ServiceNow (NYSE:NOW) Stock Price Down 3.7% – Should You Sell?

ServiceNow, Inc. (NYSE:NOW)’s stock price was down 3.7% during mid-day trading on Thursday . The company traded as low as $809.18 and last traded at $813.08. Approximately 323,511 shares changed hands during trading, a decline of 76% from the average daily volume of 1,332,974 shares. The stock had previously closed at $844.12.

Analyst Ratings Changes

A number of equities research analysts have recently issued reports on NOW shares. Mizuho dropped their price objective on ServiceNow from $1,210.00 to $1,100.00 and set an “outperform” rating on the stock in a research note on Tuesday, March 11th. JMP Securities restated a “market outperform” rating and issued a $1,300.00 price target on shares of ServiceNow in a research note on Thursday, January 30th. Redburn Atlantic began coverage on ServiceNow in a report on Wednesday, February 19th. They issued a “buy” rating for the company. Royal Bank of Canada set a $986.00 price objective on ServiceNow in a research report on Tuesday, March 11th. Finally, Citigroup lowered their target price on ServiceNow from $1,432.00 to $1,426.00 and set a “buy” rating for the company in a report on Tuesday, February 4th. One investment analyst has rated the stock with a sell rating, four have assigned a hold rating and twenty-seven have issued a buy rating to the company. Based on data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and a consensus price target of $1,100.31.

ServiceNow Stock Down 2.5 %

The company has a debt-to-equity ratio of 0.15, a current ratio of 1.10 and a quick ratio of 1.10. The firm has a 50 day moving average of $979.74 and a 200-day moving average of $984.61. The stock has a market capitalization of $169.58 billion, a P/E ratio of 120.52, a price-to-earnings-growth ratio of 4.51 and a beta of 1.03.

ServiceNow (NYSE:NOW) last released its earnings results on Wednesday, January 29th. The information technology services provider reported $3.67 earnings per share for the quarter, hitting analysts’ consensus estimates of $3.67. ServiceNow had a return on equity of 17.11% and a net margin of 12.97%. On average, equities research analysts expect that ServiceNow, Inc. will post 8.93 earnings per share for the current fiscal year.

ServiceNow declared that its Board of Directors has authorized a stock buyback plan on Wednesday, January 29th that authorizes the company to repurchase $3.00 billion in shares. This repurchase authorization authorizes the information technology services provider to repurchase up to 1.3% of its shares through open market purchases. Shares repurchase plans are generally a sign that the company’s board of directors believes its shares are undervalued.

Insider Buying and Selling

In other ServiceNow news, insider Jacqueline P. Canney sold 292 shares of the stock in a transaction dated Monday, February 10th. The shares were sold at an average price of $1,017.55, for a total value of $297,124.60. Following the completion of the sale, the insider now owns 3,027 shares in the company, valued at approximately $3,080,123.85. This trade represents a 8.80 % decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, General Counsel Russell S. Elmer sold 336 shares of the business’s stock in a transaction dated Monday, February 10th. The shares were sold at an average price of $1,017.55, for a total value of $341,896.80. Following the completion of the sale, the general counsel now owns 4,332 shares in the company, valued at $4,408,026.60. This represents a 7.20 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 20,351 shares of company stock worth $20,050,076 in the last ninety days. 0.25% of the stock is owned by insiders.

Hedge Funds Weigh In On ServiceNow

Institutional investors and hedge funds have recently made changes to their positions in the business. United Bank bought a new position in shares of ServiceNow in the third quarter worth approximately $480,000. Caprock Group LLC increased its stake in shares of ServiceNow by 4.6% during the third quarter. Caprock Group LLC now owns 4,177 shares of the information technology services provider’s stock valued at $3,737,000 after buying an additional 183 shares during the period. OneAscent Financial Services LLC bought a new position in ServiceNow in the third quarter worth about $204,000. Meeder Asset Management Inc. raised its holdings in shares of ServiceNow by 24.7% in the third quarter. Meeder Asset Management Inc. now owns 121 shares of the information technology services provider’s stock worth $108,000 after buying an additional 24 shares during the last quarter. Finally, PNC Financial Services Group Inc. increased its holdings in shares of ServiceNow by 4.6% in the third quarter. PNC Financial Services Group Inc. now owns 202,085 shares of the information technology services provider’s stock valued at $180,743,000 after purchasing an additional 8,967 shares during the period. Institutional investors own 87.18% of the company’s stock.

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.