Morgan Stanley has recently reduced ServiceNow Inc (NOW) stock rating, as announced on October 21, 2024, according to Finviz. Earlier, on October 10, 2024, BMO Capital Markets had reiterated the stock to Outperform, setting a price target of $1025 for NOW stock. UBS also reiterated Buy rating with a price target of $1055. Additionally, Guggenheim reduced Sell rating on July 8, 2024, with a target price of $640. BMO Capital Markets analysts, in their report published on April 25, 2024, also reiterated Outperform rating and set a price target of $830 for ServiceNow Inc’s stock. Analyst ratings are significant because they provide insights into stock performance expectations, influencing investor decisions and market sentiment.
ServiceNow Inc (NOW) Stock Trading Recap
On Monday, ServiceNow Inc (NOW) stock saw a decline, ending the day at $918.34 which represents a decrease of $-3.41 or -0.37% from the prior close of $921.75. The stock opened at $902 and touched a low of $899.77 during the day, reaching a high of $918.63. The volume of shares traded was 1.41 million exceeding the average volume of 1.24 million.
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NOW Stock Performance and Moving Averages
In recent trading, ServiceNow Inc (NOW) stock price has shown some volatility, fluctuating -2.79% over the last five trades and -2.03% over the past 30 trades. This represents a notable shift from earlier in the year. Over the last six months, the stock has risen by 27.20%, and it has gained 19.96% in the previous three months. Currently, NOW is trading at 0.76%, 4.85%, and 17.16% relative to its 20-Day, 50-Day, and 200-Day Simple Moving Averages, respectively.
As of the latest trading close, NOW, a Technology sector stock, is trading -3.29% below its 52-week high but remains 74.18% above its 52-week low. The Average True Range (ATR) (14 days) of 20.37 highlights the stock’s average volatility, providing insight into how much the price typically fluctuates. This measure is crucial for understanding potential price swings and assessing overall market risk.
ServiceNow Inc’s Profitability and Valuation Ratios
ServiceNow Inc’s profitability metrics reveal strong financial health. The company currently boasts an operating margin of 10.78% and a profit margin of 11.51%, with a gross margin of 27.20%. The profit margin, also known as the revenue ratio or gross profit ratio, measures how efficiently a company converts sales into net income; higher margins indicate greater profitability.
In terms of valuation, ServiceNow Inc’s market capitalization stands at $189.18 billion. Market cap represents the total value of all outstanding shares and is a key indicator of a company’s market value. The stock’s price-to-earnings (P/E) ratio is 166.07, assessing the company’s valuation relative to its earnings. The forward P/E ratio, which uses projected earnings for the next financial year, is 55.53. Additionally, the Price-to-Sales Ratio is 19, reflecting the market’s valuation of the company’s sales, while the Price-to-Book Ratio is 21.81, comparing the market value to the company’s book value.
Understanding Insider Trading
Investors often prefer to invest in shares held by company insiders, as management is typically more aligned with the company’s success and shareholder interests. Currently, insiders own just 0.47% of ServiceNow Inc (NOW)’s shares, while financial institutions hold 89.30%.
Notable insider trades include Canney Jacqueline P, Chief People Officer at ServiceNow Inc (NOW), who sold 353 shares on Oct 16 ’24, at $924.96 each, totaling $0.33 million. On Aug 26 ’24, Tzitzon Nicholas, Chief Strat & Corp Affairs Ofc, sold 1857 shares for $829.68 each, amounting to $1.54 million. Additionally, on Aug 20 ’24, Canney Jacqueline P sold 992 shares at $835 each, generating $0.83 million.
