ServiceNow (NYSE:NOW) Posts Quarterly Earnings Results, Misses Estimates By $1.74 EPS

ServiceNow (NYSE:NOW) announced its quarterly earnings results on Wednesday. The information technology services provider reported $1.93 earnings per share for the quarter, missing analysts’ consensus estimates of $3.67 by ($1.74), Zacks reports. ServiceNow had a return on equity of 16.03% and a net margin of 12.77%.

ServiceNow Stock Down 2.2 %

Shares of NYSE:NOW traded down $25.53 on Wednesday, reaching $1,144.86. The company had a trading volume of 2,458,249 shares, compared to its average volume of 1,387,750. The company has a quick ratio of 1.13, a current ratio of 1.13 and a debt-to-equity ratio of 0.16. The stock has a 50-day moving average price of $1,082.77 and a 200 day moving average price of $950.94. The stock has a market capitalization of $235.84 billion, a P/E ratio of 178.05, a P/E/G ratio of 5.11 and a beta of 0.99. ServiceNow has a twelve month low of $637.99 and a twelve month high of $1,198.09.

Wall Street Analyst Weigh In

Several equities research analysts have weighed in on NOW shares. Citigroup increased their target price on ServiceNow from $1,071.00 to $1,432.00 and gave the stock a “buy” rating in a research report on Monday. Morgan Stanley cut shares of ServiceNow from an “overweight” rating to an “equal weight” rating and raised their target price for the company from $900.00 to $960.00 in a research note on Monday, October 21st. TD Cowen upped their price objective on ServiceNow from $1,025.00 to $1,300.00 and gave the company a “buy” rating in a report on Tuesday, December 10th. Evercore ISI raised their price objective on shares of ServiceNow from $950.00 to $1,000.00 and gave the company an “outperform” rating in a research report on Thursday, October 24th. Finally, Wells Fargo & Company boosted their target price on shares of ServiceNow from $1,150.00 to $1,250.00 and gave the stock an “overweight” rating in a report on Thursday, December 5th. One analyst has rated the stock with a sell rating, three have assigned a hold rating, twenty-five have given a buy rating and two have given a strong buy rating to the company’s stock. According to data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $1,116.14.

Insider Transactions at ServiceNow

In related news, General Counsel Russell S. Elmer sold 1,867 shares of the firm’s stock in a transaction on Friday, November 15th. The stock was sold at an average price of $1,023.97, for a total transaction of $1,911,751.99. Following the completion of the sale, the general counsel now directly owns 6,843 shares of the company’s stock, valued at $7,007,026.71. This trade represents a 21.44 % decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, CEO William R. Mcdermott sold 12,271 shares of the business’s stock in a transaction on Tuesday, November 19th. The stock was sold at an average price of $997.67, for a total value of $12,242,408.57. Following the completion of the transaction, the chief executive officer now directly owns 2,595 shares in the company, valued at approximately $2,588,953.65. This represents a 82.54 % decrease in their position. The disclosure for this sale can be found here. In the last ninety days, insiders sold 20,731 shares of company stock valued at $21,016,751. Corporate insiders own 0.25% 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.