ServiceNow (NYSE:NOW) Shares Down 5% – Here’s Why

ServiceNow, Inc. (NYSE:NOW)’s stock price was down 5% during mid-day trading on Tuesday . The stock traded as low as $132.46 and last traded at $134.2110. 14,522,152 shares traded hands during trading, a decline of 37% from the average daily volume of 23,230,377 shares. The stock had previously closed at $141.26.

Analyst Upgrades and Downgrades

Several brokerages have recently commented on NOW. Jefferies Financial Group reiterated a “buy” rating and set a $140.00 price target (up from $135.00) on shares of ServiceNow in a research report on Thursday, July 23rd. CLSA initiated coverage on ServiceNow in a research note on Monday, July 20th. They issued an “underperform” rating and a $72.00 price target for the company. Guggenheim raised shares of ServiceNow from a “neutral” rating to a “buy” rating and set a $125.00 price objective on the stock in a research note on Wednesday, July 1st. Royal Bank Of Canada restated an “outperform” rating and set a $130.00 price objective on shares of ServiceNow in a report on Thursday, July 23rd. Finally, Bank of America increased their target price on shares of ServiceNow from $130.00 to $150.00 and gave the stock a “buy” rating in a report on Wednesday, August 19th. One investment analyst has rated the stock with a Strong Buy rating, thirty-six have issued a Buy rating, three have assigned a Hold rating and two have given a Sell rating to the company. According to MarketBeat, the company presently has a consensus rating of “Moderate Buy” and a consensus target price of $144.73.

ServiceNow Trading Down 5.0%

The company has a quick ratio of 0.70, a current ratio of 0.70 and a debt-to-equity ratio of 0.43. The company has a market capitalization of $138.77 billion, a P/E ratio of 83.88, a price-to-earnings-growth ratio of 2.57 and a beta of 0.97. The business has a fifty day moving average price of $118.03 and a 200 day moving average price of $108.20.

ServiceNow (NYSE:NOW) last announced 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. ServiceNow had a return on equity of 16.45% and a net margin of 11.34%.The business had revenue of $3.99 billion for the quarter, compared to analyst estimates of $3.93 billion. During the same quarter last year, the firm earned $0.81 EPS. ServiceNow’s revenue for the quarter was up 24.0% compared to the same quarter last year. On average, analysts expect that ServiceNow, Inc. will post 2.24 earnings per share for the current fiscal year.

Insider Transactions at ServiceNow

In other ServiceNow news, insider Jacqueline P. Canney sold 7,847 shares of ServiceNow stock in a transaction on Friday, August 28th. The shares were sold at an average price of $138.00, for a total value of $1,082,886.00. Following the sale, the insider directly owned 30,042 shares in the company, valued at approximately $4,145,796. The trade was a 20.71% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Paul Chamberlain sold 2,700 shares of the stock in a transaction dated Thursday, August 27th. The stock was sold at an average price of $135.50, for a total transaction of $365,850.00. Following the transaction, the director owned 43,990 shares of the company’s stock, valued at approximately $5,960,645. This represents a 5.78% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 14,081 shares of company stock valued at $1,937,904 over the last 90 days. 0.34% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Large investors have recently bought and sold shares of the stock. California State Teachers Retirement System increased its position in shares of ServiceNow by 9,980.9% during the 2nd quarter. California State Teachers Retirement System now owns 154,496,061 shares of the information technology services provider’s stock worth $15,338,369,000 after purchasing an additional 152,963,494 shares during the last quarter. BlackRock Inc. acquired a new stake in shares of ServiceNow in the 2nd quarter valued at approximately $9,536,615,000. State Street Corp grew its stake in shares of ServiceNow by 406.6% in 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 buying an additional 38,441,898 shares in the last quarter. Price T Rowe Associates Inc. MD grew its stake in shares of ServiceNow by 371.0% in the fourth 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 in the last quarter. Finally, Geode Capital Management LLC increased its holdings in ServiceNow by 404.8% during the fourth quarter. Geode Capital Management LLC now owns 23,512,428 shares of the information technology services provider’s stock worth $3,591,425,000 after buying an additional 18,854,775 shares during the last quarter. 87.18% of the stock is owned by institutional investors and hedge funds.

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.