ServiceNow (NYSE:NOW) Shares Up 2% – Should You Buy?

ServiceNow, Inc. (NYSE:NOW) was up 2% during mid-day trading on Monday . The stock traded as high as $127.89 and last traded at $127.33. Approximately 16,911,098 shares were traded during trading, a decline of 30% from the average session volume of 24,020,604 shares. The stock had previously closed at $124.88.

Analyst Ratings Changes

A number of brokerages have weighed in on NOW. UBS Group set a $248.00 price objective on ServiceNow in a report on Thursday, July 23rd. Morgan Stanley set a $180.00 target price on ServiceNow in a research note on Tuesday, July 21st. KeyCorp reissued an “underweight” rating on shares of ServiceNow in a report on Tuesday, July 21st. Benchmark reissued a “buy” rating on shares of ServiceNow in a report on Friday, July 17th. Finally, JPMorgan Chase & Co. lifted their price target on ServiceNow from $145.00 to $150.00 and gave the company an “overweight” rating in a research note on Thursday, July 23rd. One equities research analyst has rated the stock with a Strong Buy rating, thirty-six have given a Buy rating, two have issued a Hold rating and three have given a Sell rating to the stock. According to data from MarketBeat.com, ServiceNow presently has a consensus rating of “Moderate Buy” and an average price target of $143.76.

ServiceNow Trading Down 2.6%

The stock has a market cap of $128.50 billion, a PE ratio of 77.67, a P/E/G ratio of 2.24 and a beta of 0.94. The business’s fifty day moving average is $106.56 and its 200 day moving average is $105.74. The company has a quick ratio of 0.70, a current ratio of 0.70 and a debt-to-equity ratio of 0.43.

ServiceNow (NYSE:NOW) last issued its earnings results on Wednesday, July 22nd. The information technology services provider reported $0.90 earnings per share for the quarter, topping the consensus estimate of $0.86 by $0.04. ServiceNow had a net margin of 11.34% and a return on equity of 16.45%. The company had revenue of $3.99 billion for the quarter, compared to analyst estimates of $3.93 billion. During the same period in the prior year, the business posted $0.81 earnings per share. The firm’s revenue for the quarter was up 24.0% compared to the same quarter last year. As a group, analysts predict that ServiceNow, Inc. will post 2.24 earnings per share for the current year.

Insider Buying and Selling

In related news, Director Paul Edward Chamberlain sold 1,500 shares of the company’s stock in a transaction that occurred on Thursday, May 14th. The stock was sold at an average price of $87.23, for a total value of $130,845.00. Following the sale, the director owned 44,930 shares in the company, valued at $3,919,243.90. This represents a 3.23% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Anita M. Sands sold 16,445 shares of the firm’s stock in a transaction that occurred on Thursday, May 14th. The shares were sold at an average price of $90.14, for a total value of $1,482,352.30. Following the completion of the transaction, the director directly owned 30,090 shares of the company’s stock, valued at $2,712,312.60. The trade was a 35.34% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 18,993 shares of company stock worth $1,716,436 in the last quarter. Company insiders own 0.34% of the company’s stock.

Hedge Funds Weigh In On ServiceNow

Several hedge funds have recently added to or reduced their stakes in the business. Florida Financial Advisors LLC increased its holdings in ServiceNow by 5.4% during the second quarter. Florida Financial Advisors LLC now owns 273 shares of the information technology services provider’s stock valued at $280,000 after buying an additional 14 shares during the period. Clark Capital Management Group Inc. lifted its holdings in ServiceNow by 3.6% during the third quarter. Clark Capital Management Group Inc. now owns 514 shares of the information technology services provider’s stock worth $473,000 after buying an additional 18 shares during the period. American Trust lifted its holdings in ServiceNow by 1.8% during the third quarter. American Trust now owns 1,029 shares of the information technology services provider’s stock worth $947,000 after buying an additional 18 shares during the period. Morse Asset Management Inc boosted its position in ServiceNow by 0.5% during the 2nd quarter. Morse Asset Management Inc now owns 3,488 shares of the information technology services provider’s stock valued at $3,586,000 after acquiring an additional 19 shares in the last quarter. Finally, CYBER HORNET ETFs LLC boosted its position in ServiceNow by 3.7% during the 3rd quarter. CYBER HORNET ETFs LLC now owns 567 shares of the information technology services provider’s stock valued at $522,000 after acquiring an additional 20 shares in the last quarter. 87.18% of the stock is currently owned by hedge funds and other institutional investors.

About ServiceNow

ServiceNow (NYSE: NOW) is a cloud computing company that builds enterprise software to manage digital workflows and automate business processes. Its offerings are designed to replace manual work and legacy systems with cloud-based, service-oriented applications that support IT operations, customer service, human resources, security response and other enterprise functions.

The company’s flagship product family is the Now Platform, a suite of subscription software and platform services that includes IT Service Management (ITSM), IT Operations Management (ITOM), IT Business Management (ITBM), Customer Service Management (CSM), HR Service Delivery, Security Operations and Asset Management.