Bank of America Forecasts Strong Price Appreciation for ServiceNow (NYSE:NOW) Stock

ServiceNow (NYSE:NOW) had its price objective raised by equities researchers at Bank of America from $130.00 to $150.00 in a note issued to investors on Wednesday,Benzinga reports. The brokerage currently has a “buy” rating on the information technology services provider’s stock. Bank of America‘s price objective points to a potential upside of 17.39% from the stock’s previous close.

NOW has been the subject of several other reports. Citizens Jmp reiterated a “market outperform” rating and set a $157.00 price target on shares of ServiceNow in a report on Tuesday, May 5th. BMO Capital Markets raised their price objective on shares of ServiceNow from $115.00 to $118.00 and gave the company an “outperform” rating in a research report on Thursday, July 23rd. Royal Bank Of Canada reiterated an “outperform” rating and issued a $130.00 target price on shares of ServiceNow in a research note on Thursday, July 23rd. Guggenheim raised shares of ServiceNow from a “neutral” rating to a “buy” rating and set a $125.00 target price for the company in a research report on Wednesday, July 1st. Finally, The Goldman Sachs Group reissued a “buy” rating on shares of ServiceNow in a research report on Monday, August 3rd. One research analyst has rated the stock with a Strong Buy rating, thirty-six have issued a Buy rating, two have given a Hold rating and three have assigned a Sell rating to the company. According to MarketBeat.com, ServiceNow presently has an average rating of “Moderate Buy” and a consensus price target of $144.24.

ServiceNow Stock Up 6.9%

Shares of NYSE:NOW traded up $8.29 during midday trading on Wednesday, hitting $127.78. 12,577,502 shares of the stock were exchanged, compared to its average volume of 23,679,934. The company has a market capitalization of $132.12 billion, a PE ratio of 80.17, a P/E/G ratio of 2.18 and a beta of 0.94. ServiceNow has a 52-week low of $81.24 and a 52-week high of $194.73. The company has a debt-to-equity ratio of 0.43, a quick ratio of 0.70 and a current ratio of 0.70. The business’s fifty day simple moving average is $107.40 and its two-hundred day simple moving average is $105.41.

ServiceNow (NYSE:NOW) last issued its earnings results on Wednesday, July 22nd. The information technology services provider reported $0.90 EPS for the quarter, beating analysts’ consensus estimates of $0.86 by $0.04. ServiceNow had a return on equity of 16.45% and a net margin of 11.34%.The firm had revenue of $3.99 billion for the quarter, compared to the consensus estimate of $3.93 billion. During the same quarter in the previous year, the company posted $0.81 earnings per share. The business’s quarterly revenue was up 24.0% compared to the same quarter last year. As a group, research analysts predict that ServiceNow will post 2.24 earnings per share for the current fiscal year.

Insider Transactions at ServiceNow

In other ServiceNow news, Director Paul Edward Chamberlain sold 1,500 shares of the stock in a transaction that occurred on Thursday, August 13th. The stock was sold at an average price of $125.60, for a total transaction of $188,400.00. Following the transaction, the director owned 46,690 shares in the company, valued at $5,864,264. This trade represents a 3.11% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 0.34% of the stock is owned by insiders.

Institutional Trading of ServiceNow

Large investors have recently modified their holdings of the company. Millstone Evans Group LLC boosted its holdings in ServiceNow by 400.0% during the fourth quarter. Millstone Evans Group LLC now owns 165 shares of the information technology services provider’s stock valued at $25,000 after acquiring an additional 132 shares during the period. CBIZ Investment Advisory Services LLC lifted its position in shares of ServiceNow by 540.0% during the 4th quarter. CBIZ Investment Advisory Services LLC now owns 160 shares of the information technology services provider’s stock worth $25,000 after purchasing an additional 135 shares during the last quarter. Blueline Advisors LLC acquired a new position in shares of ServiceNow during the 4th quarter worth about $25,000. Measured Wealth Private Client Group LLC boosted its stake in ServiceNow by 560.0% during the 4th quarter. Measured Wealth Private Client Group LLC now owns 165 shares of the information technology services provider’s stock valued at $25,000 after purchasing an additional 140 shares during the period. Finally, Wealth Watch Advisors INC boosted its stake in ServiceNow by 432.3% during the 4th quarter. Wealth Watch Advisors INC now owns 165 shares of the information technology services provider’s stock valued at $25,000 after purchasing an additional 134 shares during the period. 87.18% of the stock is owned by institutional investors.

Key ServiceNow News

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: Cybersecurity acquisition could strengthen ServiceNow’s growth strategy. Coverage of the planned approximately $7.75 billion acquisition of Armis highlights the deal’s potential to expand ServiceNow’s AI-enabled security platform and add preventive cyber-defense capabilities to its enterprise workflow offerings. The transaction is intended to provide a stronger position in the growing cybersecurity market. Inside the $8 billion cybersecurity acquisition
• Positive Sentiment: Analyst and media support is helping sentiment recover. TD Cowen reiterated its Buy rating, while Jim Cramer argued that investors are treating profitable software companies as if their business models face extinction. A separate analysis said NOW may be forming a technical bottom and set an 18-month target of $156, citing an estimated 24.5% three-to-five-year earnings growth rate. TD Cowen reiterates Buy rating ServiceNow may be bottoming
• Positive Sentiment: New AI partnership supports platform adoption. Tribal launched Tribal for ServiceNow, allowing enterprise teams to build and personalize AI agents within the ServiceNow AI Platform. The partnership could increase usage of ServiceNow’s platform beyond traditional developer teams. Tribal partners with ServiceNow
• Neutral Sentiment: Investor positioning remains divided. Some institutional investors increased their NOW holdings while others reduced exposure, reflecting disagreement over the stock’s valuation and the sustainability of software growth.
• Negative Sentiment: AI-related business-model concerns remain. An investor cautioned that AI agents could enable companies to accomplish more work with fewer employees, potentially pressuring software vendors’ traditional per-seat pricing model. AI business-model warning
• Negative Sentiment: Valuation and insider selling could limit the rebound. Commentary says NOW still appears expensive despite its large decline over the past year. Separately, Director Paul Edward Chamberlain sold 1,500 shares under a pre-arranged Rule 10b5-1 plan, a modest transaction but one that may add to short-term caution. ServiceNow valuation analysis

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.