Shares of ServiceNow, Inc. (NYSE: NOW) increased by 1.1% on Tuesday, following an upgrade from Wall Street Zen. The research firm raised its rating on the stock from “hold” to “buy.” During trading, shares reached a peak of $830.90 before closing at $825.0490. Approximately 1,394,370 shares were traded, marking a decline of 15% from the average daily volume of 1,640,177 shares.
Analysts have shown a growing interest in ServiceNow, with several firms adjusting their price targets. On October 30, 2023, JPMorgan Chase & Co. raised its target from $1,020.00 to $1,075.00, maintaining an “overweight” rating. Similarly, UBS Group increased its target from $1,075.00 to $1,150.00 with a “buy” rating. Other notable adjustments included DA Davidson and The Goldman Sachs Group, both setting targets at $1,250.00. Conversely, Zacks Research downgraded the stock from “strong-buy” to “hold” on November 11, 2023.
Currently, ServiceNow holds a diverse range of ratings. One analyst has rated it as a “Strong Buy,” while thirty-one have issued “Buy” ratings, five have given a “Hold” rating, and one has rated it as a “Sell.” According to MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average target price of $1,149.67.
Institutional Investment Activity
Recent changes in holdings among institutional investors and hedge funds highlight continued interest in ServiceNow. For instance, Brighton Jones LLC increased its stake by 1.1% in the fourth quarter, now owning 2,753 shares valued at $2,919,000. Similarly, Mutual of America Capital Management LLC grew its position by 0.8% in the first quarter, holding 24,875 shares worth $19,804,000. Other notable increases include one8zero8 LLC, which raised its stake by 3.2%, and Nemes Rush Group LLC, which increased its holdings by 25.8%.
Currently, institutional investors and hedge funds own 87.18% of ServiceNow’s stock, showcasing a strong institutional backing for the company.
Company Performance and Upcoming Stock Split
ServiceNow recently reported its earnings results for the quarter ending on October 29, 2023. The company posted earnings of $4.82 per share, exceeding analysts’ consensus estimates of $4.21 by $0.61. Revenue for the quarter reached $3.41 billion, surpassing expectations of $3.35 billion and reflecting a 21.8% increase year-over-year.
The company will undergo a 5-for-1 stock split, set to take place on December 5, 2023. This split was announced on October 29, 2023, with new shares issued after the market closes on December 4, 2023.
ServiceNow continues to provide intelligent workflow automation solutions across various regions, including North America, Europe, and Asia Pacific. As the company grows, it remains a key player in the information technology services sector, with a market capitalization of $171.61 billion and a P/E ratio of 99.76. Analysts predict that ServiceNow will post an earnings per share of 8.93 for the current year, indicating continued confidence in its growth prospects.
