ServiceNow (NYSE:NOW) Shares Down 2.4% After Insider Selling

Shares of ServiceNow, Inc. (NYSE:NOW - Get Free Report) fell 2.4% on Thursday after an insider sold shares in the company. The stock traded as low as $958.87 and last traded at $963.60. 412,154 shares were traded during trading, a decline of 74% from the average session volume of 1,605,637 shares. The stock had previously closed at $987.14.

Specifically, CEO William R. Mcdermott sold 384 shares of the stock in a transaction on Tuesday, February 18th. The stock was sold at an average price of $986.64, for a total value of $378,869.76. Following the sale, the chief executive officer now directly owns 6,614 shares in the company, valued at approximately $6,525,636.96. This trade represents a 5.49 % decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, insider Paul John Smith sold 2,404 shares of the stock in a transaction on Tuesday, February 18th. The shares were sold at an average price of $980.05, for a total value of $2,356,040.20. Following the completion of the sale, the insider now owns 6,244 shares in the company, valued at approximately $6,119,432.20. The trade was a 27.80 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In other news, insider Paul John Smith sold 1,184 shares of the stock in a transaction on Friday, February 14th. The stock was sold at an average price of $980.08, for a total value of $1,160,414.72. Following the sale, the insider now directly owns 4,204 shares in the company, valued at approximately $4,120,256.32. This trade represents a 21.97 % decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website.

Analysts Set New Price Targets

A number of analysts have weighed in on the company. Needham & Company LLC raised their price target on ServiceNow from $1,150.00 to $1,200.00 and gave the company a "buy" rating in a research note on Thursday, January 30th. Sanford C. Bernstein raised their price target on ServiceNow from $906.00 to $913.00 and gave the company an "outperform" rating in a research note on Thursday, October 24th. Cantor Fitzgerald assumed coverage on ServiceNow in a research note on Friday, January 17th. They issued an "overweight" rating and a $1,332.00 price target on the stock. Stifel Nicolaus raised their price target on ServiceNow from $900.00 to $990.00 and gave the company a "buy" rating in a research note on Thursday, October 24th. Finally, The Goldman Sachs Group raised their price target on ServiceNow from $1,050.00 to $1,200.00 and gave the company a "buy" rating in a research note on Friday, January 10th. One analyst has rated the stock with a sell rating, four have given a hold rating, twenty-five have issued a buy rating and two have issued a strong buy rating to the company's stock. According to MarketBeat.com, ServiceNow currently has a consensus rating of "Moderate Buy" and an average target price of $1,129.72.

ServiceNow Price Performance

The stock has a fifty day simple moving average of $1,058.36 and a two-hundred day simple moving average of $976.01. The company has a market cap of $193.18 billion, a PE ratio of 137.30, a price-to-earnings-growth ratio of 4.60 and a beta of 0.99. The company has a current ratio of 1.10, a quick ratio of 1.10 and a debt-to-equity ratio of 0.15.

ServiceNow (NYSE:NOW - Get Free Report) last announced its quarterly earnings data on Wednesday, January 29th. The information technology services provider reported $3.67 earnings per share for the quarter, meeting analysts' consensus estimates of $3.67. ServiceNow had a return on equity of 17.11% and a net margin of 12.97%. On average, equities analysts predict that ServiceNow, Inc. will post 8.93 EPS for the current fiscal year.

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

Institutional Investors Weigh In On ServiceNow

A number of hedge funds and other institutional investors have recently modified their holdings of the stock. Vermillion Wealth Management Inc. acquired a new stake in shares of ServiceNow during the 4th quarter valued at approximately $109,000. Mackenzie Financial Corp lifted its position in shares of ServiceNow by 30.9% during the 4th quarter. Mackenzie Financial Corp now owns 173,896 shares of the information technology services provider's stock valued at $184,351,000 after acquiring an additional 41,058 shares during the period. Forum Financial Management LP lifted its position in shares of ServiceNow by 52.7% during the 4th quarter. Forum Financial Management LP now owns 806 shares of the information technology services provider's stock valued at $855,000 after acquiring an additional 278 shares during the period. Michels Family Financial LLC acquired a new stake in shares of ServiceNow during the 4th quarter valued at approximately $682,000. Finally, Castlekeep Investment Advisors LLC acquired a new stake in shares of ServiceNow during the 4th quarter valued at approximately $17,982,000. 87.18% of the stock is currently owned by institutional investors and hedge funds.

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.