ServiceNow (NYSE:NOW) Trading Down 3.7% - Here's Why

ServiceNow, Inc. (NYSE:NOW - Get Free Report)'s share price traded down 3.7% during mid-day trading on Thursday . The company traded as low as $809.18 and last traded at $813.08. 323,511 shares changed hands during mid-day trading, a decline of 76% from the average session volume of 1,332,974 shares. The stock had previously closed at $844.12.

Analysts Set New Price Targets

NOW has been the topic of several research reports. Citigroup decreased their price target on shares of ServiceNow from $1,432.00 to $1,426.00 and set a "buy" rating on the stock in a report on Tuesday, February 4th. Raymond James started coverage on shares of ServiceNow in a research note on Tuesday, December 24th. They set an "outperform" rating and a $1,200.00 target price on the stock. Guggenheim reiterated a "sell" rating and issued a $716.00 price target on shares of ServiceNow in a research note on Wednesday, January 22nd. Redburn Atlantic assumed coverage on ServiceNow in a research report on Wednesday, February 19th. They set a "buy" rating on the stock. Finally, Wells Fargo & Company increased their target price on ServiceNow from $1,150.00 to $1,250.00 and gave the company an "overweight" rating in a research report on Thursday, December 5th. One investment analyst has rated the stock with a sell rating, four have given a hold rating and twenty-seven have assigned a buy rating to the stock. According to MarketBeat, the company presently has an average rating of "Moderate Buy" and a consensus price target of $1,100.31.

ServiceNow Stock Up 2.1 %

The company has a market cap of $174.12 billion, a price-to-earnings ratio of 123.75, a P/E/G ratio of 4.51 and a beta of 1.03. The stock's 50-day moving average is $971.31 and its 200-day moving average is $985.39. The company has a current ratio of 1.10, a quick ratio of 1.10 and a debt-to-equity ratio of 0.15.

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

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

Insider Activity

In other news, insider Jacqueline P. Canney sold 455 shares of ServiceNow stock in a transaction dated 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. This trade represents a 13.07 % decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, CFO Gina Mastantuono sold 4,442 shares of the company's stock in a transaction dated Friday, February 21st. The stock was sold at an average price of $964.70, for a total transaction of $4,285,197.40. Following the completion of the sale, the chief financial officer now owns 11,126 shares in the company, valued at $10,733,252.20. This represents a 28.53 % decrease in their position. The disclosure for this sale can be found here. Insiders sold a total of 20,351 shares of company stock worth $20,050,076 over the last quarter. 0.25% of the stock is currently owned by corporate insiders.

Institutional Trading of ServiceNow

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in NOW. United Bank bought a new stake in ServiceNow during the third quarter worth $480,000. Nicolet Advisory Services LLC boosted its holdings in ServiceNow by 39.9% during the 3rd quarter. Nicolet Advisory Services LLC now owns 1,014 shares of the information technology services provider's stock worth $903,000 after acquiring an additional 289 shares during the last quarter. Great Valley Advisor Group Inc. grew its stake in shares of ServiceNow by 0.9% in the 3rd quarter. Great Valley Advisor Group Inc. now owns 8,154 shares of the information technology services provider's stock worth $7,293,000 after acquiring an additional 76 shares in the last quarter. Cerity Partners LLC raised its holdings in shares of ServiceNow by 23.4% in the third quarter. Cerity Partners LLC now owns 91,508 shares of the information technology services provider's stock valued at $81,843,000 after purchasing an additional 17,382 shares during the last quarter. Finally, Kingsview Wealth Management LLC lifted its position in shares of ServiceNow by 8.0% during the third quarter. Kingsview Wealth Management LLC now owns 2,638 shares of the information technology services provider's stock valued at $2,359,000 after purchasing an additional 196 shares in the last quarter. 87.18% of the stock is owned by institutional investors.

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.