ServiceNow (NYSE:NOW) Shares Gap Down – What’s Next?

Shares of ServiceNow, Inc. (NYSE:NOW) gapped down before the market opened on Thursday . The stock had previously closed at $107.78, but opened at $102.03. ServiceNow shares last traded at $107.0020, with a volume of 3,765,446 shares changing hands.

Key ServiceNow News

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: Truist Financial raised its price target on ServiceNow to $130 from $120 and reiterated a buy rating, signaling confidence in additional upside from current levels. Benzinga source
• Positive Sentiment: Several recent commentaries argue that the market’s bearish case on ServiceNow’s AI prospects is fading, with analysts and investors seeing stronger momentum in enterprise AI adoption and workflow automation. Article Title
• Positive Sentiment: Coverage highlighting ServiceNow as a top cloud/software pick and mentions of the company in “final trades” segments reinforce the view that institutional interest remains healthy. Article Title
• Neutral Sentiment: ServiceNow is consolidating as investors weigh a constructive software backdrop, including Accenture’s launch of agentic AI offerings, which keeps the AI narrative in focus but is not a direct company-specific catalyst. Article Title
• Neutral Sentiment: Other articles note that ServiceNow remains widely watched and still trades below its longer-term moving average, suggesting investors are balancing growth optimism against concerns about valuation and the stock’s earlier decline. Article Title
• Negative Sentiment: Recent market pieces also frame ServiceNow as having sold off earlier this year and being vulnerable to broader software-sector pressure, which may keep some investors cautious despite the upbeat analyst tone. Article Title

Analyst Ratings Changes

Several research firms recently weighed in on NOW. Cantor Fitzgerald set a $130.00 price target on ServiceNow in a research note on Monday, June 15th. Royal Bank Of Canada reissued an “outperform” rating and issued a $121.00 target price on shares of ServiceNow in a research note on Tuesday, May 5th. Canaccord Genuity Group reduced their price target on ServiceNow from $200.00 to $145.00 and set a “buy” rating for the company in a report on Thursday, April 23rd. JPMorgan Chase & Co. lowered their price target on ServiceNow from $195.00 to $145.00 and set an “overweight” rating for the company in a research report on Thursday, April 23rd. Finally, Argus dropped their price target on shares of ServiceNow from $180.00 to $134.00 and set a “buy” rating on the stock in a research note on Friday, April 24th. One research analyst has rated the stock with a Strong Buy rating, thirty-six have issued a Buy rating, four have issued a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and a consensus price target of $141.47.

ServiceNow Trading Down 0.4%

The stock has a fifty day simple moving average of $101.74 and a 200 day simple moving average of $111.62. The company has a debt-to-equity ratio of 0.13, a quick ratio of 0.84 and a current ratio of 0.84. The firm has a market cap of $110.70 billion, a P/E ratio of 63.91, a price-to-earnings-growth ratio of 1.84 and a beta of 0.96.

ServiceNow (NYSE:NOW) last announced its quarterly earnings results on Wednesday, April 22nd. The information technology services provider reported $0.97 earnings per share (EPS) for the quarter, meeting analysts’ consensus estimates of $0.97. ServiceNow had a return on equity of 18.16% and a net margin of 12.59%.The firm had revenue of $3.77 billion for the quarter, compared to the consensus estimate of $3.75 billion. During the same period in the prior year, the company posted $0.81 earnings per share. The company’s quarterly revenue was up 22.1% on a year-over-year basis. On average, research analysts expect that ServiceNow, Inc. will post 2.34 earnings per share for the current fiscal year.

Insider Activity at ServiceNow

In other news, Director Paul Edward Chamberlain sold 1,500 shares of the firm’s stock in a transaction on Thursday, May 14th. The stock was sold at an average price of $87.23, for a total value of $130,845.00. Following the transaction, the director directly owned 44,930 shares in the company, valued at $3,919,243.90. This trade represents a 3.23% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Paul Fipps sold 1,048 shares of ServiceNow stock in a transaction on Monday, May 18th. The stock was sold at an average price of $98.51, for a total value of $103,238.48. Following the completion of the sale, the insider directly owned 12,072 shares of the company’s stock, valued at $1,189,212.72. The trade was a 7.99% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last ninety days, insiders have sold 28,071 shares of company stock worth $2,529,956. Company insiders own 0.34% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently bought and sold shares of the company. Brighton Jones LLC grew its position in ServiceNow by 1.1% during the fourth quarter. Brighton Jones LLC now owns 2,753 shares of the information technology services provider’s stock valued at $2,919,000 after buying an additional 30 shares during the period. Sivia Capital Partners LLC grew its position in shares of ServiceNow by 4.2% during the 2nd quarter. Sivia Capital Partners LLC now owns 837 shares of the information technology services provider’s stock valued at $861,000 after acquiring an additional 34 shares during the period. United Bank increased its stake in shares of ServiceNow by 15.5% in the 2nd quarter. United Bank now owns 1,519 shares of the information technology services provider’s stock worth $1,562,000 after purchasing an additional 204 shares in the last quarter. Riggs Asset Managment Co. Inc. raised its holdings in ServiceNow by 2.2% in the 2nd quarter. Riggs Asset Managment Co. Inc. now owns 1,922 shares of the information technology services provider’s stock worth $1,976,000 after purchasing an additional 42 shares during the period. Finally, Nebula Research & Development LLC raised its holdings in ServiceNow by 205.1% in the 2nd quarter. Nebula Research & Development LLC now owns 906 shares of the information technology services provider’s stock worth $931,000 after purchasing an additional 609 shares during the period. 87.18% of the stock is owned by hedge funds and other institutional investors.

About ServiceNow

ServiceNow (NYSE: NOW) is a cloud computing company that builds enterprise software to manage digital workflows and automate business processes. Its offerings are designed to replace manual work and legacy systems with cloud-based, service-oriented applications that support IT operations, customer service, human resources, security response and other enterprise functions.

The company’s flagship product family is the Now Platform, a suite of subscription software and platform services that includes IT Service Management (ITSM), IT Operations Management (ITOM), IT Business Management (ITBM), Customer Service Management (CSM), HR Service Delivery, Security Operations and Asset Management.