Share Repurchase Program Announced by ServiceNow (NYSE:NOW) Board of Directors

ServiceNow (NYSE:NOW - Get Free Report) declared that its Board of Directors has initiated a stock buyback program on Wednesday, January 29th, RTT News reports. The company plans to buyback $3.00 billion in shares. This buyback authorization authorizes the information technology services provider to repurchase up to 1.3% of its shares through open market purchases. Shares buyback programs are often an indication that the company's leadership believes its shares are undervalued.

ServiceNow Stock Performance

ServiceNow stock traded down $131.96 during mid-day trading on Thursday, reaching $1,011.67. The company's stock had a trading volume of 6,195,277 shares, compared to its average volume of 1,655,699. ServiceNow has a 12-month low of $637.99 and a 12-month high of $1,198.09. The company has a market capitalization of $208.40 billion, a P/E ratio of 157.34, a PEG ratio of 5.11 and a beta of 0.99. The company has a debt-to-equity ratio of 0.16, a quick ratio of 1.13 and a current ratio of 1.13. The firm's fifty day moving average price is $1,085.21 and its two-hundred day moving average price is $952.30.

ServiceNow (NYSE:NOW - Get Free Report) last released its quarterly earnings data on Wednesday, January 29th. The information technology services provider reported $1.93 earnings per share for the quarter, missing analysts' consensus estimates of $3.67 by ($1.74). ServiceNow had a net margin of 12.77% and a return on equity of 16.03%. Sell-side analysts predict that ServiceNow will post 7.06 EPS for the current fiscal year.

Analyst Upgrades and Downgrades

Several research analysts recently issued reports on the company. Piper Sandler raised their target price on ServiceNow from $1,000.00 to $1,200.00 and gave the stock an "overweight" rating in a research report on Monday, January 6th. Canaccord Genuity Group raised their target price on ServiceNow from $1,200.00 to $1,275.00 and gave the stock a "buy" rating in a research report on Thursday. Guggenheim reaffirmed a "sell" rating and set a $716.00 target price on shares of ServiceNow in a research report on Wednesday, January 22nd. Needham & Company LLC increased their price target on ServiceNow from $1,150.00 to $1,200.00 and gave the stock a "buy" rating in a report on Thursday. Finally, Royal Bank of Canada reiterated an "outperform" rating and set a $1,210.00 price target on shares of ServiceNow in a report on Thursday. One equities research analyst has rated the stock with a sell rating, three have assigned a hold rating, twenty-five have given a buy rating and two have issued a strong buy rating to the company's stock. Based on data from MarketBeat, the company has an average rating of "Moderate Buy" and a consensus price target of $1,129.93.

Insider Activity

In other news, insider Jacqueline P. Canney sold 455 shares of the business's stock in a transaction on Thursday, January 16th. The shares were sold at an average price of $1,058.54, for a total transaction of $481,635.70. Following the completion of the transaction, the insider now directly owns 3,027 shares in the company, valued at $3,204,200.58. The trade was a 13.07 % decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, Director Paul Edward Chamberlain sold 300 shares of the business's stock in a transaction on Friday, November 29th. The shares were sold at an average price of $1,047.95, for a total transaction of $314,385.00. Following the transaction, the director now owns 10,467 shares of the company's stock, valued at $10,968,892.65. This trade represents a 2.79 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 20,731 shares of company stock worth $21,016,751 in the last three months. Corporate insiders own 0.25% of the company's stock.

About ServiceNow

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.