thursday, October 30th. One analyst has rated the stock with a Strong Buy rating, thirty-one have given a Buy rating, five have assigned a Hold rating and two have issued a Sell rating to the company’s stock. Based on data from MarketBeat, ServiceNow presently has an average rating of “Moderate Buy” and an average target price of $1,137.58.

ServiceNow Stock Performance

The company’s 50 day simple moving average is $873.65 and its 200 day simple moving average is $924.62. The company has a debt-to-equity ratio of 0.13, a quick ratio of 1.06 and a current ratio of 1.06. The stock has a market cap of $160.45 billion, a PE ratio of 93.31, a price-to-earnings-growth ratio of 3.61 and a beta of 0.97.

Shares of ServiceNow are set to split on Thursday, December 18th. The 5-1 split was recently announced. The newly minted shares will be distributed to shareholders after the market closes on Wednesday, December 17th.

ServiceNow (NYSE:NOW) last announced its quarterly earnings data on Wednesday, October 29th. The information technology services provider reported $4.82 EPS for the quarter, topping the consensus estimate of $4.21 by $0.61. The business had revenue of $3.41 billion for the quarter, compared to analyst estimates of $3.35 billion. ServiceNow had a net margin of 13.66% and a return on equity of 18.74%. The company’s revenue for the quarter was up 21.8% on a year-over-year basis. During the same quarter in the previous year, the firm posted $3.72 earnings per share. Analysts expect that ServiceNow, Inc. will post 8.93 earnings per share for the current year.

Insider Activity

In other news, CFO Gina Mastantuono sold 417 shares of the business’s stock in a transaction that occurred on Friday, November 28th. The shares were sold at an average price of $808.00, for a total value of $336,936.00. Following the sale, the chief financial officer owned 12,643 shares of the company’s stock, valued at $10,215,544. The trade was a 3.19% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. Also, Vice Chairman Nicholas Tzitzon sold 522 shares of the company’s stock in a transaction that occurred on Tuesday, November 18th. The shares were sold at an average price of $827.08, for a total transaction of $431,735.76. Following the sale, the insider owned 3,000 shares in the company, valued at $2,481,240. The trade was a 14.82% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last three months, insiders have sold 3,062 shares of company stock valued at $2,533,585. 0.34% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On ServiceNow

Several hedge funds have recently made changes to their positions in NOW. Wealth Preservation Advisors LLC bought a new stake in ServiceNow during the first quarter worth about $382,000. Corient IA LLC bought a new position in shares of ServiceNow during the first quarter valued at approximately $796,000. Cascade Investment Group Inc. lifted its holdings in shares of ServiceNow by 12.8% during the first quarter. Cascade Investment Group Inc. now owns 451 shares of the information technology services provider’s stock valued at $359,000 after purchasing an additional 51 shares during the last quarter. Klingman & Associates LLC boosted its position in shares of ServiceNow by 22.2% in the 2nd quarter. Klingman & Associates LLC now owns 533 shares of the information technology services provider’s stock worth $548,000 after purchasing an additional 97 shares in the last quarter. Finally, Ethic Inc. grew its stake in shares of ServiceNow by 1.6% in the 2nd quarter. Ethic Inc. now owns 25,496 shares of the information technology services provider’s stock worth $26,067,000 after buying an additional 397 shares during the last quarter. 87.18% of the stock is currently owned by hedge funds and other institutional investors.

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.