ServiceNow (NYSE:NOW) Trading Down 5% – Here’s Why

ServiceNow, Inc. (NYSE:NOW) shares were down 5% during trading on Tuesday . The stock traded as low as $132.46 and last traded at $134.2110. 14,522,152 shares traded hands during mid-day trading, a decline of 37% from the average session volume of 23,230,377 shares. The stock had previously closed at $141.26.

Wall Street Analyst Weigh In

Several brokerages have commented on NOW. JPMorgan Chase & Co. boosted their target price on shares of ServiceNow from $145.00 to $150.00 and gave the stock an “overweight” rating in a research report on Thursday, July 23rd. Citic Securities cut their price target on shares of ServiceNow from $168.00 to $140.00 and set a “buy” rating for the company in a report on Thursday, May 21st. BMO Capital Markets raised their price objective on shares of ServiceNow from $115.00 to $118.00 and gave the company an “outperform” rating in a research note on Thursday, July 23rd. Morgan Stanley set a $180.00 price objective on shares of ServiceNow in a report on Tuesday, July 21st. Finally, Royal Bank Of Canada reaffirmed an “outperform” rating and issued a $130.00 target price on shares of ServiceNow in a report on Thursday, July 23rd. One equities research analyst has rated the stock with a Strong Buy rating, thirty-six have issued a Buy rating, three have issued a Hold rating and two have given a Sell rating to the company’s stock. Based on data from MarketBeat, the company has an average rating of “Moderate Buy” and an average target price of $144.73.

ServiceNow Stock Performance

The company has a market capitalization of $138.77 billion, a PE ratio of 83.88, a price-to-earnings-growth ratio of 2.57 and a beta of 0.97. The stock’s fifty day simple moving average is $118.03 and its 200-day simple moving average is $108.20. The company has a debt-to-equity ratio of 0.43, a quick ratio of 0.70 and a current ratio of 0.70.

ServiceNow (NYSE:NOW) last issued its quarterly earnings results on Wednesday, July 22nd. The information technology services provider reported $0.90 earnings per share for the quarter, beating the consensus estimate of $0.86 by $0.04. The company had revenue of $3.99 billion during the quarter, compared to the consensus estimate of $3.93 billion. ServiceNow had a return on equity of 16.45% and a net margin of 11.34%.ServiceNow’s revenue was up 24.0% on a year-over-year basis. During the same period in the previous year, the firm posted $0.81 EPS. As a group, equities analysts predict that ServiceNow, Inc. will post 2.24 earnings per share for the current year.

Insider Activity

In related news, insider Jacqueline Canney sold 7,847 shares of the stock in a transaction dated Friday, August 28th. The shares were sold at an average price of $138.00, for a total transaction of $1,082,886.00. Following the sale, the insider owned 30,042 shares in the company, valued at $4,145,796. This represents a 20.71% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Paul Fipps sold 2,034 shares of the stock in a transaction that occurred on Monday, August 31st. The stock was sold at an average price of $147.87, for a total value of $300,767.58. Following the sale, the insider owned 18,305 shares in the company, valued at $2,706,760.35. The trade was a 10.00% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last three months, insiders sold 14,081 shares of company stock valued at $1,937,904. Company insiders own 0.34% of the company’s stock.

Hedge Funds Weigh In On ServiceNow

Several large investors have recently bought and sold shares of the stock. Norges Bank acquired a new stake in shares of ServiceNow in the fourth quarter worth $2,020,992,000. World Investment Advisors lifted 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 worth $7,346,000 after buying an additional 38,583 shares during the period. Moors & Cabot Inc. grew its holdings in shares of ServiceNow by 387.7% in the 4th quarter. Moors & Cabot Inc. now owns 45,630 shares of the information technology services provider’s stock worth $6,990,000 after purchasing an additional 36,274 shares during the last quarter. Bank of Nova Scotia grew its stake in ServiceNow by 53.3% during the first quarter. Bank of Nova Scotia now owns 1,018,036 shares of the information technology services provider’s stock worth $106,436,000 after buying an additional 353,749 shares during the last quarter. Finally, Huntington National Bank grew its position in ServiceNow by 397.1% during the 4th quarter. Huntington National Bank now owns 544,257 shares of the information technology services provider’s stock worth $83,375,000 after acquiring an additional 434,761 shares during the last quarter. Institutional investors and hedge funds own 87.18% of the company’s stock.

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.