ServiceNow (NYSE:NOW) Trading 1.8% Higher – Should You Buy?

ServiceNow, Inc. (NYSE:NOW) shares traded up 1.8% during mid-day trading on Monday . The company traded as high as $115.36 and last traded at $114.4320. 19,532,361 shares were traded during trading, a decline of 18% from the average session volume of 23,919,016 shares. The stock had previously closed at $112.45.

Analyst Ratings Changes

A number of equities analysts have recently issued reports on the company. DA Davidson restated a “buy” rating and set a $190.00 price objective on shares of ServiceNow in a research report on Tuesday, May 5th. Citigroup raised their price objective on ServiceNow from $154.00 to $158.00 and gave the stock a “buy” rating in a research report on Thursday, April 30th. The Goldman Sachs Group lowered their price objective on ServiceNow from $188.00 to $163.00 and set a “buy” rating for the company in a research report on Thursday, April 23rd. Argus lowered their price objective on ServiceNow from $180.00 to $134.00 and set a “buy” rating for the company in a research report on Friday, April 24th. Finally, Truist Financial lowered their price objective on ServiceNow from $125.00 to $120.00 and set a “buy” rating for the company in a research report on Thursday, April 23rd. Two equities research analysts have rated the stock with a Strong Buy rating, thirty-five have assigned a Buy rating, five have issued a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat, ServiceNow currently has a consensus rating of “Moderate Buy” and an average price target of $141.85.

ServiceNow Stock Up 1.8%

The firm has a 50 day moving average of $99.48 and a 200 day moving average of $121.71. The firm has a market cap of $117.98 billion, a price-to-earnings ratio of 68.20, a PEG ratio of 1.86 and a beta of 0.94. The company has a quick ratio of 0.84, a current ratio of 0.84 and a debt-to-equity ratio of 0.13.

ServiceNow (NYSE:NOW) last released its earnings results on Wednesday, April 22nd. The information technology services provider reported $0.97 EPS for the quarter, hitting the consensus estimate of $0.97. ServiceNow had a return on equity of 18.16% and a net margin of 12.59%.The business had revenue of $3.77 billion during the quarter, compared to analysts’ expectations of $3.75 billion. During the same quarter last year, the firm posted $0.81 earnings per share. The firm’s revenue was up 22.1% on a year-over-year basis. As a group, sell-side analysts predict that ServiceNow, Inc. will post 2.35 earnings per share for the current year.

Insiders Place Their Bets

In related news, insider Paul Fipps sold 1,048 shares of the firm’s stock in a transaction that occurred on Monday, May 18th. The stock was sold at an average price of $98.51, for a total transaction of $103,238.48. Following the completion of the sale, the insider owned 12,072 shares of the company’s stock, valued at $1,189,212.72. This trade represents a 7.99% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. 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. Also, Director Anita M. Sands sold 16,445 shares of the firm’s stock in a transaction that occurred on Thursday, May 14th. The stock was sold at an average price of $90.14, for a total value of $1,482,352.30. Following the sale, the director directly owned 30,090 shares of the company’s stock, valued at $2,712,312.60. This represents a 35.34% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last ninety days, insiders sold 28,071 shares of company stock worth $2,529,956. Company insiders own 0.34% of the company’s stock.

Institutional Investors Weigh In On ServiceNow

Hedge funds have recently added to or reduced their stakes in the company. IAG Wealth Partners LLC grew its stake in ServiceNow by 200.0% in the third quarter. IAG Wealth Partners LLC now owns 27 shares of the information technology services provider’s stock valued at $25,000 after acquiring an additional 18 shares during the period. Wealth Watch Advisors INC acquired a new stake in ServiceNow in the third quarter valued at approximately $29,000. Texas Capital Bancshares Inc TX acquired a new stake in ServiceNow in the third quarter valued at approximately $37,000. Ameriflex Group Inc. grew its stake in ServiceNow by 187.5% in the third quarter. Ameriflex Group Inc. now owns 46 shares of the information technology services provider’s stock valued at $42,000 after acquiring an additional 30 shares during the period. Finally, Kelleher Financial Advisors acquired a new stake in ServiceNow in the third quarter valued at approximately $50,000. 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.