ServiceNow’s (NOW) Sell Rating Reaffirmed at Guggenheim

ServiceNow (NYSE:NOW)‘s stock had its “sell” rating restated by investment analysts at Guggenheim in a report issued on Wednesday, January 22nd,Benzinga reports. They currently have a $716.00 price objective on the information technology services provider’s stock. Guggenheim’s price target would suggest a potential downside of 29.68% from the stock’s previous close.

A number of other research analysts also recently issued reports on NOW. Mizuho boosted their price target on shares of ServiceNow from $1,070.00 to $1,210.00 and gave the stock an “outperform” rating in a research report on Friday, December 13th. Royal Bank of Canada boosted their price objective on ServiceNow from $1,045.00 to $1,210.00 and gave the company an “outperform” rating in a report on Friday, January 3rd. Morgan Stanley cut ServiceNow from an “overweight” rating to an “equal weight” rating and increased their target price for the stock from $900.00 to $960.00 in a report on Monday, October 21st. Canaccord Genuity Group boosted their price target on shares of ServiceNow from $1,000.00 to $1,200.00 and gave the company a “buy” rating in a research note on Friday, December 20th. Finally, Cantor Fitzgerald started coverage on shares of ServiceNow in a report on Friday, January 17th. They set an “overweight” rating and a $1,332.00 price objective for the company. One analyst has rated the stock with a sell rating, three have issued a hold rating, twenty-five have assigned a buy rating and two have issued a strong buy rating to the company. According to MarketBeat, ServiceNow has an average rating of “Moderate Buy” and an average target price of $1,129.93.

ServiceNow Stock Performance

NYSE NOW opened at $1,018.14 on Wednesday. The company has a debt-to-equity ratio of 0.16, a quick ratio of 1.13 and a current ratio of 1.13. ServiceNow has a fifty-two week low of $637.99 and a fifty-two week high of $1,198.09. The stock has a market cap of $209.74 billion, a PE ratio of 150.00, a PEG ratio of 5.19 and a beta of 0.99. The firm’s fifty day moving average price is $1,084.47 and its two-hundred day moving average price is $952.71.

ServiceNow (NYSE:NOW) last issued its quarterly earnings data on Wednesday, January 29th. The information technology services provider reported $3.67 earnings per share for the quarter, hitting the consensus estimate of $3.67. ServiceNow had a net margin of 12.97% and a return on equity of 17.56%. On average, equities analysts expect that ServiceNow will post 8.98 EPS for the current fiscal year.

ServiceNow declared that its board has authorized a stock buyback plan on Wednesday, January 29th that authorizes the company to buyback $3.00 billion in shares. This buyback authorization authorizes the information technology services provider to purchase up to 1.3% of its shares through open market purchases. Shares buyback plans are typically a sign that the company’s board believes its stock is undervalued.

Insider Buying and Selling at ServiceNow

In other news, insider Jacqueline P. Canney sold 455 shares of the business’s stock in a transaction on Thursday, January 16th. The stock was sold at an average price of $1,058.54, for a total value of $481,635.70. Following the completion of the transaction, the insider now directly owns 3,027 shares of the company’s stock, valued at approximately $3,204,200.58. The trade was a 13.07 % decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, Director Anita M. Sands sold 2,229 shares of the firm’s stock in a transaction on Monday, November 25th. The stock was sold at an average price of $1,064.60, for a total transaction of $2,372,993.40. Following the completion of the transaction, the director now directly owns 11,000 shares of the company’s stock, valued at approximately $11,710,600. This represents a 16.85 % decrease in their position. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 20,731 shares of company stock worth $21,016,751. Insiders own 0.25% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds have recently modified their holdings of the company. Truvestments Capital LLC purchased a new position in shares of ServiceNow during the 3rd quarter valued at approximately $30,000. DT Investment Partners LLC grew its position in ServiceNow by 77.3% in the third quarter. DT Investment Partners LLC now owns 39 shares of the information technology services provider’s stock worth $35,000 after acquiring an additional 17 shares during the period. Heck Capital Advisors LLC purchased a new stake in ServiceNow in the fourth quarter valued at approximately $37,000. Stonebridge Financial Group LLC purchased a new position in shares of ServiceNow in the fourth quarter valued at approximately $37,000. Finally, Semmax Financial Advisors Inc. purchased a new position in ServiceNow in the second quarter valued at $39,000. 87.18% of the stock is owned by institutional investors and hedge funds.

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.