ServiceNow (NYSE:NOW) Shares Down 2.4% Following Insider Selling

ServiceNow, Inc. (NYSE:NOW)’s share price traded down 2.4% during trading on Thursday following insider selling activity. The stock traded as low as $958.87 and last traded at $963.60. 412,154 shares traded hands during trading, a decline of 74% from the average session volume of 1,605,637 shares. The stock had previously closed at $987.14.

Specifically, CEO William R. Mcdermott sold 384 shares of the stock in a transaction on Tuesday, February 18th. The shares were sold at an average price of $986.64, for a total transaction of $378,869.76. Following the completion of the sale, the chief executive officer now owns 6,614 shares of the company’s stock, valued at $6,525,636.96. This represents a 5.49 % decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, insider Paul John Smith sold 2,404 shares of ServiceNow stock in a transaction dated Tuesday, February 18th. The shares were sold at an average price of $980.05, for a total value of $2,356,040.20. Following the completion of the sale, the insider now directly owns 6,244 shares in the company, valued at $6,119,432.20. This represents a 27.80 % decrease in their position. The disclosure for this sale can be found here. In related news, insider Paul John Smith sold 1,184 shares of the stock in a transaction dated Friday, February 14th. The stock was sold at an average price of $980.08, for a total transaction of $1,160,414.72. Following the completion of the transaction, the insider now directly owns 4,204 shares in the company, valued at approximately $4,120,256.32. This trade represents a 21.97 % decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink.

Wall Street Analysts Forecast Growth

A number of research analysts recently weighed in on the stock. Cantor Fitzgerald started coverage on shares of ServiceNow in a research report on Friday, January 17th. They issued an “overweight” rating and a $1,332.00 target price for the company. Guggenheim reaffirmed a “sell” rating and issued a $716.00 target price on shares of ServiceNow in a research report on Wednesday, January 22nd. Jefferies Financial Group lowered their price target on ServiceNow from $1,300.00 to $1,250.00 and set a “buy” rating on the stock in a research report on Thursday, January 30th. Royal Bank of Canada reissued an “outperform” rating and issued a $1,210.00 target price on shares of ServiceNow in a research note on Thursday, January 30th. Finally, StockNews.com downgraded shares of ServiceNow from a “buy” rating to a “hold” rating in a research report on Tuesday, February 11th. One analyst has rated the stock with a sell rating, four have assigned a hold rating, twenty-five have given a buy rating and two have assigned a strong buy rating to the company. According to MarketBeat, the company presently has an average rating of “Moderate Buy” and a consensus target price of $1,129.72.

ServiceNow Stock Performance

The company has a current ratio of 1.10, a quick ratio of 1.10 and a debt-to-equity ratio of 0.15. The firm has a market capitalization of $198.36 billion, a price-to-earnings ratio of 140.91, a PEG ratio of 4.64 and a beta of 0.99. The stock’s 50-day moving average is $1,061.97 and its 200-day moving average is $976.06.

ServiceNow (NYSE:NOW) last announced its quarterly earnings results on Wednesday, January 29th. The information technology services provider reported $3.67 EPS 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, analysts predict that ServiceNow, Inc. will post 8.93 EPS for the current fiscal year.

ServiceNow announced that its board has authorized 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 repurchase up to 1.3% of its stock through open market purchases. Stock buyback programs are usually an indication that the company’s management believes its stock is undervalued.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently made changes to their positions in the company. Quarry LP acquired a new position in ServiceNow in the 4th quarter valued at approximately $27,000. Atala Financial Inc bought a new stake in shares of ServiceNow in the fourth quarter worth $28,000. Truvestments Capital LLC bought a new position in ServiceNow during the 3rd quarter worth $30,000. LFA Lugano Financial Advisors SA acquired a new position in ServiceNow during the 4th quarter worth about $32,000. Finally, FPC Investment Advisory Inc. grew its position in shares of ServiceNow by 725.0% in the 4th quarter. FPC Investment Advisory Inc. now owns 33 shares of the information technology services provider’s stock valued at $34,000 after buying an additional 29 shares during the last quarter. Institutional investors and hedge funds own 87.18% of the company’s stock.

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.