The stock of ServiceNow Inc. (NYSE:NOW) increased by $14.11 on Friday to finish at $563.65, up 2.57 percent. The last five days have seen an average of 893,380 shares of common stock traded. 23 times new highs were reached in the current year, with a gain of $175.38. The average number of shares traded over the last 20 days was 1,054,470, while the average volume over the last 50 days totaled 1,174,922.
NOW stock appreciated 0.67% since last month. On 08/18/23, the company’s shares reached a one-month low of $532.54. The stock touched a high of $614.36 on 07/19/23, after rallying from a low of $337.00 in 52 weeks. The price of NOW stock has risen by 45.17% or $175.38 this year, reaching a new high 23 times. Still, the stock price is down -8.25% from the 52-week high.
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Insider Transactions
NOW stock investors should be aware that ServiceNow Inc. (NOW) stock had its last reported insider trading activity 7 days ago on Aug 21. On Aug 21, Chief Financial Officer Mastantuono Gina sold 29 shares at $550.00 each. This transaction resulted in the insider making $15,950. On Aug 18, Smith Paul John sold 630 shares at a price of US$540.37. After the transaction, the insider now owns 3,144 shares. General Counsel ELMER RUSSELL S had earlier sold 91 shares on Aug 18 for $535.10 a share. The transaction was completed for $48,694.
Valuation Metrics
ServiceNow Inc. (NOW) has a trailing price-to-earnings (P/E) ratio of 81.14. Beta for the stock is 1.02. There are also a few other valuation ratios worth considering, including the trailing price-to-sales (P/S) ratio of 13.98, the price-to-book (PB) ratio of 16.60, and the price-to-cash flow ratio of 48.61.
Financial Health
For the three months ended June 29, ServiceNow Inc.’s quick ratio was 1.10, while its current ratio was 1.10, indicating its ability to pay off its debt. The company’s long-term debt to equity ratio for the quarter ending June 29 is 0.21, and the total debt to equity ratio is 0.21. As far as profitability goes, gross margin for the trailing twelve months is 78.50% percent. ServiceNow Inc.’s EBITDA margin for the year ended June 29 was 9.62%, whereas its operating margin stood at 6.30% for the same period. Based on annual data, it had gross profit of $5.67 billion and revenue of $7.25 billion.
Investors will also look at the performance of the company’s management in order to determine the potential profitability of their investment. NOW’s return on assets (ROA) during the last 12 months has been 10.80%. There was a 4.30% return on investment (ROI) in the past year. In the meantime, the return on equity (ROE) for the last 12 months was 25.80%.
Earnings Surprise
According to ServiceNow Inc.’s quarterly financial report for the quarter that ended June 29. A higher net income was reported in the quarter under review than the previous quarter. Net income for the quarter came in at $2.15 billion, while revenues rose by 18.51% to $2.1 billion. It was predicted that ServiceNow Inc.’s quarterly earnings would be $2.37, but it ended up being $2.05, beating the consensus by 15.60%. EBITDA was $365.0 million for the quarter. At the end of ServiceNow Inc.’s most recent quarter ended June 29, its liabilities totaled 8.0 billion, while its total debt was $2.21 billion. Equity owned by shareholders amounts to $204.0 million.
Technical Picture
Here’s a quick look at ServiceNow Inc.’s (NOW) price momentum from a technical perspective. As of 25 August, the RSI 9-day stood at 53.53%, suggesting the stock is Neutral, with a 29.91% historical volatility rate.
The stochastic %K and %D were 62.70% and 63.48% respectively, while the average true range (ATR) was 15.16. Based on the 14-day stochastic reading of 70.02%, the RSI (14) reading is 51.90%. On the 9-day MACD Oscillator, the stock is at 5.74, and the 14-day reading is at 5.13.
Analyst Ratings
In its analyst report released on June 14, 2023, Needham began covering ServiceNow Inc. (NYSE: NOW). The stock was rated as a Buy by the brokerage firm. Analysts have assigned ServiceNow Inc. (NOW) an Buy rating. NOW is a stock that is recommended for selling by 0 brokerage firms, while 5 companies recommend holding. The stock is underweighted by 0 analysts. Among the analysts who rate the stock, 4 rates it overweight and 29 others recommend it as a buy.
What is NOW’s price target for the next 12 months?
The current consensus forecast for the stock is between $575.00 and $734.00, with a median target price of $650.00. In analyzing these forecasts, the average price target given by analysts for ServiceNow Inc. (NOW) is $644.33.
