ServiceNow (NYSE:NOW) Shares Down 2.4% – Should You Sell?

Shares of ServiceNow, Inc. (NYSE:NOW) dropped 2.4% during mid-day trading on Friday . The company traded as low as $135.07 and last traded at $135.2060. 18,811,563 shares changed hands during mid-day trading, a decline of 17% from the average daily volume of 22,796,012 shares. The stock had previously closed at $138.47.

Analysts Set New Price Targets

NOW has been the topic of several recent research reports. Citic Securities lowered their price target on shares of ServiceNow from $168.00 to $140.00 and set a “buy” rating on the stock in a report on Thursday, May 21st. TD Cowen reaffirmed a “buy” rating and set a $140.00 target price on shares of ServiceNow in a report on Monday, August 17th. DA Davidson set a $170.00 price target on ServiceNow and gave the company a “buy” rating in a report on Monday, July 20th. Jefferies Financial Group restated a “buy” rating and set a $140.00 price target (up from $135.00) on shares of ServiceNow in a report on Thursday, July 23rd. Finally, CLSA assumed coverage on ServiceNow in a research report on Monday, July 20th. They set an “underperform” rating and a $72.00 price target for the company. One investment analyst has rated the stock with a Strong Buy rating, thirty-six have assigned a Buy rating, three have given a Hold rating and two have assigned a Sell rating to the company’s stock. Based on data from MarketBeat.com, ServiceNow presently has a consensus rating of “Moderate Buy” and a consensus target price of $145.71.

ServiceNow Price Performance

The company has a 50 day simple moving average of $122.82 and a 200 day simple moving average of $109.95. The company has a market capitalization of $139.80 billion, a price-to-earnings ratio of 84.50, a price-to-earnings-growth ratio of 2.57 and a beta of 0.97. The company has a quick ratio of 0.70, a current ratio of 0.70 and a debt-to-equity ratio of 0.43.

ServiceNow (NYSE:NOW) last posted its quarterly earnings results on Wednesday, July 22nd. The information technology services provider reported $0.90 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.86 by $0.04. ServiceNow had a return on equity of 16.45% and a net margin of 11.34%.The business had revenue of $3.99 billion for the quarter, compared to analyst estimates of $3.93 billion. During the same period in the prior year, the company posted $0.81 EPS. The business’s revenue was up 24.0% compared to the same quarter last year. As a group, research analysts predict that ServiceNow, Inc. will post 2.22 EPS for the current year.

Insider Transactions at ServiceNow

In other ServiceNow news, Director Paul Chamberlain sold 2,700 shares of the firm’s stock in a transaction on Thursday, August 27th. The shares were sold at an average price of $135.50, for a total value of $365,850.00. Following the sale, the director directly owned 43,990 shares in the company, valued at $5,960,645. This trade represents a 5.78% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. Also, insider Jacqueline P. Canney sold 7,847 shares of the company’s stock in a transaction on Friday, August 28th. The shares were sold at an average price of $138.00, for a total value of $1,082,886.00. Following the completion of the transaction, the insider owned 30,042 shares of the company’s stock, valued at $4,145,796. The trade was a 20.71% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders have sold 14,081 shares of company stock valued at $1,937,904. 0.34% of the stock is owned by insiders.

Institutional Investors Weigh In On ServiceNow

Institutional investors and hedge funds have recently made changes to their positions in the company. National Pension Service raised its position in shares of ServiceNow by 5.8% in the 2nd quarter. National Pension Service now owns 2,705,240 shares of the information technology services provider’s stock valued at $268,576,000 after acquiring an additional 147,467 shares during the period. WINTON GROUP Ltd grew its holdings in shares of ServiceNow by 45.9% in the 2nd quarter. WINTON GROUP Ltd now owns 132,411 shares of the information technology services provider’s stock valued at $13,146,000 after acquiring an additional 41,653 shares in the last quarter. Engineers Gate Manager LP boosted its holdings in shares of ServiceNow by 6.7% in the 2nd quarter. Engineers Gate Manager LP now owns 370,643 shares of the information technology services provider’s stock valued at $36,797,000 after buying an additional 23,409 shares during the last quarter. Capital Analysts LLC grew its position in shares of ServiceNow by 12,952.5% in the 2nd quarter. Capital Analysts LLC now owns 5,221 shares of the information technology services provider’s stock valued at $518,000 after acquiring an additional 5,181 shares during the period. Finally, SVB Wealth LLC lifted its stake in ServiceNow by 11.9% in the 2nd quarter. SVB Wealth LLC now owns 2,618 shares of the information technology services provider’s stock valued at $260,000 after purchasing an additional 278 shares during the last quarter. Institutional investors own 87.18% of the company’s stock.

ServiceNow Company Profile

ServiceNow, Inc is a cloud-based enterprise software company that provides digital workflow and automation solutions. Its Now Platform enables organizations to manage and connect business processes across information technology, customer service, human resources, finance, legal operations and other departments.

The company’s products and services include IT service management, IT operations management, customer service management, human resources service delivery, security operations, risk and compliance management, strategic portfolio management and application development tools.