ServiceNow, Inc. (NOW) Cut to “Sell” at Zacks Investment Research
ServiceNow, Inc. (NYSE:NOW) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research report issued on Monday.
According to Zacks, “ServiceNow is facing stiff competition in the non-ITSM markets from well-established players like Oracle and salesforce.com. Additionally, a declining the professional service business is hurting the company’s top-line growth, which is a concern. Neverthless, third-quarter results reflected strong year-over-year improvement, as the company’s top and bottom-line figures topped management’s guidance. The company is benefiting from growing adoption of its platform and tools in the Global 2000 (G2K) companies, as defined by Forbes. On a year-to-date basis, the company has outperformed the industry.”
Several other brokerages also recently issued reports on NOW. OTR Global downgraded shares of ServiceNow to a “positive” rating in a research note on Friday, July 14th. Morgan Stanley reiterated an “overweight” rating and issued a $134.00 target price (up previously from $124.00) on shares of ServiceNow in a research note on Thursday, July 20th. Citigroup Inc. reiterated a “buy” rating and issued a $135.00 target price (up previously from $109.00) on shares of ServiceNow in a research note on Saturday, July 22nd. Royal Bank Of Canada upped their target price on shares of ServiceNow from $110.00 to $126.00 and gave the stock a “top pick” rating in a research note on Monday, July 24th. Finally, BidaskClub downgraded shares of ServiceNow from a “strong-buy” rating to a “buy” rating in a research note on Tuesday, July 25th. One research analyst has rated the stock with a sell rating, six have issued a hold rating, twenty-nine have issued a buy rating and three have given a strong buy rating to the company. The stock currently has an average rating of “Buy” and an average target price of $126.57.
ServiceNow (NOW) traded down 0.86% during midday trading on Monday, reaching $124.65. 503,048 shares of the company’s stock traded hands. The firm’s 50-day moving average is $119.14 and its 200 day moving average is $107.89. ServiceNow has a 52-week low of $72.80 and a 52-week high of $129.56. The firm’s market cap is $21.28 billion.
ServiceNow (NYSE:NOW) last posted its quarterly earnings data on Wednesday, October 25th. The information technology services provider reported $0.38 EPS for the quarter, topping the consensus estimate of $0.32 by $0.06. ServiceNow had a negative net margin of 8.68% and a negative return on equity of 23.64%. The business had revenue of $498.20 million for the quarter, compared to analyst estimates of $491.62 million. During the same quarter in the previous year, the firm posted $0.23 earnings per share. ServiceNow’s quarterly revenue was up 39.3% on a year-over-year basis. Equities research analysts expect that ServiceNow will post $1.19 earnings per share for the current fiscal year.
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In other news, CRO David Schneider sold 16,349 shares of the stock in a transaction on Monday, August 14th. The shares were sold at an average price of $107.25, for a total value of $1,753,430.25. The sale was disclosed in a filing with the SEC, which is available at this link. Also, Director Frank Slootman sold 252,211 shares of the stock in a transaction on Wednesday, August 2nd. The shares were sold at an average price of $109.19, for a total transaction of $27,538,919.09. Following the completion of the sale, the director now directly owns 356,287 shares in the company, valued at approximately $38,902,977.53. The disclosure for this sale can be found here. In the last three months, insiders sold 1,172,353 shares of company stock worth $133,460,161. Insiders own 3.30% of the company’s stock.
A number of hedge funds have recently bought and sold shares of the stock. Westpac Banking Corp increased its stake in ServiceNow by 565.8% in the 3rd quarter. Westpac Banking Corp now owns 64,144 shares of the information technology services provider’s stock worth $7,539,000 after buying an additional 54,510 shares during the period. Victory Capital Management Inc. increased its stake in ServiceNow by 203.8% in the 3rd quarter. Victory Capital Management Inc. now owns 493,243 shares of the information technology services provider’s stock worth $57,971,000 after buying an additional 330,883 shares during the period. Crossmark Global Holdings Inc. purchased a new position in ServiceNow in the 3rd quarter worth about $482,000. Raymond James Financial Services Advisors Inc. increased its stake in ServiceNow by 12.8% in the 3rd quarter. Raymond James Financial Services Advisors Inc. now owns 50,000 shares of the information technology services provider’s stock worth $5,877,000 after buying an additional 5,693 shares during the period. Finally, Pictet Asset Management Ltd. increased its stake in ServiceNow by 8.4% in the 3rd quarter. Pictet Asset Management Ltd. now owns 586,700 shares of the information technology services provider’s stock worth $68,955,000 after buying an additional 45,400 shares during the period.
ServiceNow, Inc is provider of enterprise cloud computing solutions that define, structure, manage and automate services for global enterprises. The Company offers a set of cloud-based services that automate workflow within and between departments in an enterprise. It provides workflow solutions, and focuses on service management for customer support, human resources, security operations and other enterprise departments.
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