ServiceNow (NYSE:NOW) Shares Down 1.9% – Should You Sell?

Shares of ServiceNow, Inc. (NYSE:NOW) traded down 1.9% during mid-day trading on Monday . The company traded as low as $121.29 and last traded at $122.0360. 20,257,393 shares traded hands during mid-day trading, an increase of 1% from the average session volume of 20,060,326 shares. The stock had previously closed at $124.34.

Wall Street Analysts Forecast Growth

A number of equities analysts have recently weighed in on the stock. Capital One Financial dropped their price target on shares of ServiceNow from $188.00 to $161.00 and set an “overweight” rating on the stock in a research note on Friday, January 16th. DA Davidson reaffirmed a “buy” rating and set a $220.00 price target on shares of ServiceNow in a research note on Thursday, January 29th. Wall Street Zen cut ServiceNow from a “buy” rating to a “hold” rating in a research note on Saturday, February 28th. Stifel Nicolaus set a $180.00 price objective on shares of ServiceNow and gave the company a “buy” rating in a research report on Thursday, January 29th. Finally, Truist Financial set a $175.00 target price on shares of ServiceNow in a research report on Thursday, February 5th. Three analysts have rated the stock with a Strong Buy rating, thirty-one have assigned a Buy rating, six have given a Hold rating and two have given a Sell rating to the stock. According to data from MarketBeat, the stock has an average rating of “Moderate Buy” and a consensus target price of $192.06.

ServiceNow Stock Performance

The stock’s 50-day moving average price is $122.89 and its 200 day moving average price is $157.18. The company has a quick ratio of 1.00, a current ratio of 1.00 and a debt-to-equity ratio of 0.12. The company has a market cap of $127.65 billion, a P/E ratio of 73.16, a price-to-earnings-growth ratio of 2.10 and a beta of 0.99.

ServiceNow (NYSE:NOW) last posted its earnings results on Wednesday, January 28th. The information technology services provider reported $0.92 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.89 by $0.03. The business had revenue of $3.57 billion for the quarter, compared to analyst estimates of $3.53 billion. ServiceNow had a net margin of 13.16% and a return on equity of 18.54%. ServiceNow’s revenue was up 20.7% compared to the same quarter last year. During the same period last year, the business posted $0.73 EPS. As a group, research analysts expect that ServiceNow, Inc. will post 8.93 EPS for the current fiscal year.

Insider Activity at ServiceNow

In related news, insider Paul Fipps sold 3,696 shares of the business’s stock in a transaction on Monday, February 23rd. The shares were sold at an average price of $101.77, for a total transaction of $376,141.92. Following the transaction, the insider owned 8,061 shares of the company’s stock, valued at approximately $820,367.97. The trade was a 31.44% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, Director Paul Edward Chamberlain sold 1,500 shares of the stock in a transaction on Thursday, February 12th. The shares were sold at an average price of $101.17, for a total transaction of $151,755.00. Following the completion of the sale, the director directly owned 46,430 shares of the company’s stock, valued at approximately $4,697,323.10. This trade represents a 3.13% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 16,237 shares of company stock worth $1,697,162 in the last 90 days. 0.34% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Large investors have recently made changes to their positions in the stock. Brady Martz Wealth Solutions LLC grew its position in shares of ServiceNow by 1.3% in the 3rd quarter. Brady Martz Wealth Solutions LLC now owns 842 shares of the information technology services provider’s stock worth $775,000 after buying an additional 11 shares during the last quarter. Magnus Financial Group LLC lifted its position in ServiceNow by 1.9% during the third quarter. Magnus Financial Group LLC now owns 589 shares of the information technology services provider’s stock valued at $542,000 after acquiring an additional 11 shares during the last quarter. Avidian Wealth Enterprises LLC boosted its stake in ServiceNow by 2.5% in the third quarter. Avidian Wealth Enterprises LLC now owns 453 shares of the information technology services provider’s stock valued at $417,000 after acquiring an additional 11 shares in the last quarter. Regatta Capital Group LLC boosted its stake in ServiceNow by 1.9% in the third quarter. Regatta Capital Group LLC now owns 633 shares of the information technology services provider’s stock valued at $583,000 after acquiring an additional 12 shares in the last quarter. Finally, Traveka Wealth LLC grew its holdings in ServiceNow by 3.8% in the third quarter. Traveka Wealth LLC now owns 330 shares of the information technology services provider’s stock worth $304,000 after purchasing an additional 12 shares during the last quarter. Institutional investors and hedge funds own 87.18% of the company’s stock.

ServiceNow Company Profile

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.