ServiceNow (NYSE:NOW) Trading Down 2.2% – Here’s Why

ServiceNow, Inc. (NYSE:NOW) shares fell 2.2% on Wednesday . The stock traded as low as $121.85 and last traded at $124.76. 12,485,922 shares were traded during trading, a decline of 48% from the average daily volume of 23,868,641 shares. The stock had previously closed at $127.54.

Wall Street Analysts Forecast Growth

Several research firms have commented on NOW. Citic Securities lowered their price objective on ServiceNow from $168.00 to $140.00 and set a “buy” rating on the stock in a research report on Thursday, May 21st. Capital One Financial boosted their target price on shares of ServiceNow from $105.00 to $120.00 and gave the company an “overweight” rating in a research note on Tuesday, May 5th. Robert W. Baird increased their price target on shares of ServiceNow from $118.00 to $125.00 and gave the stock an “outperform” rating in a report on Thursday, July 23rd. Deutsche Bank Aktiengesellschaft dropped their price target on shares of ServiceNow from $180.00 to $135.00 and set a “buy” rating on the stock in a research report on Thursday, April 16th. Finally, Morgan Stanley set a $180.00 price objective on shares of ServiceNow in a report on Tuesday, July 21st. One equities research analyst has rated the stock with a Strong Buy rating, thirty-six have given a Buy rating, two have issued a Hold rating and three have given a Sell rating to the company’s stock. According to data from MarketBeat, the company has a consensus rating of “Moderate Buy” and an average target price of $143.76.

ServiceNow Trading Down 2.2%

The firm has a market capitalization of $129.00 billion, a price-to-earnings ratio of 77.97, a P/E/G ratio of 2.24 and a beta of 0.94. The company has a debt-to-equity ratio of 0.43, a quick ratio of 0.70 and a current ratio of 0.70. The company has a 50 day moving average price of $106.56 and a two-hundred day moving average price of $105.74.

ServiceNow (NYSE:NOW) last released its quarterly earnings results on Wednesday, July 22nd. The information technology services provider reported $0.90 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.86 by $0.04. The firm had revenue of $3.99 billion for the quarter, compared to analysts’ expectations of $3.93 billion. ServiceNow had a net margin of 11.34% and a return on equity of 16.45%. The firm’s revenue for the quarter was up 24.0% compared to the same quarter last year. During the same quarter last year, the company earned $0.81 EPS. On average, research analysts forecast that ServiceNow, Inc. will post 2.24 EPS for the current year.

Insiders Place Their Bets

In other ServiceNow news, insider Paul Fipps sold 1,048 shares of the stock in a transaction that occurred 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 owned 12,072 shares of the company’s stock, valued at $1,189,212.72. This represents a 7.99% decrease in their ownership of the stock. The sale 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. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Director Anita M. Sands sold 16,445 shares of ServiceNow stock in a transaction that occurred on Thursday, May 14th. The stock was sold at an average price of $90.14, for a total value of $1,482,352.30. Following the completion of the sale, the director directly 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 disclosure for this sale is available in the SEC filing. In the last three months, insiders sold 18,993 shares of company stock worth $1,716,436. Corporate insiders own 0.34% of the company’s stock.

Institutional Investors Weigh In On ServiceNow

A number of hedge funds have recently modified their holdings of NOW. Quantbot Technologies LP purchased a new position in shares of ServiceNow in the second quarter worth about $3,118,000. Evolve Private Wealth LLC purchased a new stake in ServiceNow during the 2nd quarter valued at about $772,000. WealthShield Partners LLC purchased a new stake in ServiceNow during the 2nd quarter valued at about $228,000. Varma Mutual Pension Insurance Co acquired a new stake in ServiceNow in the 2nd quarter valued at about $19,530,000. Finally, X Square Capital LLC purchased a new position in ServiceNow in the 2nd quarter worth approximately $4,920,000. 87.18% of the stock is currently owned by institutional investors and hedge funds.

ServiceNow Company Profile

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.