ServiceNow Inc. [NYSE: NOW] gained 0.20% or 0.88 points to close at $431.21 with a heavy trading volume of 2454808 shares. The company report on August 7, 2020 that ServiceNow Prices $1.5 Billion Offering of Senior Notes.
ServiceNow, Inc. (NYSE: NOW) (“ServiceNow”) today announced that it has priced a public offering of $1.5 billion aggregate principal amount of 1.400% senior notes due 2030 (the “Notes”). The Notes will be senior unsecured obligations of ServiceNow and will accrue interest payable semiannually in arrears on March 1 and September 1 of each year, beginning on March 1, 2021. The Notes will mature on September 1, 2030. The offering is expected to close on August 11, 2020, subject to customary closing conditions.
ServiceNow estimates that the net proceeds from the offering will be approximately $1.481 billion after deducting the underwriting discount and estimated offering expenses payable by ServiceNow. ServiceNow expects to use the net proceeds from the offering of the Notes (i) to repurchase for cash up to $500 million aggregate principal amount of its outstanding 0% convertible senior notes due 2022 (the “2022 Convertible Notes”), and (ii) for working capital and other general corporate purposes. Pending the application of the net proceeds, ServiceNow expects to invest the net proceeds in short-term, interest-bearing instruments or other investment-grade securities.
It opened the trading session at $432.04, the shares rose to $439.2877 and dropped to $423.714, the range by which the price of stock traded the whole day. The daily chart for NOW points out that the company has recorded 26.43% gains over the past six months. However, it is still -101.51% lower than its most recent low trading price.
If we look at the average trading volume of 1.78M shares, NOW reached to a volume of 2454808 in the most recent trading day, which is why market watchdogs consider the stock to be active.
Here is what top equities market gurus are saying about ServiceNow Inc. [NOW]:
Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for NOW shares is $468.03 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on NOW stock is a recommendation set at 1.90. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.
Jefferies have made an estimate for ServiceNow Inc. shares, keeping their opinion on the stock as Buy, with their previous recommendation back on June 23, 2020. While these analysts kept the previous recommendation, Piper Sandler raised their target price from $310 to $360. The new note on the price target was released on April 30, 2020, representing the official price target for ServiceNow Inc. stock. Previously, the target price had yet another raise to $300, while Robert W. Baird analysts kept a Neutral rating on NOW stock.
The Average True Range (ATR) for ServiceNow Inc. is set at 14.27, with the Price to Sales ratio for NOW stock in the period of the last 12 months amounting to 20.87. The Price to Book ratio for the last quarter was 33.27, with the Price to Cash per share for the same quarter was set at 12.24. Price to Free Cash Flow for NOW in the course of the last twelve months was 73.07 with Quick ratio for the last quarter at 1.20.
Trading performance analysis for NOW stock
ServiceNow Inc. [NOW] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -1.82. With this latest performance, NOW shares gained by 1.14% in over the last four-week period, additionally plugging by 26.43% over the last 6 months – not to mention a rise of 61.44% in the past year of trading.
Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for NOW stock in for the last two-week period is set at 52.01, with the RSI for the last a single of trading hit 49.73, and the three-weeks RSI is set at 54.76 for ServiceNow Inc. [NOW]. The present Moving Average for the last 50 days of trading for this stock 412.00, while it was recorded at 435.08 for the last single week of trading, and 329.64 for the last 200 days.
ServiceNow Inc. [NOW]: A deeper dive into fundamental analysis
Operating Margin for any stock indicates how profitable investing would be, and ServiceNow Inc. [NOW] shares currently have an operating margin of +1.22 and a Gross Margin at +72.12. ServiceNow Inc.’s Net Margin is presently recorded at +18.11.
Return on Total Capital for NOW is now 1.67, given the latest momentum, and Return on Invested Capital for the company is 25.17. Return on Equity for this stock inclined to 38.70, with Return on Assets sitting at 12.66. When it comes to the capital structure of this company, ServiceNow Inc. [NOW] has a Total Debt to Total Equity ratio set at 53.14. Additionally, NOW Total Debt to Total Capital is recorded at 34.70, with Total Debt to Total Assets ending up at 18.78. Long-Term Debt to Equity for the company is recorded at 50.67, with the Long-Term Debt to Total Capital now at 33.09.
Reflecting on the efficiency of the workforce at the company, ServiceNow Inc. [NOW] managed to generate an average of $60,428 per employee. Receivables Turnover for the company is 4.91 with a Total Asset Turnover recorded at a value of 0.70.ServiceNow Inc.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 1.20 and a Current Ratio set at 1.20.
ServiceNow Inc. [NOW]: An earnings per share (EPS) analysis
With the latest financial reports released by the company, ServiceNow Inc. posted 0.99/share EPS, while the average EPS was predicted by analysts to be reported at 0.88/share. When compared, the two values demonstrate that the company surpassed the estimates by a Surprise Factor of 12.50%. The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for NOW. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for ServiceNow Inc. go to 28.21%.
An analysis of insider ownership at ServiceNow Inc. [NOW]
There are presently around $76,255 million, or 95.20% of NOW stock, in the hands of institutional investors. The top three institutional holders of NOW stocks are: PRICE T ROWE ASSOCIATES INC /MD/ with ownership of 16,368,152, which is approximately -10.089% of the company’s market cap and around 0.10% of the total institutional ownership; VANGUARD GROUP INC, holding 15,469,656 shares of the stock with an approximate value of $6.67 billion in NOW stocks shares; and BLACKROCK INC., currently with $6.61 billion in NOW stock with ownership of nearly 2.391% of the company’s market capitalization.
Positions in ServiceNow Inc. stocks held by institutional investors increased at the end of July and at the time of the July reporting period, where 629 institutional holders increased their position in ServiceNow Inc. [NYSE:NOW] by around 16,080,549 shares. Additionally, 358 investors decreased positions by around 20,809,283 shares, while 79 investors held positions by with 139,949,463 shares. The mentioned changes placed institutional holdings at 176,839,295 shares, according to the latest SEC report filing. NOW stock had 198 new institutional investments in for a total of 3,533,978 shares, while 62 institutional investors sold positions of 2,714,158 shares during the same period.