ServiceNow, Inc. (NYSE:NOW) Shares Are Worth the Long-Term Chance

Stock analysts at Canaccord Genuity lifted target price for ServiceNow, Inc. (NYSE:NOW) shares but reaffirmed their Buy recommendation for the stock in their opinion released on January 30. The price target has been increased from $285 to $375. RBC Capital Mkts analysts have downgraded their rating of NOW shares from Top Pick to Outperform in a separate flash note to investors on January 06.

Let’s take a glimpse at some insider activity at ServiceNow, Inc. (NYSE:NOW) and observe the pattern. The earliest insider trade happened on 01/31/2020. MILLER JEFFREY A parted with a total of 7 thousand shares of the firm at average share price of $333.98. The total amount for the sale was set at $2.34 million. On completing this exchange, the Director account balance was 57.02 thousand shares. The stock grew 1.16 percent from that insider sale. On 01/31/2020, Schneider David, PRESIDENT, GLOBAL CUSTOMER OPS, did a sale of 2.37 thousand shares at a price of $339.5 per share. This got rid of 805.29 thousand shares from the insider’s fortune and the stock experienced a -0.48 percent retreat in price since the news became public. This exchange saw 36.8 thousand shares get out from the PRESIDENT, GLOBAL CUSTOMER OPS account. On 01/31/2020, Director Sands Anita M recorded a sale transaction valued at $3.46 million. The sale at $336.13 a share has eliminated 10.3 thousand shares from the insider’s portfolio position. Meanwhile, shares price witnessed 0.51 percent increase since the transaction reporting date. The company insider is left with 7.51 thousand shares remaining in the account. Desai Chirantan Jitendra, who works as Chief Product Officer at the company, performed a sale of 1.56 thousand shares in a transaction worth $472.57 thousand. The disposal recorded on 01/13/2020 was priced at $302.35 per share. The stock price soared 11.74 percent since the transaction. Desai Chirantan Jitendra currently holds a stake of 37.13 thousand in NOW stock which is worth $12.57 million after the insider selling.

ServiceNow, Inc. (NOW) is most likely going to rise 5.33 percent in the coming 12 months, as per price target approximations compiled by finviz. Nevertheless, they have set the price target at a $397 as 12-month high price target. This represents a whopping 17.27 percent increase from the current trading price of shares. The 52-week median price target given by the analysts is $370, which means a return possibility of 9.3 percent in comparison with the closing price of the stock of $338.53 in recent trading session. The lowest price set for the stock is $310 which is just above -8.43 percent from NOW share’s price at the end of session.

The stock is lingering around the initial support level of $346.15. After this, the following support is at the zone of $340.27. Up until the time the NOW stock hit levels beyond the current one, bulls should have no alarm. In terms of its momentum, the stock’s RSI hit 68.59 on the daily chart, and this may be a cause for concern. In case the price goes below $340.27 level on closing basis, there may be more profit booking with the stock growing weaker. Still, getting to the $356.28 level may cause a pull-back move approaching $360.52 mark.

In the recent trading session, ServiceNow, Inc. (NYSE:NOW) shares lost -3.83% or -13.5 points to reach at $338.53 with a thin trading volume of 1.415 million shares. It opened the trading session at $346, the shares rose to $354.6438 and dropped to $344.52, the range by which the price of stock traded the whole session. The company now has a market cap of $67.1 billion and currently has 190.49 million outstanding shares. ServiceNow, Inc. (NOW) stock has accumulated 20.93 percent of market value in 21 trading days.

NOW stock’s trailing 3-year beta is 1.41, meaning there will be a greater rate of return, although posing a higher risk. The part of a firm’s profit given to each outstanding share of regular stock was $3.16 share in the trailing 52 weeks. The stock’s value surged 24.69 percent year to date (YTD) compared to a rise of 56.36 percent in 52 week’s period. The firm’s shares are still trading -4.54 percent below its 1-year high of $354.64 and 58.2 percent up from 52-week low of $213.99. The average consensus ranking on the company is 1.9, on a ranging where 5 is equal to a consensus sell rating. In other words, the mean analyst recommendations are ranking this stock as a buy.

ServiceNow, Inc. (NOW) shares are trading at a P/E ratio of 106.44 times earnings posted in the trailing 12 months. The industry NOW deals with has an average P/E of 37.57. Its P/B ratio is standing at 29.98X compared to the 13.57 industry average. It is additionally sporting a 15.39 on the Price-to-Sales ratio, compared to the industry’s P/S average of 0.73. ServiceNow, Inc. has a 77% gross profit margin, with its operating margin around -1%. Alongside this, the company’s net profit margin currently stands at 0.1%.

Past records have indicated that shares in ServiceNow, Inc. rose on 21 different earnings reaction days and we have yet to see whether this trend will play out and remain in place when the company reports upcoming earnings. Investors will get the next hint of NOW’s Q1 earnings on April 22. Analysts are predicting revenue to climb 30.6 percent to $1.03B in the financial first quarter, while EPS will soar by about 44.78 percent to $0.97 per share. In the last quarter, it’s earnings of $0.67 per share came better than the $0.54225, adjusted, expected by Thomson Reuters consensus estimate. Revenue for the quarter was $951.77M, topping the $940.14M analysts had expected. Earnings are seen to rise by 78 percent this year, 30.68 percent in the coming year and the trend continues by 29.01 percent every year in the next 5 years.