ServiceNow, Inc. (NYSE:NOW) is set to execute a 5-for-1 stock split before markets open on December 5, 2023. This decision, announced on October 29, 2023, aims to make shares more accessible to a broader range of investors. Shareholders will receive the additional shares after the market closes on December 4.
The company’s stock opened at $812.02 earlier this week, with a remarkable 12-month high of $1,198.09 and a low of $678.66. With a market capitalization of $168.90 billion, ServiceNow maintains a price-to-earnings ratio of 98.19 and a price-to-earnings-growth ratio of 4.11. The firm’s beta stands at 0.94, indicating a slightly less volatile performance compared to the overall market.
In its most recent quarterly earnings report, released on October 29, ServiceNow exceeded analysts’ expectations with earnings per share (EPS) of $4.82, surpassing the consensus estimate of $4.21 by $0.61. The company reported a net margin of 13.66% and a return on equity of 19.23%. Revenue for the quarter reached $3.41 billion, outpacing analyst estimates of $3.35 billion and reflecting a year-over-year increase of 21.8%.
Insider Trading Activity and Market Reactions
Recent insider trading activity has also attracted attention. On November 18, Paul Fipps, an insider at ServiceNow, sold 305 shares at an average price of $817.55, totaling approximately $249,352.75. Following this transaction, Fipps retains 541 shares, valued at around $442,294.55, marking a 36.05% decrease in his position.
Another insider, Kevin Thomas Mcbride, sold 280 shares on November 14, realizing $235,894.40 from the sale at an average price of $842.48. Post-sale, Mcbride owns 5,054 shares, valued at approximately $4,257,893.92. This transaction represents a 5.25% decline in his ownership stake.
Over the past three months, insiders have sold a total of 1,665 shares, valued at $1,386,791. Currently, insiders control 0.34% of ServiceNow’s stock.
Institutional Investment Trends
Institutional investors have also been active in adjusting their stakes in ServiceNow. Brighton Jones LLC increased its holdings by 1.1% in the fourth quarter, now owning 2,753 shares valued at $2,919,000. Similarly, Mutual of America Capital Management LLC raised its position by 0.8%, now holding 24,875 shares worth $19,804,000.
PNC Financial Services Group Inc. expanded its stake by 2.3%, now possessing 182,423 shares valued at $145,235,000. Beta Wealth Group Inc. and Quantum Financial Planning Services Inc. also grew their investments, with increases of 4.0% and 34.0%, respectively.
Overall, institutional investors now own 87.18% of ServiceNow’s stock, reflecting strong confidence in the company’s future.
ServiceNow, Inc. provides comprehensive workflow automation solutions for digital businesses across North America, Europe, the Middle East, Africa, and the Asia Pacific region. The company’s Now platform facilitates end-to-end digital transformation through artificial intelligence, machine learning, and advanced analytics.
As the stock split approaches, market participants will be watching closely to gauge its impact on ServiceNow’s stock performance and broader investor sentiment.
