ServiceNow (NYSE:NOW) Shares Down 1.9% Following Insider Selling

ServiceNow, Inc. (NYSE:NOW)’s stock price traded down 1.9% during mid-day trading on Wednesday following insider selling activity. The company traded as low as $977.63 and last traded at $978.85. 416,398 shares were traded during trading, a decline of 74% from the average session volume of 1,601,123 shares. The stock had previously closed at $997.48.

Specifically, CEO William R. Mcdermott sold 384 shares of the firm’s stock in a transaction that occurred 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 owns 6,614 shares of the company’s stock, valued at approximately $6,525,636.96. This trade represents a 5.49 % decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, insider Paul John Smith sold 2,404 shares of the stock in a transaction on Tuesday, February 18th. The stock was 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 directly owns 6,244 shares in the company, valued at $6,119,432.20. This represents 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 business’s stock in a transaction on Friday, February 14th. The shares were sold at an average price of $980.08, for a total transaction of $1,160,414.72. Following the completion of the transaction, the insider now owns 4,204 shares of the company’s stock, valued at approximately $4,120,256.32. The trade was a 21.97 % decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through the SEC website.

Analyst Upgrades and Downgrades

Several analysts recently weighed in on NOW shares. Wells Fargo & Company lifted their price objective on shares of ServiceNow from $1,150.00 to $1,250.00 and gave the company an “overweight” rating in a research report on Thursday, December 5th. KeyCorp cut ServiceNow from an “overweight” rating to a “sector weight” rating in a report on Friday, December 13th. Truist Financial raised their target price on ServiceNow from $900.00 to $1,100.00 and gave the company a “hold” rating in a research report on Thursday, December 12th. Cantor Fitzgerald assumed coverage on ServiceNow in a research note on Friday, January 17th. They set an “overweight” rating and a $1,332.00 target price on the stock. Finally, Robert W. Baird decreased their price target on ServiceNow from $1,250.00 to $1,200.00 and set an “outperform” rating for the company in a research note on Thursday, January 30th. One equities research analyst has rated the stock with a sell rating, four have issued a hold rating, twenty-five have issued a buy rating and two have assigned a strong buy rating to the company. According to data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and an average price target of $1,129.72.

ServiceNow Stock Down 3.1 %

The company has a debt-to-equity ratio of 0.15, a quick ratio of 1.10 and a current ratio of 1.10. The stock has a market cap of $193.18 billion, a price-to-earnings ratio of 137.30, a price-to-earnings-growth ratio of 4.60 and a beta of 0.99. The business’s 50 day moving average is $1,058.36 and its 200 day moving average is $976.01.

ServiceNow (NYSE:NOW) last issued its earnings results on Wednesday, January 29th. The information technology services provider reported $3.67 EPS for the quarter, hitting the consensus estimate of $3.67. ServiceNow had a return on equity of 17.11% and a net margin of 12.97%. Equities analysts expect that ServiceNow, Inc. will post 8.93 earnings per share for the current year.

ServiceNow declared that its Board of Directors has authorized a share repurchase plan on Wednesday, January 29th that allows the company to repurchase $3.00 billion in outstanding shares. This repurchase authorization allows the information technology services provider to reacquire up to 1.3% of its stock through open market purchases. Stock repurchase plans are often a sign that the company’s board of directors believes its shares are undervalued.

Hedge Funds Weigh In On ServiceNow

A number of large investors have recently made changes to their positions in the business. Quarry LP purchased a new stake in ServiceNow in the 4th quarter worth approximately $27,000. Atala Financial Inc purchased a new stake in shares of ServiceNow during the fourth quarter worth $28,000. Truvestments Capital LLC acquired a new stake in ServiceNow during the third quarter valued at $30,000. LFA Lugano Financial Advisors SA acquired a new stake in ServiceNow during the fourth quarter valued at $32,000. Finally, FPC Investment Advisory Inc. increased its position in ServiceNow by 725.0% in the 4th quarter. FPC Investment Advisory Inc. now owns 33 shares of the information technology services provider’s stock worth $34,000 after purchasing an additional 29 shares during the last quarter. Institutional investors and hedge funds own 87.18% 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.