ServiceNow (NYSE:NOW) Stock Price Drops 7.3% Following Insider Selling

ServiceNow, Inc.’s share price fell 7.3%. (NYSE:NOW – Get Rating) up 7.3% during trading on Thursday after an insider sold shares in the company. The company traded as low as $337.04 and last traded at $342.00. About 33,288 shares changed hands in mid-day trading, a drop of 98% from the average daily volume of 1,823,121 shares. The stock previously closed at $369.13. Specifically, insider Paul John Smith sold 130 shares of the company’s stock in a transaction on Monday, August 15th. The shares were sold at an average price of $502.81, for a total value of $65,365.30. Following the completion of the sale, the insider now owns 2,157 shares in the company, valued at approximately $1,084,561.17. The transaction was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. In other ServiceNow news, General Counsel Russell S. Elmer sold 178 shares of the firm’s stock in a transaction dated Monday, August 15th. The shares were sold at an average price of $502.00, for a total transaction of $89,356.00. Following the sale, the general counsel now directly owns 9,293 shares of the company’s stock, valued at approximately $4,665,086. The transaction was disclosed in a filing with the Securities & Exchange Commission, available through the SEC website. Also, insider Paul John Smith sold 130 shares of the stock in a transaction dated Monday, August 15th. The stock was sold at an average price of $502.81, for a total transaction of $65,365.30. Following the transaction, the insider now owns 2,157 shares in the company, valued at $1,084,561.17. The disclosure for this sale can be found here. In the last quarter, insiders sold 32,922 shares of company stock valued at $14,410,327. 0.28% of the stock is currently owned by insiders.

Wall Street Analysts weigh in

NOW has been the subject of several recent research reports. Citigroup dropped their price objective on shares of ServiceNow from $600.00 to $575.00 and set a “buy” rating for the company in a research report on Thursday, July 28th. BMO Capital Markets cut their price target on ServiceNow from $595.00 to $520.00 in a research note on Friday, July 15th. JMP Securities cut their price target on ServiceNow from $705.00 to $553.00 and set a “market outperform” rating on the stock in a research note on Thursday, July 28th. Sanford C. Bernstein assumed coverage on shares of ServiceNow in a research note on Tuesday, July 19th. They set an “outperform” rating and a $646.00 price objective on the stock. Finally, Guggenheim initiated coverage on shares of ServiceNow in a research note on Friday, August 12th. They set a “neutral” rating and a $510.00 price objective on the stock. Two investment analysts have rated the stock with a sell rating, four have issued a hold rating and twenty-eight have given a buy rating to the company. According to data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and an average target price of $587.56.

ServiceNow Stock Drops 6.1%

The company has a debt-to-equity ratio of 0.35, a current ratio of 1.12 and a quick ratio of 1.12. The company has a market capitalization of $70.00 billion, a P/E ratio of 405.64, a PEG ratio of 7.76 and a beta of 0.98. The company has a 50-day moving average of $439.08 and a 200-day moving average of $462.86.

ServiceNow (NYSE:NOW – Get Rating) last released its quarterly earnings data on Wednesday, July 27th. The information technology services provider reported $0.20 EPS for the quarter, topping the consensus estimate of $0.12 by $0.08. ServiceNow has a net margin of 2.79% and a return on equity of 7.22%. The business had revenue of $1.75 billion in the quarter, compared to analyst estimates of $1.76 billion. During the same period last year, the business posted $0.38 earnings per share. ServiceNow’s quarterly revenue was up 24.3% compared to the same quarter last year. As a group, equities analysts expect ServiceNow, Inc. will post 1.73 EPS for the current year.

Hedge Fund Weighs In On Service Now

Several large investors have recently made changes to their positions in NOW. The Vanguard Group Inc. grew its position in ServiceNow by 1.9% in the 1st quarter. The Vanguard Group Inc. now owns 16,295,607 shares of the information technology services provider’s stock valued at $9,074,862,000 after buying an additional 306,106 shares during the period. Powered by BlackRock Inc. its holdings in ServiceNow by 0.4% in the 4th quarter. BlackRock Inc. now owns 16,190,700 shares of the information technology services provider’s stock valued at $10,509,544,000 after buying an additional 65,623 shares during the period. Polen Capital Management LLC lifted its stake in ServiceNow by 2.1% in the 1st quarter. Polen Capital Management LLC now owns 3,219,600 shares of the information technology services provider’s stock valued at $1,792,963,000 after buying an additional 67,385 shares during the last quarter. Capital International Investors lifted its stake in ServiceNow by 18.1% in the 1st quarter. Capital International Investors now owns 3,207,748 shares of the information technology services provider’s stock valued at $1,786,783,000 after purchasing an additional 491,835 shares in the last quarter. Finally, Sands Capital Management LLC lifted its stake in ServiceNow by 3.3% in the 1st quarter. Sands Capital Management LLC now owns 2,735,070 shares of the information technology services provider’s stock valued at $1,523,133,000 after buying an additional 87,874 shares during the last quarter. 87.49% of the stock is currently owned by hedge funds and other institutional investors.

About ServiceNow

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ServiceNow, Inc provides enterprise cloud computing solutions that define, build, integrate, manage, and automate services for businesses worldwide. It powers the Now platform for workflow automation, artificial intelligence, machine learning, robotic process automation, performance analytics, electronic service catalogs and portals, configuration management systems, data benchmarking, encryption, and collaboration and development tools.

Further Reading

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