ServiceNow, Inc. (NYSE:NOW) Downgraded by Zacks Investment Research

Zacks Investment Research cut shares of ServiceNow, Inc. (NYSE:NOW) from a hold rating to a sell rating in a research report report published on Monday, October 30th.

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.”

A number of other brokerages have also commented on NOW. Argus reissued a buy rating and issued a $150.00 price target (up previously from $125.00) on shares of ServiceNow in a report on Friday, October 27th. Bank of America Corporation increased their price target on shares of ServiceNow from $136.00 to $140.00 and gave the stock a buy rating in a report on Wednesday, October 25th. Piper Jaffray Companies raised shares of ServiceNow from a neutral rating to an overweight rating in a report on Monday, October 23rd. Mizuho reissued a buy rating and issued a $140.00 price target on shares of ServiceNow in a report on Wednesday, October 25th. Finally, Stifel Nicolaus increased their price target on shares of ServiceNow from $110.00 to $120.00 and gave the stock a hold rating in a report on Thursday, October 26th. One analyst has rated the stock with a sell rating, six have assigned a hold rating, twenty-nine have given a buy rating and three have issued a strong buy rating to the company. The company has a consensus rating of Buy and a consensus price target of $130.50.

Shares of ServiceNow (NYSE:NOW) opened at $124.48 on Monday. ServiceNow has a 12-month low of $72.80 and a 12-month high of $129.56. The company has a debt-to-equity ratio of 2.10, a quick ratio of 1.66 and a current ratio of 1.66.

ServiceNow (NYSE:NOW) last posted its quarterly earnings results on Wednesday, October 25th. The information technology services provider reported $0.38 earnings per share (EPS) for the quarter, beating 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 22.11%. The company 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. The company’s quarterly revenue was up 39.3% compared to the same quarter last year. equities research analysts expect that ServiceNow will post -0.35 EPS for the current year.

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In related news, Director Frank Slootman sold 150,000 shares of the firm’s stock in a transaction that occurred on Friday, September 1st. The shares were sold at an average price of $115.38, for a total value of $17,307,000.00. Following the transaction, the director now owns 216,535 shares of the company’s stock, valued at $24,983,808.30. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, Director Frederic B. Luddy sold 165,000 shares of the firm’s stock in a transaction that occurred on Thursday, September 14th. The stock was sold at an average price of $116.03, for a total transaction of $19,144,950.00. Following the completion of the transaction, the director now directly owns 29,990 shares in the company, valued at approximately $3,479,739.70. The disclosure for this sale can be found here. Over the last 90 days, insiders have sold 963,849 shares of company stock valued at $113,641,884. 3.30% of the stock is owned by company insiders.

Institutional investors and hedge funds have recently bought and sold shares of the stock. SeaBridge Investment Advisors LLC purchased a new position in shares of ServiceNow in the third quarter worth approximately $118,000. Cornerstone Advisors Inc. boosted its holdings in shares of ServiceNow by 29.2% in the second quarter. Cornerstone Advisors Inc. now owns 1,085 shares of the information technology services provider’s stock worth $115,000 after buying an additional 245 shares during the last quarter. Barrett Asset Management LLC purchased a new position in shares of ServiceNow in the second quarter worth approximately $117,000. Rockefeller Financial Services Inc. purchased a new position in shares of ServiceNow in the third quarter worth approximately $138,000. Finally, Crow Point Partners LLC boosted its holdings in shares of ServiceNow by 8.8% in the second quarter. Crow Point Partners LLC now owns 1,320 shares of the information technology services provider’s stock worth $140,000 after buying an additional 107 shares during the last quarter. 98.78% of the stock is currently owned by institutional investors.

ServiceNow Company Profile

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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