ServiceNow (NYSE:NOW) Shares Down 3.3% on Insider Selling

Shares of ServiceNow, Inc. (NYSE:NOW) traded down 3.3% on Tuesday following insider selling activity. The company traded as low as $97.00 and last traded at $99.3530. 18,668,973 shares were traded during mid-day trading, a decline of 13% from the average daily volume of 21,554,979 shares. The stock had previously closed at $102.76.

Specifically, insider Jacqueline Canney sold 1,289 shares of ServiceNow stock in a transaction on Monday, November 9th. The shares were sold at an average price of $101.70, for a total value of $131,091.30. Following the completion of the transaction, the insider owned 30,042 shares of the company’s stock, valued at $3,055,271.40. The trade was a 4.11% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards.

Wall Street Analysts Forecast Growth

A number of analysts have recently weighed in on the company. Piper Sandler reiterated an “overweight” rating and set a $175.00 price target on shares of ServiceNow in a research report on Thursday, October 29th. Benchmark reissued a “buy” rating on shares of ServiceNow in a research note on Friday, July 17th. Cantor Fitzgerald upped their price objective on shares of ServiceNow from $174.00 to $201.00 and gave the company an “overweight” rating in a research note on Monday, October 26th. Citigroup decreased their price target on shares of ServiceNow from $170.00 to $157.00 and set a “buy” rating for the company in a report on Thursday, October 29th. Finally, Morgan Stanley reaffirmed an “overweight” rating and issued a $160.00 price objective on shares of ServiceNow in a research note on Thursday, October 29th. One analyst has rated the stock with a Strong Buy rating, thirty-six have issued a Buy rating, three have assigned a Hold rating and three have assigned a Sell rating to the stock. According to MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and a consensus target price of $154.50.

Top ServiceNow Stories

Investors following NOW have been watching these stories:

• Positive Sentiment: ServiceNow’s AI opportunity remains a potential long-term catalyst: its expanded Google Cloud partnership enables Gemini Enterprise to carry out business workflows. However, the financial payoff depends on adoption and monetization. ServiceNow and Google Cloud AI partnership
• Neutral Sentiment: An insider sold 1,289 shares under a pre-arranged trading plan to cover tax withholding on vested equity awards, a transaction that is less informative than an open-market sale. Insider sale details
• Negative Sentiment: Recent coverage highlights a 29% monthly share decline and lingering concerns after quarterly EPS slightly missed estimates, despite revenue topping forecasts and growing 20.5% year over year. Broad weakness in technology stocks may also be weighing on sentiment. ServiceNow’s recent share decline

ServiceNow Stock Performance

The company has a quick ratio of 0.72, a current ratio of 0.72 and a debt-to-equity ratio of 0.42. The company has a market capitalization of $104.47 billion, a P/E ratio of 72.41, a PEG ratio of 1.95 and a beta of 1.00. The stock has a fifty day simple moving average of $133.69 and a 200-day simple moving average of $114.40.

ServiceNow (NYSE:NOW) last issued its quarterly earnings data on Wednesday, October 28th. The information technology services provider reported $1.00 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.02 by ($0.02). The business had revenue of $4.11 billion during the quarter, compared to the consensus estimate of $4.09 billion. ServiceNow had a net margin of 9.36% and a return on equity of 15.17%. The company’s revenue for the quarter was up 20.5% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $4.82 EPS. Equities analysts forecast that ServiceNow, Inc. will post 2.12 EPS for the current year.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently made changes to their positions in the stock. BlackRock Inc. acquired a new position in shares of ServiceNow in the 2nd quarter valued at $9,536,615,000. Bank of New York Mellon Corp acquired a new position in ServiceNow during the second quarter worth approximately $712,573,000. Legal & General Group Plc bought a new stake in shares of ServiceNow during the 2nd quarter worth about $641,888,000. Bank of America Corp DE acquired a new stake in shares of ServiceNow during the second quarter worth $627,355,000. Finally, Deutsche Bank AG acquired a new position in ServiceNow in the 2nd quarter valued at $595,157,000. 87.18% of the stock is currently owned by institutional investors.

ServiceNow Company Profile

ServiceNow, Inc. provides cloud-based software that helps organizations manage digital workflows and automate business processes. Founded in 2004 by Fred Luddy, the company began with a focus on IT service management and has expanded its platform to support a range of enterprise operations. Its products include tools for IT service and operations management, customer service, human resources, security, and application development. ServiceNow also offers artificial intelligence capabilities, including tools designed to help organizations automate tasks and find information across workflows.