ServiceNow (NYSE:NOW) Shares Down 6.6% After Analyst Downgrade

ServiceNow, Inc. (NYSE:NOW)’s share price dropped 6.6% on Thursday after StockNews.com downgraded the stock from a buy rating to a hold rating. The stock 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.

NOW has been the topic of several other research reports. Morgan Stanley upped their price target on shares of ServiceNow from $814.00 to $830.00 and gave the stock an “overweight” rating in a report on Thursday. Barclays upped their price target on shares of ServiceNow from $765.00 to $870.00 and gave the stock an “overweight” rating in a report on Tuesday, January 23rd. The Goldman Sachs Group upped their price target on shares of ServiceNow from $800.00 to $910.00 and gave the stock a “buy” rating in a report on Thursday, January 25th. Mizuho upped their price target on shares of ServiceNow from $750.00 to $820.00 and gave the stock a “buy” rating in a report on Thursday, January 25th. Finally, Truist Financial raised their price target on ServiceNow from $700.00 to $750.00 and gave the company a “hold” rating in a research report on Thursday, January 25th. Four equities research analysts have rated the stock with a hold rating and twenty-two have assigned a buy rating to the company. According to data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and an average target price of $782.85.

Insider Buying and Selling

In other ServiceNow news, insider Paul John Smith sold 5,159 shares of ServiceNow stock in a transaction that occurred on Tuesday, February 20th. The stock was sold at an average price of $745.32, for a total transaction of $3,845,105.88. Following the sale, the insider now directly owns 5,453 shares of the company’s stock, valued at approximately $4,064,229.96. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. In other news, CEO William R. Mcdermott sold 5,030 shares of the business’s stock in a transaction that occurred on Tuesday, February 20th. The stock was sold at an average price of $753.08, for a total value of $3,787,992.40. Following the sale, the chief executive officer now directly owns 17,177 shares of the company’s stock, valued at approximately $12,935,655.16. The sale was disclosed in a legal filing with the SEC, which is accessible through the SEC website. Also, insider Paul John Smith sold 5,159 shares of the business’s stock in a transaction that occurred on Tuesday, February 20th. The stock was sold at an average price of $745.32, for a total transaction of $3,845,105.88. Following the completion of the transaction, the insider now owns 5,453 shares of the company’s stock, valued at $4,064,229.96. The disclosure for this sale can be found here. Insiders have sold 13,164 shares of company stock valued at $9,940,303 over the last ninety days. 0.25% of the stock is owned by insiders.

Hedge Funds Weigh In On ServiceNow

A number of hedge funds have recently added to or reduced their stakes in NOW. PFG Private Wealth Management LLC purchased a new stake in shares of ServiceNow in the 3rd quarter worth $28,000. University of Texas Texas AM Investment Managment Co. purchased a new stake in shares of ServiceNow during the 4th quarter valued at about $29,000. AdvisorNet Financial Inc raised its position in shares of ServiceNow by 266.7% during the 4th quarter. AdvisorNet Financial Inc now owns 44 shares of the information technology services provider’s stock valued at $31,000 after buying an additional 32 shares in the last quarter. Steward Financial Group LLC raised its position in shares of ServiceNow by 125.0% during the 3rd quarter. Steward Financial Group LLC now owns 63 shares of the information technology services provider’s stock valued at $35,000 after buying an additional 35 shares in the last quarter. Finally, Princeton Global Asset Management LLC purchased a new stake in shares of ServiceNow during the 3rd quarter valued at about $35,000. 87.18% of the stock is currently owned by hedge funds and other institutional investors.

ServiceNow Price Performance

The company has a current ratio of 1.06, a quick ratio of 1.06 and a debt-to-equity ratio of 0.20. The company has a market capitalization of $148.48 billion, a PE ratio of 77.32, a price-to-earnings-growth ratio of 4.72 and a beta of 0.97. The stock’s 50-day moving average is $759.21 and its two-hundred day moving average is $707.90.

ServiceNow (NYSE:NOW) last issued its earnings results 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 for the quarter, compared to analyst estimates of $2.40 billion. ServiceNow had a net margin of 20.34% and a return on equity of 14.00%. The company’s quarterly revenue was up 25.6% compared to the same quarter last year. During the same period last year, the company posted $0.88 earnings per share. On average, equities analysts predict that ServiceNow, Inc. will post 6.16 EPS for the current year.

ServiceNow Company Profile

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.