ServiceNow (NYSE:NOW) Shares Down 2.1% Following Analyst Downgrade

by · The Cerbat Gem

ServiceNow, Inc. (NYSE:NOW – Get Free Report) shares traded down 2.1% on Tuesday after Wall Street Zen downgraded the stock from a buy rating to a hold rating. The company traded as low as $811.61 and last traded at $818.1020. 1,520,946 shares traded hands during mid-day trading, a decline of 7% from the average session volume of 1,640,260 shares. The stock had previously closed at $835.79.

A number of other analysts have also weighed in on NOW. Cantor Fitzgerald restated an “overweight” rating and issued a $1,200.00 target price on shares of ServiceNow in a research report on Monday, October 27th. Morgan Stanley set a $1,315.00 price objective on ServiceNow and gave the company an “overweight” rating in a report on Thursday, October 30th. Piper Sandler restated an “overweight” rating and set a $1,150.00 price objective on shares of ServiceNow in a research report on Thursday, October 30th. Cowen reiterated a “buy” rating on shares of ServiceNow in a research report on Friday, October 24th. Finally, The Goldman Sachs Group reissued a “buy” rating and set a $1,250.00 price target on shares of ServiceNow in a research note on Thursday, October 30th. One research analyst has rated the stock with a Strong Buy rating, thirty-one have given a Buy rating, four have given a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, the stock presently has an average rating of “Moderate Buy” and an average price target of $1,159.66.

Get Our Latest Research Report on ServiceNow

Insider Transactions at ServiceNow

In other news, Director Anita M. Sands sold 1,097 shares of the stock in a transaction dated Friday, August 29th. The stock was sold at an average price of $915.11, for a total value of $1,003,875.67. Following the completion of the sale, the director owned 9,307 shares of the company’s stock, valued at approximately $8,516,928.77. This represents a 10.54% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, insider Jacqueline P. Canney sold 66 shares of the firm’s stock in a transaction dated Thursday, November 13th. The stock was sold at an average price of $852.38, for a total value of $56,257.08. Following the transaction, the insider owned 3,027 shares of the company’s stock, valued at $2,580,154.26. This trade represents a 2.13% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last three months, insiders have sold 10,200 shares of company stock worth $9,253,436. 0.38% of the stock is currently owned by insiders.

Institutional Investors Weigh In On ServiceNow

Institutional investors have recently modified their holdings of the company. Norges Bank acquired a new stake in ServiceNow during the 2nd quarter worth about $2,589,235,000. Nuveen LLC acquired a new position in shares of ServiceNow in the 1st quarter valued at about $1,817,535,000. Goldman Sachs Group Inc. boosted its position in shares of ServiceNow by 131.4% during the 1st quarter. Goldman Sachs Group Inc. now owns 1,480,526 shares of the information technology services provider’s stock valued at $1,178,706,000 after purchasing an additional 840,731 shares in the last quarter. Parnassus Investments LLC bought a new stake in shares of ServiceNow during the 1st quarter valued at about $519,806,000. Finally, Amundi grew its stake in ServiceNow by 61.9% during the first quarter. Amundi now owns 1,638,927 shares of the information technology services provider’s stock worth $1,269,777,000 after purchasing an additional 626,623 shares during the period. 87.18% of the stock is owned by institutional investors.

ServiceNow Stock Performance

The company has a debt-to-equity ratio of 0.14, a current ratio of 1.09 and a quick ratio of 1.09. The stock has a fifty day simple moving average of $912.89 and a two-hundred day simple moving average of $948.48. The firm has a market capitalization of $170.17 billion, a P/E ratio of 98.92, a P/E/G ratio of 4.11 and a beta of 0.94.

ServiceNow’s stock is set to split before the market opens on Friday, December 5th. The 5-1 split was announced on Wednesday, October 29th. The newly issued shares will be payable to shareholders after the closing bell on Thursday, December 4th.

ServiceNow (NYSE:NOW – Get Free Report) last released its quarterly earnings data on Wednesday, October 29th. The information technology services provider reported $4.82 earnings per share for the quarter, beating the consensus estimate of $4.21 by $0.61. ServiceNow had a net margin of 13.66% and a return on equity of 19.23%. The company had revenue of $3.41 billion during the quarter, compared to analyst estimates of $3.35 billion. During the same quarter in the previous year, the business posted $3.72 EPS. ServiceNow’s revenue for the quarter was up 21.8% compared to the same quarter last year. On average, research analysts predict that ServiceNow, Inc. will post 8.93 EPS for the current year.

ServiceNow Company Profile

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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.

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