ServiceNow (NYSE:NOW) Stock Falls 3.3% After Insider Selling

ServiceNow, Inc. (NYSE:NOW)’s share price dropped 3.3% during mid-day trading on Tuesday following insider selling activity. The stock traded as low as $97.00 and last traded at $99.3530. Approximately 18,668,973 shares were traded during trading, a decline of 13% from the average daily volume of 21,554,979 shares. The stock had previously closed at $102.76.

Specifically, insider Jacqueline Canney sold 1,289 shares of the business’s stock in a transaction on Monday, November 9th. The stock was sold at an average price of $101.70, for a total value of $131,091.30. Following the completion of the transaction, the insider directly owned 30,042 shares of the company’s stock, valued at approximately $3,055,271.40. The trade was a 4.11% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards.

Wall Street Analyst Weigh In

Several equities analysts recently commented on the stock. Barclays set a $152.00 price objective on shares of ServiceNow and gave the company an “overweight” rating in a research report on Thursday, October 29th. Canaccord Genuity Group set a $145.00 target price on ServiceNow in a report on Thursday, October 29th. Benchmark reaffirmed a “buy” rating on shares of ServiceNow in a report on Friday, July 17th. Citigroup decreased their price objective on shares of ServiceNow from $170.00 to $157.00 and set a “buy” rating for the company in a research report on Thursday, October 29th. Finally, Oppenheimer reissued an “outperform” rating and set a $165.00 target price on shares of ServiceNow in a research note on Thursday, October 29th. One research analyst has rated the stock with a Strong Buy rating, thirty-six have issued a Buy rating, three have assigned a Hold rating and three have issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus target price of $154.50.

Key Headlines Impacting ServiceNow

These are some of the NOW headlines that stood out recently:

• Neutral Sentiment: LicenseFortress added ServiceNow licensing and software-asset-management advisory services. This is a third-party service expansion, not a new ServiceNow product or contract, so any effect on NOW is unclear. LicenseFortress expands ServiceNow services
• Negative Sentiment: Pomerantz is investigating potential investor claims involving ServiceNow. The notice provides no finding of wrongdoing, but the investigation may add uncertainty and has been reported repeatedly this week. Pomerantz investigation notice
• Negative Sentiment: Recent coverage highlights a 29% monthly share decline and lingering concerns after quarterly EPS slightly missed estimates, despite revenue topping forecasts and growing 20.5% year over year. Broad weakness in technology stocks may also be weighing on sentiment. ServiceNow’s recent share decline

ServiceNow Price Performance

The stock has a fifty day simple moving average of $133.69 and a 200-day simple moving average of $114.40. The company has a current ratio of 0.72, a quick ratio of 0.72 and a debt-to-equity ratio of 0.42. The company has a market capitalization of $104.47 billion, a PE ratio of 72.41, a P/E/G ratio of 1.95 and a beta of 1.00.

ServiceNow (NYSE:NOW) last announced its earnings results on Wednesday, October 28th. The information technology services provider reported $1.00 EPS for the quarter, missing analysts’ consensus estimates of $1.02 by ($0.02). The business had revenue of $4.11 billion during the quarter, compared to analyst estimates of $4.09 billion. ServiceNow had a net margin of 9.36% and a return on equity of 15.17%. The business’s revenue was up 20.5% compared to the same quarter last year. During the same period in the previous year, the firm earned $4.82 earnings per share. Equities analysts anticipate that ServiceNow, Inc. will post 2.12 earnings per share for the current year.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently modified their holdings of NOW. Cornerstone Financial Management LLC increased its position in shares of ServiceNow by 72.8% during the second quarter. Cornerstone Financial Management LLC now owns 254 shares of the information technology services provider’s stock worth $25,000 after acquiring an additional 107 shares during the last quarter. Pathway Financial Advisers LLC bought a new stake in ServiceNow during the third quarter valued at $38,000. Marquette Asset Management LLC lifted its holdings in ServiceNow by 75.0% in the second quarter. Marquette Asset Management LLC now owns 301 shares of the information technology services provider’s stock worth $30,000 after acquiring an additional 129 shares during the last quarter. Kilter Group LLC bought a new position in ServiceNow during the 2nd quarter worth $31,000. Finally, Solstein Capital LLC bought a new stake in ServiceNow in the second quarter valued at $35,000. Institutional investors and hedge funds own 87.18% of the company’s stock.

About ServiceNow

ServiceNow, Inc. provides cloud-based software that helps organizations manage digital workflows and automate business processes. Founded in 2004 by Fred Luddy, the company began with a focus on IT service management and has expanded its platform to support a range of enterprise operations. Its products include tools for IT service and operations management, customer service, human resources, security, and application development. ServiceNow also offers artificial intelligence capabilities, including tools designed to help organizations automate tasks and find information across workflows.