ServiceNow (NYSE:NOW) Trading Up 408.8% – Should You Buy?

ServiceNow, Inc. (NYSE:NOW)’s stock price rose 408.8% on Friday . The company traded as high as $861.50 and last traded at $853.6620. Approximately 1,276,855 shares changed hands during trading, a decline of 84% from the average daily volume of 8,125,606 shares. The stock had previously closed at $167.77.

Analyst Upgrades and Downgrades

A number of analysts have issued reports on the company. Royal Bank Of Canada reissued an “outperform” rating and issued a $240.00 target price on shares of ServiceNow in a research report on Thursday, October 30th. Morgan Stanley set a $263.00 price objective on ServiceNow and gave the company an “overweight” rating in a research note on Thursday, October 30th. Macquarie began coverage on ServiceNow in a report on Tuesday, November 25th. They issued a “neutral” rating and a $172.00 price objective on the stock. Stifel Nicolaus set a $230.00 target price on ServiceNow in a research note on Thursday, October 30th. Finally, Sanford C. Bernstein reaffirmed an “outperform” rating and issued a $218.60 target price on shares of ServiceNow in a research report on Thursday, October 30th. One equities research analyst has rated the stock with a Strong Buy rating, thirty-one have issued a Buy rating, five have assigned a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $229.93.

ServiceNow Stock Performance

The stock has a market capitalization of $177.56 billion, a PE ratio of 103.22, a price-to-earnings-growth ratio of 3.48 and a beta of 0.97. The company has a quick ratio of 1.06, a current ratio of 1.06 and a debt-to-equity ratio of 0.13. The stock has a fifty day moving average of $881.34 and a 200-day moving average of $932.54.

ServiceNow (NYSE:NOW) last issued its quarterly earnings results on Wednesday, October 29th. The information technology services provider reported $0.96 earnings per share for the quarter, topping the consensus estimate of $0.84 by $0.12. The company had revenue of $3.41 billion for the quarter, compared to the consensus estimate of $3.35 billion. ServiceNow had a return on equity of 18.74% and a net margin of 13.66%.ServiceNow’s revenue was up 21.8% on a year-over-year basis. During the same quarter in the prior year, the business earned $0.74 EPS. Equities analysts anticipate that ServiceNow, Inc. will post 8.93 earnings per share for the current fiscal year.

Insider Activity

In other ServiceNow news, CFO Gina Mastantuono sold 2,085 shares of the stock in a transaction that occurred on Friday, November 28th. The shares were sold at an average price of $161.60, for a total value of $336,936.00. Following the sale, the chief financial officer directly owned 63,215 shares of the company’s stock, valued at approximately $10,215,544. This represents a 3.19% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this link. Also, insider Paul Fipps sold 1,525 shares of the firm’s stock in a transaction on Tuesday, November 18th. The shares were sold at an average price of $163.51, for a total transaction of $249,352.75. Following the completion of the sale, the insider owned 2,705 shares in the company, valued at $442,294.55. The trade was a 36.05% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last three months, insiders sold 13,235 shares of company stock valued at $2,180,835. 0.34% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On ServiceNow

Large investors have recently bought and sold shares of the business. Saranac Partners Ltd purchased a new stake in ServiceNow during the 3rd quarter worth about $4,030,000. IFP Advisors Inc increased its holdings in shares of ServiceNow by 2.4% in the 3rd quarter. IFP Advisors Inc now owns 4,910 shares of the information technology services provider’s stock valued at $4,519,000 after acquiring an additional 113 shares during the last quarter. Swiss Life Asset Management Ltd increased its holdings in shares of ServiceNow by 5.8% in the 3rd quarter. Swiss Life Asset Management Ltd now owns 83,363 shares of the information technology services provider’s stock valued at $76,717,000 after acquiring an additional 4,565 shares during the last quarter. Cambria Investment Management L.P. acquired a new stake in shares of ServiceNow during the 3rd quarter worth about $359,000. Finally, Opes Wealth Management LLC lifted its stake in ServiceNow by 3.5% during the third quarter. Opes Wealth Management LLC now owns 507 shares of the information technology services provider’s stock worth $467,000 after purchasing an additional 17 shares during the last quarter. Hedge funds and other institutional investors own 87.18% of the company’s stock.

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.