ServiceNow (NYSE:NOW) Trading Down 6.6% on Analyst Downgrade

ServiceNow, Inc. (NYSE:NOW)’s share price was down 6.6% on Thursday after UBS Group lowered their price target on the stock from $920.00 to $875.00. UBS Group currently has a buy rating on the stock. ServiceNow traded as low as $689.00 and last traded at $696.86. Approximately 1,380,634 shares were traded during mid-day trading, an increase of 16% from the average daily volume of 1,187,097 shares. The stock had previously closed at $746.29.

A number of other equities analysts also recently issued reports on the company. JMP Securities reiterated a “market outperform” rating and set a $825.00 price target on shares of ServiceNow in a research report on Tuesday. Oppenheimer lifted their price target on shares of ServiceNow from $750.00 to $800.00 and gave the company an “outperform” rating in a research note on Thursday, January 18th. Barclays upped their price objective on shares of ServiceNow from $765.00 to $870.00 and gave the stock an “overweight” rating in a research report on Tuesday, January 23rd. The Goldman Sachs Group boosted their target price on shares of ServiceNow from $800.00 to $910.00 and gave the stock a “buy” rating in a research note on Thursday, January 25th. Finally, Needham & Company LLC restated a “buy” rating and set a $900.00 price target on shares of ServiceNow in a research report on Thursday. Three research analysts have rated the stock with a hold rating and twenty-three have assigned a buy rating to the company. According to data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average price target of $777.96.

Insider Buying and Selling

In other ServiceNow news, insider Paul John Smith sold 1,180 shares of the stock in a transaction dated Tuesday, February 13th. The shares were sold at an average price of $767.12, for a total transaction of $905,201.60. Following the completion of the transaction, the insider now owns 1,392 shares of the company’s stock, valued at $1,067,831.04. The sale was disclosed in a legal filing with the SEC, which is available at this link. In related news, CEO William R. Mcdermott sold 5,030 shares of the stock in a transaction dated Tuesday, February 20th. The stock was sold at an average price of $753.08, for a total transaction of $3,787,992.40. Following the transaction, the chief executive officer now owns 17,177 shares of the company’s stock, valued at approximately $12,935,655.16. The transaction was disclosed in a filing with the SEC, which is available through this hyperlink. Also, insider Paul John Smith sold 1,180 shares of the firm’s stock in a transaction dated Tuesday, February 13th. The shares were sold at an average price of $767.12, for a total value of $905,201.60. Following the transaction, the insider now owns 1,392 shares of the company’s stock, valued at $1,067,831.04. The disclosure for this sale can be found here. In the last ninety days, insiders sold 13,164 shares of company stock valued at $9,940,303. 0.25% of the stock is currently owned by insiders.

Institutional Trading of ServiceNow

Hedge funds have recently made changes to their positions in the business. PFG Private Wealth Management LLC purchased a new stake in ServiceNow during the 3rd quarter worth approximately $28,000. University of Texas Texas AM Investment Managment Co. acquired a new position in shares of ServiceNow in the fourth quarter worth $29,000. AdvisorNet Financial Inc increased its position in shares of ServiceNow by 266.7% during the fourth quarter. AdvisorNet Financial Inc now owns 44 shares of the information technology services provider’s stock worth $31,000 after acquiring an additional 32 shares during the period. Steward Financial Group LLC raised its stake in shares of ServiceNow by 125.0% in the third quarter. Steward Financial Group LLC now owns 63 shares of the information technology services provider’s stock valued at $35,000 after acquiring an additional 35 shares in the last quarter. Finally, Princeton Global Asset Management LLC purchased a new position in ServiceNow in the third quarter valued at $35,000. Institutional investors and hedge funds own 87.18% of the company’s stock.

ServiceNow Price Performance

The company has a 50 day moving average of $761.32 and a 200 day moving average of $706.74. The company has a debt-to-equity ratio of 0.20, a quick ratio of 1.06 and a current ratio of 1.06. The stock has a market capitalization of $144.67 billion, a price-to-earnings ratio of 83.68, a PEG ratio of 4.68 and a beta of 0.97.

ServiceNow (NYSE:NOW) last announced its quarterly earnings data on Wednesday, January 24th. The information technology services provider reported $3.11 EPS for the quarter, topping analysts’ consensus estimates of $2.77 by $0.34. The business had revenue of $2.44 billion during the quarter, compared to the consensus estimate of $2.40 billion. ServiceNow had a return on equity of 11.85% and a net margin of 19.30%. The business’s revenue for the quarter was up 25.6% on a year-over-year basis. During the same period in the previous year, the company posted $0.88 earnings per share. As a group, equities research analysts anticipate that ServiceNow, Inc. will post 6.16 EPS for the current year.

About ServiceNow

ServiceNow, Inc provides end to-end intelligent workflow automation platform solutions for digital businesses in the North America, Europe, the Middle East and Africa, Asia Pacific, and internationally. The company operates the Now platform for end-to-end digital transformation, artificial intelligence, machine learning, robotic process automation, process mining, performance analytics, and collaboration and development tools.