ServiceNow (NYSE:NOW) Shares Gap Down Following Weak Earnings

Shares of ServiceNow, Inc. (NYSE:NOW - Get Free Report) gapped down prior to trading on Thursday following a dissappointing earnings announcement. The stock had previously closed at $1,143.63, but opened at $1,027.12. ServiceNow shares last traded at $1,003.73, with a volume of 1,028,040 shares.

The information technology services provider reported $1.93 EPS 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%.

ServiceNow announced that its Board of Directors has initiated a stock buyback plan on Wednesday, January 29th that authorizes the company to repurchase $3.00 billion in shares. This repurchase authorization authorizes the information technology services provider to repurchase up to 1.3% of its stock through open market purchases. Stock repurchase plans are often an indication that the company's leadership believes its shares are undervalued.

Analysts Set New Price Targets

Several brokerages have recently weighed in on NOW. Cantor Fitzgerald began coverage on shares of ServiceNow in a research report on Friday, January 17th. They set an "overweight" rating and a $1,332.00 price target on the stock. The Goldman Sachs Group increased their price target on shares of ServiceNow from $1,050.00 to $1,200.00 and gave the company a "buy" rating in a research note on Friday, January 10th. Morgan Stanley cut ServiceNow from an "overweight" rating to an "equal weight" rating and upped their price objective for the company from $900.00 to $960.00 in a report on Monday, October 21st. TD Cowen raised their target price on ServiceNow from $1,025.00 to $1,300.00 and gave the stock a "buy" rating in a research note on Tuesday, December 10th. Finally, StockNews.com upgraded ServiceNow from a "hold" rating to a "buy" rating in a research report on Tuesday, November 12th. One investment analyst has rated the stock with a sell rating, three have issued a hold rating, twenty-five have issued a buy rating and two have given a strong buy rating to the stock. According to data from MarketBeat.com, ServiceNow presently has a consensus rating of "Moderate Buy" and a consensus price target of $1,129.93.

Insider Activity

In other ServiceNow news, insider Jacqueline P. Canney sold 76 shares of the company's stock in a transaction on Friday, November 8th. The shares were sold at an average price of $1,010.94, for a total value of $76,831.44. Following the completion of the transaction, the insider now owns 3,027 shares in the company, valued at $3,060,115.38. This represents a 2.45 % decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, Director Paul Edward Chamberlain sold 300 shares of the firm's stock in a transaction that occurred on Friday, November 29th. The stock was sold at an average price of $1,047.95, for a total value of $314,385.00. Following the transaction, the director now owns 10,467 shares in the company, valued at $10,968,892.65. This represents a 2.79 % decrease in their position. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 20,731 shares of company stock worth $21,016,751. 0.25% of the stock is currently owned by insiders.

Institutional Investors Weigh In On ServiceNow

Institutional investors and hedge funds have recently made changes to their positions in the business. Valmark Advisers Inc. raised its stake in ServiceNow by 5.4% during the 4th quarter. Valmark Advisers Inc. now owns 2,457 shares of the information technology services provider's stock valued at $2,605,000 after acquiring an additional 125 shares during the last quarter. L.M. Kohn & Company raised its stake in shares of ServiceNow by 0.7% during the fourth quarter. L.M. Kohn & Company now owns 1,921 shares of the information technology services provider's stock worth $2,036,000 after purchasing an additional 13 shares during the last quarter. WD Rutherford LLC lifted its holdings in shares of ServiceNow by 2.3% during the fourth quarter. WD Rutherford LLC now owns 5,132 shares of the information technology services provider's stock worth $5,441,000 after purchasing an additional 117 shares during the period. Tcfg Wealth Management LLC acquired a new position in ServiceNow in the 4th quarter valued at $230,000. Finally, Sheaff Brock Investment Advisors LLC raised its position in ServiceNow by 3.8% during the 4th quarter. Sheaff Brock Investment Advisors LLC now owns 596 shares of the information technology services provider's stock worth $632,000 after buying an additional 22 shares during the last quarter. 87.18% of the stock is owned by hedge funds and other institutional investors.

ServiceNow Price Performance

The company has a current ratio of 1.13, a quick ratio of 1.13 and a debt-to-equity ratio of 0.16. The company's 50 day moving average price is $1,085.21 and its 200 day moving average price is $952.30. The company has a market cap of $208.40 billion, a price-to-earnings ratio of 157.34, a PEG ratio of 5.11 and a beta of 0.99.

ServiceNow Company Profile

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.