ServiceNow (NYSE:NOW) Stock Price Down 1.9% on Insider Selling

ServiceNow, Inc. (NYSE:NOW) shares fell 1.9% during mid-day trading on Wednesday after an insider sold shares in the company. The company traded as low as $977.63 and last traded at $978.85. 416,398 shares changed hands 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 business’s stock in a transaction dated Tuesday, February 18th. The shares were sold at an average price of $986.64, for a total value of $378,869.76. Following the sale, the chief executive officer now directly owns 6,614 shares in the company, valued at $6,525,636.96. The trade was a 5.49 % decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, insider Paul John Smith sold 2,404 shares of the business’s stock in a transaction dated Tuesday, February 18th. The stock was sold at an average price of $980.05, for a total transaction of $2,356,040.20. Following the completion of the sale, the insider now 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 related news, insider Paul John Smith sold 1,184 shares of the business’s stock in a transaction dated Friday, February 14th. The shares were sold at an average price of $980.08, for a total value of $1,160,414.72. Following the sale, the insider now directly owns 4,204 shares in the company, valued at $4,120,256.32. The trade was a 21.97 % decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink.

Analyst Upgrades and Downgrades

A number of research firms have issued reports on NOW. Oppenheimer upped their target price on shares of ServiceNow from $1,150.00 to $1,200.00 and gave the company an “outperform” rating in a report on Thursday, January 30th. Piper Sandler upped their target price on shares of ServiceNow from $1,000.00 to $1,200.00 and gave the company an “overweight” rating in a report on Monday, January 6th. Mizuho upped their target price on shares of ServiceNow from $1,070.00 to $1,210.00 and gave the company an “outperform” rating in a report on Friday, December 13th. Canaccord Genuity Group increased their price objective on shares of ServiceNow from $1,200.00 to $1,275.00 and gave the stock a “buy” rating in a report on Thursday, January 30th. Finally, Redburn Atlantic started coverage on shares of ServiceNow in a report on Wednesday. They set a “buy” rating on the stock. One analyst has rated the stock with a sell rating, four have assigned a hold rating, twenty-five have assigned a buy rating and two have assigned a strong buy rating to the company’s stock. According to MarketBeat.com, the company has an average rating of “Moderate Buy” and an average target price of $1,129.72.

ServiceNow Stock Performance

The company has a market capitalization of $193.18 billion, a PE ratio of 137.30, a PEG ratio of 4.60 and a beta of 0.99. 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 company has a 50 day moving average price of $1,058.36 and a 200 day moving average price of $976.01.

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

ServiceNow declared that its Board of Directors has initiated a stock buyback program on Wednesday, January 29th that permits the company to buyback $3.00 billion in outstanding shares. This buyback authorization permits the information technology services provider to purchase up to 1.3% of its stock through open market purchases. Stock buyback programs are typically a sign that the company’s board of directors believes its stock is undervalued.

Hedge Funds Weigh In On ServiceNow

Several large investors have recently added to or reduced their stakes in NOW. Foundations Investment Advisors LLC lifted its stake in ServiceNow by 19.3% during the third quarter. Foundations Investment Advisors LLC now owns 624 shares of the information technology services provider’s stock worth $558,000 after purchasing an additional 101 shares during the last quarter. Segment Wealth Management LLC lifted its stake in ServiceNow by 39.3% in the third quarter. Segment Wealth Management LLC now owns 709 shares of the information technology services provider’s stock valued at $634,000 after buying an additional 200 shares during the last quarter. Commerzbank Aktiengesellschaft FI lifted its stake in ServiceNow by 44.0% in the third quarter. Commerzbank Aktiengesellschaft FI now owns 1,076 shares of the information technology services provider’s stock valued at $963,000 after buying an additional 329 shares during the last quarter. Axecap Investments LLC bought a new stake in ServiceNow in the third quarter valued at $985,000. Finally, International Assets Investment Management LLC lifted its stake in ServiceNow by 89,137.0% in the third quarter. International Assets Investment Management LLC now owns 1,185,067 shares of the information technology services provider’s stock valued at $1,059,912,000 after buying an additional 1,183,739 shares during the last quarter. 87.18% of the stock is currently owned by institutional investors.

ServiceNow Company Profile

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.