ServiceNow (NYSE:NOW) Shares Down 2.2% – What’s Next?

ServiceNow, Inc. (NYSE:NOW)’s share price traded down 2.2% on Monday . The company traded as low as $91.48 and last traded at $92.9580. 24,796,014 shares traded hands during mid-day trading, an increase of 3% from the average session volume of 24,164,162 shares. The stock had previously closed at $95.04.

Wall Street Analyst Weigh In

A number of brokerages have commented on NOW. BNP Paribas Exane upgraded ServiceNow from a “neutral” rating to an “outperform” rating and set a $140.00 price objective on the stock in a research report on Monday, March 16th. Oppenheimer restated an “outperform” rating on shares of ServiceNow in a research report on Tuesday, May 26th. Citic Securities cut their price target on ServiceNow from $168.00 to $140.00 and set a “buy” rating on the stock in a research note on Thursday, May 21st. Wolfe Research set a $125.00 price target on ServiceNow in a report on Thursday, April 23rd. Finally, Robert W. Baird lowered their price objective on ServiceNow from $125.00 to $118.00 and set an “outperform” rating for the company in a research report on Thursday, April 23rd. One equities research analyst has rated the stock with a Strong Buy rating, thirty-five have assigned a Buy rating, five have issued a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, ServiceNow presently has a consensus rating of “Moderate Buy” and a consensus price target of $142.17.

ServiceNow Stock Performance

The stock has a market cap of $95.84 billion, a P/E ratio of 55.40, a PEG ratio of 1.58 and a beta of 0.94. The stock has a fifty day simple moving average of $99.56 and a 200-day simple moving average of $117.48. The company has a quick ratio of 0.84, a current ratio of 0.84 and a debt-to-equity ratio of 0.13.

ServiceNow (NYSE:NOW) last announced its quarterly earnings results on Wednesday, April 22nd. The information technology services provider reported $0.97 earnings per share for the quarter, meeting analysts’ consensus estimates of $0.97. The business had revenue of $3.77 billion for the quarter, compared to the consensus estimate of $3.75 billion. ServiceNow had a net margin of 12.59% and a return on equity of 18.16%. ServiceNow’s revenue for the quarter was up 22.1% on a year-over-year basis. During the same period last year, the company posted $0.81 EPS. Equities analysts expect that ServiceNow, Inc. will post 2.34 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other news, Director Anita M. Sands sold 16,445 shares of the company’s stock in a transaction that occurred on Thursday, May 14th. The shares were sold at an average price of $90.14, for a total value of $1,482,352.30. Following the completion of the transaction, the director owned 30,090 shares in the company, valued at $2,712,312.60. This represents a 35.34% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Also, insider Paul Fipps sold 1,048 shares of the company’s stock in a transaction on Monday, May 18th. The stock was sold at an average price of $98.51, for a total transaction of $103,238.48. Following the completion of the transaction, the insider directly owned 12,072 shares of the company’s stock, valued at approximately $1,189,212.72. The trade was a 7.99% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold 28,071 shares of company stock valued at $2,529,956 over the last ninety days. 0.34% of the stock is owned by insiders.

Institutional Inflows and Outflows

Hedge funds have recently modified their holdings of the company. IAG Wealth Partners LLC lifted its position in shares of ServiceNow by 200.0% in the third quarter. IAG Wealth Partners LLC now owns 27 shares of the information technology services provider’s stock worth $25,000 after purchasing an additional 18 shares in the last quarter. Wealth Watch Advisors INC bought a new position in ServiceNow in the third quarter valued at $29,000. Texas Capital Bancshares Inc TX bought a new position in ServiceNow in the third quarter valued at $37,000. Ameriflex Group Inc. increased its stake in ServiceNow by 187.5% in the 3rd quarter. Ameriflex Group Inc. now owns 46 shares of the information technology services provider’s stock valued at $42,000 after buying an additional 30 shares during the last quarter. Finally, Kelleher Financial Advisors acquired a new stake in ServiceNow in the 3rd quarter valued at $50,000. 87.18% of the stock is currently owned by institutional investors.

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.