ServiceNow (NYSE:NOW) Stock Price Down 2.5% – Should You Sell?

ServiceNow, Inc. (NYSE:NOW) was down 2.5% during mid-day trading on Friday . The stock traded as low as $122.17 and last traded at $124.0760. Approximately 14,560,452 shares changed hands during mid-day trading, a decline of 39% from the average daily volume of 23,801,301 shares. The stock had previously closed at $127.25.

Wall Street Analyst Weigh In

Several research firms have recently weighed in on NOW. Bank of America assumed coverage on ServiceNow in a research note on Monday, May 18th. They set a “buy” rating and a $130.00 price objective for the company. TD Cowen reaffirmed a “buy” rating and set a $140.00 target price on shares of ServiceNow in a research report on Friday, July 17th. Royal Bank Of Canada reaffirmed an “outperform” rating and set a $130.00 target price on shares of ServiceNow in a report on Thursday, July 23rd. Morgan Stanley set a $180.00 price target on ServiceNow in a research report on Tuesday, July 21st. Finally, FBN Securities dropped their price target on ServiceNow from $160.00 to $120.00 in a research note on Thursday, April 23rd. One equities research analyst has rated the stock with a Strong Buy rating, thirty-six have given a Buy rating, two have assigned a Hold rating and three have assigned a Sell rating to the company’s stock. According to MarketBeat, the company presently has an average rating of “Moderate Buy” and a consensus target price of $143.76.

ServiceNow Stock Performance

The firm’s 50-day simple moving average is $106.85 and its two-hundred day simple moving average is $105.67. The company has a current ratio of 0.70, a quick ratio of 0.70 and a debt-to-equity ratio of 0.43. The stock has a market capitalization of $128.29 billion, a PE ratio of 77.55, a PEG ratio of 2.20 and a beta of 0.94.

ServiceNow (NYSE:NOW) last released its 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 company had revenue of $3.99 billion during the quarter, compared to analyst estimates of $3.93 billion. ServiceNow had a return on equity of 16.45% and a net margin of 11.34%.The company’s revenue for the quarter was up 24.0% on a year-over-year basis. During the same quarter in the prior year, the company earned $0.81 earnings per share. On average, equities research analysts expect that ServiceNow, Inc. will post 2.24 earnings per share for the current fiscal year.

Insiders Place Their Bets

In related news, 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 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. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. 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 own 0.34% of the company’s stock.

Hedge Funds Weigh In On ServiceNow

Several institutional investors and hedge funds have recently bought and sold shares of NOW. Vanguard Group Inc. lifted its position in shares of ServiceNow by 404.5% in the fourth quarter. Vanguard Group Inc. now owns 101,963,384 shares of the information technology services provider’s stock worth $15,619,771,000 after purchasing an additional 81,752,460 shares in the last quarter. BlackRock Inc. purchased a new position in ServiceNow during the second quarter valued at approximately $9,536,615,000. State Street Corp grew its position in ServiceNow by 406.6% during the fourth quarter. State Street Corp now owns 47,896,597 shares of the information technology services provider’s stock valued at $7,337,280,000 after purchasing an additional 38,441,898 shares in the last quarter. Price T Rowe Associates Inc. MD increased its stake in ServiceNow by 371.0% in the 4th quarter. Price T Rowe Associates Inc. MD now owns 32,395,663 shares of the information technology services provider’s stock valued at $4,962,692,000 after buying an additional 25,517,218 shares during the period. Finally, Geode Capital Management LLC increased its stake in ServiceNow by 404.8% in the 4th quarter. Geode Capital Management LLC now owns 23,512,428 shares of the information technology services provider’s stock valued at $3,591,425,000 after buying an additional 18,854,775 shares during the period. Hedge funds and other institutional investors 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.