ServiceNow (NYSE:NOW) Shares Down 2.1% – Here’s What Happened

Shares of ServiceNow, Inc. (NYSE:NOW) were down 2.1% on Thursday. The company traded as low as $99.63 and last traded at $100.65. 9,672,738 shares were traded during mid-day trading, a decline of 55% from the average daily volume of 21,486,094 shares. The stock had previously closed at $102.76.

ServiceNow News Summary

These are some of the NOW news items that stood out recently:

• Positive Sentiment: Analyst sentiment is broadly favorable, with a reported average price target of $154.50 and most covering analysts rating the shares a Buy. Targets may lag changing market expectations, however. Analyst price target report
• Neutral Sentiment: An insider sold 1,289 shares under a pre-arranged trading plan to cover tax withholding on vested equity awards, a transaction that is less informative than an open-market sale. Insider sale details
• Negative Sentiment: Pomerantz is investigating potential investor claims involving ServiceNow. The notice provides no finding of wrongdoing, but the investigation may add uncertainty and has been reported repeatedly this week. Pomerantz investigation notice

Wall Street Analysts Forecast Growth

NOW has been the topic of a number of recent research reports. Barclays set a $152.00 target price on ServiceNow and gave the company an “overweight” rating in a research report on Thursday, October 29th. Wells Fargo & Company decreased their price objective on shares of ServiceNow from $190.00 to $175.00 and set an “overweight” rating for the company in a research note on Thursday, October 29th. Robert W. Baird set a $185.00 price objective on shares of ServiceNow in a report on Thursday, October 29th. The Goldman Sachs Group reiterated a “buy” rating on shares of ServiceNow in a research note on Monday, August 3rd. Finally, Citigroup reduced their target price on shares of ServiceNow from $170.00 to $157.00 and set a “buy” rating for the company in a report on Thursday, October 29th. One equities research analyst has rated the stock with a Strong Buy rating, thirty-six have given a Buy rating, three have issued a Hold rating and three have issued a Sell rating to the company’s stock. According to data from MarketBeat, the company presently has an average rating of “Moderate Buy” and a consensus target price of $154.50.

ServiceNow Stock Performance

The company has a current ratio of 0.72, a quick ratio of 0.72 and a debt-to-equity ratio of 0.42. The stock has a market capitalization of $104.47 billion, a PE ratio of 72.41, a price-to-earnings-growth ratio of 1.95 and a beta of 1.00. The firm’s fifty day moving average price is $133.69 and its two-hundred day moving average price is $114.40.

ServiceNow (NYSE:NOW) last announced its quarterly earnings results on Wednesday, October 28th. The information technology services provider reported $1.00 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $1.02 by ($0.02). The firm had revenue of $4.11 billion for the quarter, compared to analysts’ expectations of $4.09 billion. ServiceNow had a return on equity of 15.17% and a net margin of 9.36%. The business’s quarterly revenue was up 20.5% on a year-over-year basis. During the same period last year, the company posted $4.82 earnings per share. As a group, equities research analysts forecast that ServiceNow, Inc. will post 2.12 EPS for the current year.

Insider Transactions at ServiceNow

In other news, Director Paul Chamberlain sold 2,700 shares of the firm’s stock in a transaction dated Thursday, August 27th. The stock was sold at an average price of $135.50, for a total transaction 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 legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, insider Paul Fipps sold 2,034 shares of ServiceNow stock in a transaction dated Monday, August 31st. The shares were sold at an average price of $147.87, for a total value of $300,767.58. Following the completion of the transaction, the insider owned 18,305 shares of the company’s stock, valued at approximately $2,706,760.35. This represents a 10.00% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 13,870 shares of company stock valued at $1,880,595 in the last ninety days. 0.34% of the stock is currently owned by corporate insiders.

Institutional Trading of ServiceNow

Institutional investors have recently bought and sold shares of the business. A. D. Beadell Investment Counsel Inc. grew its stake in ServiceNow by 2.9% in the 2nd quarter. A. D. Beadell Investment Counsel Inc. now owns 2,818 shares of the information technology services provider’s stock valued at $279,000 after acquiring an additional 80 shares during the period. DUTCH ASSET Corp raised its position in ServiceNow by 0.5% during the third quarter. DUTCH ASSET Corp now owns 16,331 shares of the information technology services provider’s stock worth $2,189,000 after acquiring an additional 82 shares during the period. Atwood & Palmer Inc. raised its position in ServiceNow by 20.0% during the second quarter. Atwood & Palmer Inc. now owns 600 shares of the information technology services provider’s stock worth $60,000 after acquiring an additional 100 shares during the period. Diligent Investors LLC lifted its holdings in ServiceNow by 4.1% during the third quarter. Diligent Investors LLC now owns 2,560 shares of the information technology services provider’s stock valued at $343,000 after purchasing an additional 100 shares in the last quarter. Finally, Signature Wealth Management Partners LLC lifted its holdings in ServiceNow by 3.3% during the third quarter. Signature Wealth Management Partners LLC now owns 3,281 shares of the information technology services provider’s stock valued at $440,000 after purchasing an additional 106 shares in the last quarter. 87.18% of the stock is owned by institutional investors and hedge funds.

ServiceNow Company Profile

ServiceNow, Inc. provides cloud-based software that helps organizations manage digital workflows and automate business processes. Founded in 2004 by Fred Luddy, the company began with a focus on IT service management and has expanded its platform to support a range of enterprise operations. Its products include tools for IT service and operations management, customer service, human resources, security, and application development. ServiceNow also offers artificial intelligence capabilities, including tools designed to help organizations automate tasks and find information across workflows.