ServiceNow (NYSE:NOW) Shares Down 6.6% After Analyst Downgrade

ServiceNow, Inc. (NYSE:NOW)’s share price fell 6.6% during mid-day trading on Thursday after UBS Group lowered their price target on the stock from $920.00 to $875.00. UBS Group currently has a buy rating on the stock. ServiceNow traded as low as $689.00 and last traded at $696.86. 1,380,634 shares were traded during trading, an increase of 16% from the average session volume of 1,187,097 shares. The stock had previously closed at $746.29.

A number of other research analysts also recently weighed in on the stock. Jefferies Financial Group raised their price target on shares of ServiceNow from $885.00 to $900.00 and gave the company a “buy” rating in a report on Wednesday, April 10th. Stifel Nicolaus reaffirmed a “buy” rating and issued a $820.00 price target on shares of ServiceNow in a research report on Wednesday, March 20th. Mizuho upped their price target on ServiceNow from $750.00 to $820.00 and gave the stock a “buy” rating in a research note on Thursday, January 25th. Wells Fargo & Company raised their price objective on ServiceNow from $875.00 to $900.00 and gave the company an “overweight” rating in a research note on Tuesday, April 16th. Finally, Barclays upped their target price on ServiceNow from $765.00 to $870.00 and gave the stock an “overweight” rating in a research report on Tuesday, January 23rd. Three equities research analysts have rated the stock with a hold rating and twenty-three have issued a buy rating to the stock. According to MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and a consensus target price of $777.96.

Insider Buying and Selling

In related news, insider Paul John Smith sold 5,159 shares of the stock in a transaction dated Tuesday, February 20th. The stock was sold at an average price of $745.32, for a total transaction of $3,845,105.88. Following the completion of the transaction, the insider now directly owns 5,453 shares in the company, valued at $4,064,229.96. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. In related news, insider Paul John Smith sold 5,159 shares of the stock in a transaction on Tuesday, February 20th. The shares were sold at an average price of $745.32, for a total transaction of $3,845,105.88. Following the completion of the transaction, the insider now owns 5,453 shares in the company, valued at $4,064,229.96. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CEO William R. Mcdermott sold 5,030 shares of the business’s stock in a transaction dated Tuesday, February 20th. The stock was sold at an average price of $753.08, for a total transaction of $3,787,992.40. Following the sale, the chief executive officer now directly owns 17,177 shares in the company, valued at $12,935,655.16. The disclosure for this sale can be found here. In the last ninety days, insiders sold 13,164 shares of company stock valued at $9,940,303. Company insiders own 0.25% of the company’s stock.

Hedge Funds Weigh In On ServiceNow

Institutional investors have recently added to or reduced their stakes in the company. PFG Private Wealth Management LLC acquired a new position in shares of ServiceNow during the 3rd quarter worth about $28,000. University of Texas Texas AM Investment Managment Co. acquired a new position in ServiceNow during the fourth quarter worth approximately $29,000. AdvisorNet Financial Inc increased its position in ServiceNow by 266.7% during the fourth quarter. AdvisorNet Financial Inc now owns 44 shares of the information technology services provider’s stock worth $31,000 after buying an additional 32 shares during the last quarter. Steward Financial Group LLC raised its stake in ServiceNow by 125.0% in the third quarter. Steward Financial Group LLC now owns 63 shares of the information technology services provider’s stock valued at $35,000 after buying an additional 35 shares during the period. Finally, Princeton Global Asset Management LLC acquired a new stake in shares of ServiceNow in the third quarter valued at approximately $35,000. 87.18% of the stock is currently owned by institutional investors and hedge funds.

ServiceNow Price Performance

The company has a 50 day moving average price of $761.32 and a 200 day moving average price of $706.74. The company has a current ratio of 1.06, a quick ratio of 1.06 and a debt-to-equity ratio of 0.20. The company has a market capitalization of $144.67 billion, a P/E ratio of 83.68, a P/E/G ratio of 4.68 and a beta of 0.97.

ServiceNow (NYSE:NOW) last released its quarterly earnings data on Wednesday, January 24th. The information technology services provider reported $3.11 EPS for the quarter, beating the consensus estimate of $2.77 by $0.34. ServiceNow had a net margin of 19.30% and a return on equity of 11.85%. The firm had revenue of $2.44 billion for the quarter, compared to the consensus estimate of $2.40 billion. During the same period in the previous year, the company earned $0.88 earnings per share. The company’s quarterly revenue was up 25.6% on a year-over-year basis. On average, equities analysts predict that ServiceNow, Inc. will post 6.16 EPS for the current fiscal year.

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.