ServiceNow, Inc. (NYSE:NOW) is set to implement a 5-for-1 stock split before the market opens on December 5, 2023. This decision, announced on October 29, aims to enhance liquidity and make shares more accessible to a broader range of investors. Shareholders will receive the newly issued shares after the market closes on December 4.
The stock has performed robustly in recent months. As of Monday, shares of ServiceNow opened at $812.02. Over the past year, the stock has experienced fluctuations, with a low of $678.66 and a high of $1,198.09. The company’s current market capitalization stands at $168.90 billion, reflecting its significant position in the information technology sector.
Recent Financial Performance
In its latest earnings report, released on October 29, ServiceNow surpassed analyst expectations, posting an earnings per share (EPS) of $4.82. This figure exceeded 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, surpassing predictions of $3.35 billion, marking a year-over-year increase of 21.8%.
Investor sentiment remains positive, with analysts projecting an average EPS of 8.93 for the current fiscal year.
Insider Trading Activity
Recent insider trading has drawn attention, particularly transactions involving key executives. On November 18, insider Paul Fipps sold 305 shares at an average price of $817.55, totaling approximately $249,352.75. Following this sale, Fipps retained 541 shares, valued at around $442,294.55, representing a 36.05% decrease in his holdings.
Similarly, on November 14, insider Kevin Thomas Mcbride sold 280 shares at an average price of $842.48, for a total value of $235,894.40. Mcbride now holds 5,054 shares, valued at approximately $4,257,893.92, reflecting a 5.25% reduction in his position. Overall, insiders have sold 1,665 shares in the last three months, valued at $1,386,791.
Institutional Investment Trends
Institutional investors continue to play a significant role in ServiceNow’s stock ownership, holding 87.18% of the company’s shares. Recent activity includes Brighton Jones LLC, which increased its stake by 1.1%, now owning 2,753 shares worth approximately $2,919,000. Mutual of America Capital Management LLC also lifted its holdings by 0.8%, now owning 24,875 shares valued at $19,804,000.
Other notable adjustments include PNC Financial Services Group Inc., which boosted its stake by 2.3%, and Quantum Financial Planning Services Inc., which grew its holdings by 34.0% during the first quarter.
ServiceNow, recognized for its innovative workflow automation solutions, continues to solidify its footprint in the global market, providing essential digital transformation tools across various sectors worldwide.
