Shares of ServiceNow, Inc. (NYSE:NOW) recorded 7.59% gain during trading session on November 7th, 2018. The script traded as low as $180.78 and last traded at $190.83. 2.98 million shares changed exchanged hands during trading, a drop of -43.29% from the 30-day average session volume of 2.08M shares. The firm had previously closed at $177.37. The company has $182.83M outstanding shares, a price-to-earnings ratio of 163.80, price-to-earnings-growth ratio of 14.30 and a beta of 1.30. The company has a RSI of 56.43, ATR of 9.66 and a volatility of 4.34% this week. NOW has a 52 week low price of $112.84 and a 52 week high price of $206.29.
Investors have identified the tech company ServiceNow, Inc. as an interesting stock but before investments are made there, an in-depth look at its trading activities will have to be conducted. The share is trading with a market value of around 34.89B, the company now has both obstacles and catalysts that affect them and they came from their mode of operations. With the company affected by events currently, it is a perfect time to analyze the numbers behind the firm in order to come up with a rather realistic picture of what this stock is.
ServiceNow, Inc. (NOW) Fundamentals that are to be considered.
When analyzing a stock, the first fundamental thing to take into account is the balance sheet. How healthy the balance sheet of a company is will determine if the company will be able to carry out all its financial and non-financial obligations and also keep the faith of its investors. For NOW, the company has in raw cash 704.85 million on their books with 30.66 million currently as liabilities. How the trend is over time is what investors should be concerned about. The company has a healthy balance sheet as their debt profile has been on a decline. In terms of their assets, the company currently has 0 total, with 0 as their total liabilities. This figure have given the company a good sense of viability under numerous contexts.
NOW were able to record 0 as free cash flow during the third quarter of the year, this saw their quarterly net cash flow reduce by 0. In cash movements, the company had a total of 287.61 million as operating cash flow.
Potential earnings growth for ServiceNow, Inc. (NOW)
In order to determine the future investment potential for this stock, we will have to analyze key trends that affect it. During the third quarter of the year, ServiceNow, Inc. recorded a total of 631.06 million in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with 0.29% coming in sequential stages and their sales for the third quarter increasing by 0.07%.
What matters though is how it ends. When the core data for the company is broken down, then the stock sounds interesting. The company spent 153.17 million trying to sell their products during the last quarter, with the result yielding a gross income of 477.89 million. This allows shareholders to hold on to 182.83M with the revenue now reading -300 cents per share. This is a figure that is close to analyst’s prediction for their fourth quarter (0.09 cents a share).
Is the stock of NOW attractive?
Having a look at the company’s valuation, the company is expected to record 0.52 total earnings per share during the next fiscal year. It is very important though to remember that the importance of trend far outweighs that of outlook. This analysis has been great and getting further updates on NOW sounds very interesting.
In related news, Chief Product Officer Desai Chirantan Jitendra sold 2,031 shares of the company’s stock in a transaction that recorded on October 12th, 2018. The sale was performed at an average price of 183.80, for a total value of 373,298. As the sale deal closes, the Director Desai Chirantan Jitendra now sold 32,500 shares of the company’s stock, valued at 5,673,216. Also, Director LUDDY FREDERIC B sold 32,500 shares of the company’s stock in a deal that was recorded on September 17th, 2018. The shares were sold at an average price of 196.45 per share, with a total market value of 150,000. Following this completion of acquisition, the Chief Product Officer now holds 2,031 shares of the company’s stock, valued at 405,875. In the last 6 months, insiders have changed their ownership in shares of company stock by 0.40%.
14 out of 33 analysts covering the stock have rated it a Buy, while 4 have maintained a Hold recommendation on ServiceNow, Inc. stock. 0 analysts has assigned a Sell rating on the NOW stock. The 12-month mean consensus price target for the company’s shares has been set at $210.07.