ServiceNow’s (NOW) “Sell” Rating Reiterated at Guggenheim

ServiceNow (NYSE:NOW)‘s stock had its “sell” rating reissued by research analysts at Guggenheim in a research note issued to investors on Wednesday,Benzinga reports. They currently have a $716.00 target price on the information technology services provider’s stock. Guggenheim’s price target points to a potential downside of 12.28% from the stock’s current price.

Several other equities analysts have also issued reports on NOW. Raymond James decreased their price objective on ServiceNow from $1,200.00 to $1,000.00 and set an “outperform” rating for the company in a research report on Tuesday, April 8th. Mizuho dropped their target price on ServiceNow from $1,210.00 to $1,100.00 and set an “outperform” rating on the stock in a report on Tuesday, March 11th. William Blair restated an “outperform” rating on shares of ServiceNow in a research note on Friday, March 7th. Piper Sandler upped their price objective on ServiceNow from $1,000.00 to $1,200.00 and gave the stock an “overweight” rating in a research note on Monday, January 6th. Finally, JPMorgan Chase & Co. raised their target price on shares of ServiceNow from $950.00 to $1,250.00 and gave the company an “overweight” rating in a research note on Wednesday, January 29th. One analyst has rated the stock with a sell rating, four have assigned a hold rating and twenty-eight have assigned a buy rating to the company. Based on data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average target price of $1,059.80.

ServiceNow Trading Down 0.0 %

NYSE:NOW traded down $0.24 during trading hours on Wednesday, hitting $816.26. 281,492 shares of the stock were exchanged, compared to its average volume of 1,465,677. The company has a market capitalization of $168.97 billion, a P/E ratio of 119.57, a price-to-earnings-growth ratio of 4.51 and a beta of 1.08. ServiceNow has a twelve month low of $637.99 and a twelve month high of $1,198.09. The company has a quick ratio of 1.10, a current ratio of 1.10 and a debt-to-equity ratio of 0.15. The company’s 50 day moving average is $866.88 and its two-hundred day moving average is $972.23.

ServiceNow (NYSE:NOW) last posted its quarterly earnings results on Wednesday, January 29th. The information technology services provider reported $3.67 earnings per share for the quarter, meeting analysts’ consensus estimates of $3.67. ServiceNow had a return on equity of 17.11% and a net margin of 12.97%. On average, sell-side analysts anticipate that ServiceNow will post 8.93 earnings per share for the current fiscal year.

ServiceNow announced that its board has authorized a share 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 reacquire up to 1.3% of its shares through open market purchases. Shares buyback programs are often a sign that the company’s management believes its stock is undervalued.

Insiders Place Their Bets

In other news, insider Jacqueline P. Canney sold 455 shares of the company’s stock in a transaction on Thursday, January 16th. The shares were sold at an average price of $1,058.54, for a total value of $481,635.70. Following the completion of the sale, the insider now owns 3,027 shares of the company’s stock, valued at approximately $3,204,200.58. This represents a 13.07 % decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, Vice Chairman Nicholas Tzitzon sold 2,945 shares of the business’s stock in a transaction on Tuesday, February 25th. The stock was sold at an average price of $923.72, for a total transaction of $2,720,355.40. Following the completion of the sale, the insider now directly owns 3,649 shares of the company’s stock, valued at $3,370,654.28. This represents a 44.66 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 20,351 shares of company stock worth $20,050,076 in the last three months. 0.38% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On ServiceNow

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in NOW. Compagnie Lombard Odier SCmA boosted its holdings in shares of ServiceNow by 18.4% during the first quarter. Compagnie Lombard Odier SCmA now owns 147,157 shares of the information technology services provider’s stock worth $117,158,000 after purchasing an additional 22,864 shares during the period. Union Bancaire Privee UBP SA lifted its position in shares of ServiceNow by 16.5% in the 1st quarter. Union Bancaire Privee UBP SA now owns 55,427 shares of the information technology services provider’s stock worth $43,220,000 after purchasing an additional 7,865 shares during the period. Fifth Third Bancorp raised its stake in ServiceNow by 8.6% in the first quarter. Fifth Third Bancorp now owns 95,436 shares of the information technology services provider’s stock worth $75,980,000 after buying an additional 7,534 shares in the last quarter. Simon Quick Advisors LLC raised its position in shares of ServiceNow by 18.0% in the 1st quarter. Simon Quick Advisors LLC now owns 1,504 shares of the information technology services provider’s stock worth $1,197,000 after acquiring an additional 229 shares in the last quarter. Finally, Axecap Investments LLC boosted its position in shares of ServiceNow by 17.8% during the first quarter. Axecap Investments LLC now owns 5,118 shares of the information technology services provider’s stock valued at $4,075,000 after purchasing an additional 773 shares in the last quarter. 87.18% of the stock is currently owned by institutional investors.

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.