ServiceNow (NYSE:NOW) Stock Rating Lowered by Wall Street Zen
Wall Street Zen downgraded ServiceNow (NYSE:NOW) from a "buy" to a "hold" rating. Other analysts have mixed views, with William Blair maintaining an "outperform" rating, while JPMorgan Chase lowered its target price from $1,200 to $970. ServiceNow's stock opened at $1,005.53, with a market cap of $208.14 billion and a P/E ratio of 147.22. The company reported $4.04 EPS for the last quarter, exceeding estimates, and announced a $3 billion share buyback program. Insider selling activity has been noted, with insiders owning 0.38% of the stock.
ServiceNow (NYSE:NOW - Get Free Report) was downgraded by stock analysts at Wall Street Zen from a "buy" rating to a "hold" rating in a research report issued to clients and investors on Saturday.
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A number of other research analysts have also recently commented on the company. William Blair restated an "outperform" rating on shares of ServiceNow in a research report on Friday, March 7th. Robert W. Baird raised their price target on ServiceNow from $1,010.00 to $1,150.00 and gave the stock an "outperform" rating in a research report on Thursday, April 24th. UBS Group restated a "buy" rating and issued a $1,025.00 price target (up previously from $900.00) on shares of ServiceNow in a research report on Thursday, April 24th. TD Securities reiterated a "buy" rating and issued a $1,100.00 target price on shares of ServiceNow in a research report on Thursday, April 24th. Finally, JPMorgan Chase & Co. decreased their target price on ServiceNow from $1,200.00 to $970.00 and set an "overweight" rating on the stock in a research report on Tuesday, April 22nd. One investment analyst has rated the stock with a sell rating, three have issued a hold rating, twenty-nine have assigned a buy rating and one has issued a strong buy rating to the company's stock. According to data from MarketBeat, ServiceNow has a consensus rating of "Moderate Buy" and an average target price of $1,062.50.
Read Our Latest Report on ServiceNow
ServiceNow Stock Down 1.0%
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Shares of NYSE NOW opened at $1,005.53 on Friday. The company has a debt-to-equity ratio of 0.15, a quick ratio of 1.10 and a current ratio of 1.10. ServiceNow has a 52 week low of $637.99 and a 52 week high of $1,198.09. The stock has a market capitalization of $208.14 billion, a P/E ratio of 147.22, a PEG ratio of 4.51 and a beta of 0.97. The stock's fifty day moving average is $881.74 and its 200 day moving average is $975.40.
ServiceNow (NYSE:NOW - Get Free Report) last issued its quarterly earnings results on Wednesday, April 23rd. The information technology services provider reported $4.04 EPS for the quarter, topping analysts' consensus estimates of $3.78 by $0.26. ServiceNow had a return on equity of 17.11% and a net margin of 12.97%. The company had revenue of $3.09 billion for the quarter, compared to analysts' expectations of $3.09 billion. During the same quarter last year, the business earned $3.41 earnings per share. ServiceNow's revenue was up 18.6% on a year-over-year basis. Sell-side analysts forecast that ServiceNow will post 8.93 earnings per share for the current fiscal year.
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ServiceNow declared that its Board of Directors has initiated a share buyback program on Wednesday, January 29th that permits the company to repurchase $3.00 billion in outstanding shares. This repurchase authorization permits the information technology services provider to reacquire up to 1.3% of its stock through open market purchases. Stock repurchase programs are often a sign that the company's board believes its shares are undervalued.
Insider Transactions at ServiceNow
In related news, General Counsel Russell S. Elmer sold 191 shares of the business's stock in a transaction on Thursday, May 8th. The shares were sold at an average price of $985.00, for a total value of $188,135.00. Following the transaction, the general counsel now owns 4,332 shares in the company, valued at $4,267,020. The trade was a 4.22% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, Vice Chairman Nicholas Tzitzon sold 2,945 shares of the business's stock in a transaction on Tuesday, February 25th. The shares were sold at an average price of $923.72, for a total transaction of $2,720,355.40. Following the completion of the transaction, the insider now owns 3,649 shares in the company, valued at approximately $3,370,654.28. The trade was a 44.66% decrease in their position. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 5,619 shares of company stock worth $5,230,568. Company insiders own 0.38% of the company's stock.
Institutional Investors Weigh In On ServiceNow
Several hedge funds and other institutional investors have recently bought and sold shares of NOW. Avior Wealth Management LLC increased its stake in ServiceNow by 6.6% in the fourth quarter. Avior Wealth Management LLC now owns 633 shares of the information technology services provider's stock valued at $671,000 after purchasing an additional 39 shares in the last quarter. Secure Asset Management LLC bought a new stake in ServiceNow in the fourth quarter valued at $503,000. Montecito Bank & Trust bought a new stake in ServiceNow in the fourth quarter valued at $613,000. Brighton Jones LLC increased its stake in ServiceNow by 1.1% in the fourth quarter. Brighton Jones LLC now owns 2,753 shares of the information technology services provider's stock valued at $2,919,000 after purchasing an additional 30 shares in the last quarter. Finally, Impact Partnership Wealth LLC bought a new stake in ServiceNow in the fourth quarter valued at $241,000. 87.18% of the stock is owned by institutional investors.
About ServiceNow
(Get Free Report)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.
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