ServiceNow Inc. (NYSE:NOW) closed Wednesday at $401.43 per share, down from $411.20 a day earlier. While ServiceNow Inc. has underperformed by -2.38%, investors are advised to look at stock chart patterns for technical insight. Within its last year performance, NOW fell by -38.64%, with highs and lows ranging from $707.60 to $406.47, whereas the simple moving average fell by -21.93% in the last 200 days.
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On August 12, 2022, Guggenheim started tracking ServiceNow Inc. (NYSE: NOW) recommending Neutral. A report published by Bernstein on July 20, 2022, Initiated its previous ‘Outperform’ rating for NOW. Wells Fargo also rated NOW shares as ‘Overweight’, setting a target price of $600 on the company’s shares in an initiating report dated May 18, 2022. Piper Sandler January 27, 2022d its ‘Neutral’ rating to ‘Overweight’ for NOW, as published in its report on January 27, 2022. Oppenheimer’s report from January 27, 2022 suggests a price prediction of $660 for NOW shares, giving the stock a ‘Outperform’ rating. Morgan Stanley also rated the stock as ‘Overweight’.
Analysis of ServiceNow Inc. (NOW)
Further, the quarter-over-quarter increase in sales is 24.30%, showing a positive trend in the upcoming months.
There are several well-rounded types of analysis and research techniques that can be used to gain a clear view of ServiceNow Inc.’s future performance, with equity being one of the most critical indicators. The goal here is to ensure that your current return on equity of 4.80% is sufficient for you to turn a profit off your investment. Taking into account the quick ratio of the company, currently set at 1.10, you can see that the company can cover any debts it may have, which can easily be seen in the annual report of the company.
As an indicator of volatility for any stock, average volume can also be very valuable, and NOW is recording an average volume of 1.57M. On a monthly basis, the volatility of the stock is set at 3.15%, whereas on a weekly basis, it is put at 3.45%, with a loss of -12.25% over the past seven days. Furthermore, long-term investors anticipate a median target price of $557.58, showing growth from the present price of $401.43, which can serve as yet another indication of whether NOW is worth investing in or should be passed over.
How Do You Analyze ServiceNow Inc. Shares?
ServiceNow Inc. (NOW) is based in the USA and is one of the most prominent companies operating in the Software – Application market. When comparing ServiceNow Inc. shares with other companies under Technology, the P/E value is an influential factor to note. This is because it represents an indication of the future growth of the company in terms of investors’ expectations. Ultimately, the value of the latter should demonstrate steady, rapid growth, which is an accurate measure of the company’s progress. In addition to the value of 443.08, there is a growth in quarterly earnings of -66.20%.
Apart from looking at the fundamentals, you should also pay attention to the number of company employees who own shares. This is because the values should be in line with investors’ expectations. As such, the current holdings of company stock inside the company are set at 0.10%. This can enable you to see the extent to which executives own the company’s stock. As opposed to executive stock, institutional ownership accounts for 90.90% of the company’s shares, contributing to an indication of company value, since large shareholders may signify strength within the organization.
Are institutional investors increasing their holdings in NOW shares?
The recent increase in stakes in NOW appears to be a result of several institutional investors and hedge funds increasing their positions. The Vanguard Group, Inc.’s position in NOW has increased by 1.52% in the first quarter. The company now owns 15,723,059 shares of the stock, with a value of $6.83 billion, following the purchase of 235,927 additional shares during the last quarter. T. Rowe Price Associates, Inc. made another decreased to its shares in NOW during the first quarter, downing its stake by -1.40%. During the last quarter, the company picked up -199,208 additional shares for a total stake of worth $6.09 billion, bringing number of shares owned by the company to 14,017,878.
During the first quarter, BlackRock Fund Advisors added a 96,023 position in NOW. SSgA Funds Management, Inc. sold an additional 78723.0 shares in the last quarter, decreasing its holdings by -1.00%, now holding 7.79 million shares worth $3.38 billion. At the end of the first quarter, Capital Research & Management Co increased its NOW holdings by 4.80% and now holds 4.85 million NOW shares valued at $2.11 billion with the added 0.22 million shares during the period. NOW shares are owned by institutional investors to the tune of 90.90% at present.