ServiceNow, Inc. (NYSE:NOW) is set to implement a 5-for-1 stock split before the market opens on December 5, 2023. This decision follows an announcement made on October 29, when the company revealed its plans to increase share liquidity and make its stock more accessible to a broader range of investors. Shareholders will receive the new shares after the market closes on December 4.
The stock performance of ServiceNow has been notable. On Monday, shares opened at $812.02. Over the past 12 months, the stock reached a low of $678.66 and peaked at $1,198.09. Currently, the firm boasts a market capitalization of $168.90 billion, with a price-to-earnings ratio of 98.19 and a price-to-earnings-growth ratio of 4.11.
Recent Financial Performance
ServiceNow’s quarterly earnings report, released on October 29, showed a robust performance. The company reported earnings per share (EPS) of $4.82, surpassing analysts’ consensus estimates of $4.21 by $0.61. The firm achieved revenue of $3.41 billion for the quarter, exceeding analyst predictions of $3.35 billion. This marks a 21.8% increase in revenue compared to the same quarter last year, when the company earned $3.72 per share.
ServiceNow’s net margin stands at 13.66%, with a return on equity of 19.23%. Analysts project that the company will post an EPS of 8.93 for the current year, reflecting continued positive growth expectations.
Insider Transactions and Institutional Holdings
In recent insider trading activities, Paul Fipps sold 305 shares on November 18 for a total of $249,352.75, reducing his ownership by 36.05%. Following the transaction, he held 541 shares, valued at approximately $442,294.55. Similarly, Kevin Thomas McBride sold 280 shares on November 14 for around $235,894.40, which represents a 5.25% decrease in his holdings. In total, insiders have sold 1,665 shares valued at $1,386,791 over the past three months, with insiders now owning 0.34% of the company.
Institutional investors maintain a significant presence in ServiceNow, holding approximately 87.18% of the company’s stock. Recent activity includes Brighton Jones LLC increasing its stake by 1.1% and Mutual of America Capital Management LLC enhancing its holdings by 0.8% during the first quarter of the year. PNC Financial Services Group Inc. also boosted its stake by 2.3% in the same period.
ServiceNow operates an end-to-end intelligent workflow automation platform, providing solutions for digital businesses across various regions, including North America, Europe, and Asia Pacific. The company continues to play a pivotal role in the technology services sector, leveraging advancements in artificial intelligence and machine learning to enhance operational efficiency for its clients.
