ServiceNow, Inc. (NYSE:NOW – Get Free Report)’s stock price fell 2.6% during trading on Wednesday . The stock traded as low as $105.40 and last traded at $107.8730. 13,946,146 shares were traded during mid-day trading, a decline of 42% from the average daily volume of 24,001,809 shares. The stock had previously closed at $110.73.
Key Stories Impacting ServiceNow
Here are the key news stories impacting ServiceNow this week:
- Positive Sentiment: ServiceNow rallied after reports that a large international electronics company is teaming up with it on a new AI-powered product that will be available on ServiceNow’s platform, reinforcing the company’s role in enterprise AI. Article Title
- Positive Sentiment: Truist raised its price target on ServiceNow to $130 from $120 and reiterated a Buy rating, signaling confidence in upside from current levels. Article Title
- Positive Sentiment: Broader software sentiment improved as investors rotated toward AI-enabled software names, which helped offset weakness in other AI-related areas like semiconductors. Article Title
- Neutral Sentiment: ServiceNow was mostly flat during Thursday’s session as investors balanced AI enthusiasm with uncertainty about how quickly new partnerships will translate into revenue. Article Title
- Negative Sentiment: On Friday, ServiceNow gave back some of its recent gains as traders digested the earlier AI headlines and took profits after the sharp move higher. Article Title
Analysts Set New Price Targets
Several research firms have recently weighed in on NOW. JPMorgan Chase & Co. lowered their target price on shares of ServiceNow from $195.00 to $145.00 and set an “overweight” rating on the stock in a report on Thursday, April 23rd. Benchmark boosted their price target on shares of ServiceNow from $125.00 to $130.00 and gave the company a “buy” rating in a research report on Monday, June 15th. Needham & Company LLC reaffirmed a “buy” rating and set a $115.00 price objective on shares of ServiceNow in a research note on Tuesday, May 5th. Canaccord Genuity Group dropped their price objective on shares of ServiceNow from $200.00 to $145.00 and set a “buy” rating for the company in a report on Thursday, April 23rd. Finally, Deutsche Bank Aktiengesellschaft cut their target price on shares of ServiceNow from $180.00 to $135.00 and set a “buy” rating for the company in a research note on Thursday, April 16th. One equities research analyst has rated the stock with a Strong Buy rating, thirty-six have issued a Buy rating, four have issued a Hold rating and one has given a Sell rating to the company. According to MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average target price of $141.47.
ServiceNow Price Performance
The stock has a fifty day moving average of $102.11 and a 200-day moving average of $111.29. The firm has a market capitalization of $111.16 billion, a P/E ratio of 64.25, a PEG ratio of 1.79 and a beta of 0.96. The company has a quick ratio of 0.84, a current ratio of 0.84 and a debt-to-equity ratio of 0.13.
ServiceNow (NYSE:NOW – Get Free Report) last issued its quarterly earnings data on Wednesday, April 22nd. The information technology services provider reported $0.97 EPS for the quarter, hitting analysts’ consensus estimates of $0.97. ServiceNow had a net margin of 12.59% and a return on equity of 18.16%. The firm had revenue of $3.77 billion for the quarter, compared to analyst estimates of $3.75 billion. During the same quarter in the prior year, the firm earned $0.81 EPS. The company’s revenue was up 22.1% on a year-over-year basis. Equities analysts predict that ServiceNow, Inc. will post 2.34 EPS for the current fiscal year.
Insider Transactions at ServiceNow
In related news, insider Jacqueline P. Canney sold 8,927 shares of the firm’s stock in a transaction dated Friday, April 24th. The stock was sold at an average price of $89.60, for a total value of $799,859.20. Following the transaction, the insider owned 29,531 shares in the company, valued at $2,645,977.60. This trade represents a 23.21% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, Director Anita M. Sands sold 16,445 shares of the firm’s stock in a transaction dated Thursday, May 14th. The shares were sold at an average price of $90.14, for a total transaction of $1,482,352.30. Following the completion of the transaction, the director directly owned 30,090 shares in the company, valued at $2,712,312.60. This trade represents a 35.34% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last three months, insiders sold 28,071 shares of company stock worth $2,529,956. 0.34% of the stock is owned by insiders.
Institutional Investors Weigh In On ServiceNow
Hedge funds have recently bought and sold shares of the company. Vanguard Group Inc. grew its position in ServiceNow by 404.5% during the fourth quarter. Vanguard Group Inc. now owns 101,963,384 shares of the information technology services provider’s stock worth $15,619,771,000 after buying an additional 81,752,460 shares in the last quarter. State Street Corp lifted its holdings in shares of ServiceNow by 406.6% during the 4th quarter. State Street Corp now owns 47,896,597 shares of the information technology services provider’s stock worth $7,337,280,000 after acquiring an additional 38,441,898 shares during the period. Price T Rowe Associates Inc. MD lifted its holdings in shares of ServiceNow by 371.0% during the 4th quarter. Price T Rowe Associates Inc. MD now owns 32,395,663 shares of the information technology services provider’s stock worth $4,962,692,000 after acquiring an additional 25,517,218 shares during the period. Geode Capital Management LLC increased its stake in ServiceNow by 404.8% in the fourth quarter. Geode Capital Management LLC now owns 23,512,428 shares of the information technology services provider’s stock valued at $3,591,425,000 after acquiring an additional 18,854,775 shares during the last quarter. Finally, Morgan Stanley lifted its stake in ServiceNow by 335.6% during the fourth quarter. Morgan Stanley now owns 22,733,483 shares of the information technology services provider’s stock worth $3,482,543,000 after purchasing an additional 17,514,679 shares during the last quarter. 87.18% of the stock is currently owned by institutional investors and hedge funds.
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.
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