ServiceNow (NYSE:NOW) Trading Down 3.6% After Insider Selling

ServiceNow, Inc. (NYSE:NOW)’s share price dropped 3.6% during mid-day trading on Tuesday after an insider sold shares in the company. The stock traded as low as $142.06 and last traded at $142.69. 16,591,953 shares were traded during mid-day trading, a decline of 29% from the average daily volume of 23,444,854 shares. The stock had previously closed at $147.99.

Specifically, Director Paul Edward Chamberlain sold 2,700 shares of ServiceNow stock in a transaction dated Thursday, August 27th. The stock was sold at an average price of $135.50, for a total value of $365,850.00. Following the transaction, the director directly owned 43,990 shares of the company’s stock, valued at $5,960,645. The trade was a 5.78% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this link.

Analysts Set New Price Targets

Several research analysts have commented on NOW shares. Weiss Ratings raised ServiceNow from a “sell (d+)” rating to a “hold (c-)” rating in a research report on Thursday, August 20th. Bank of America raised their target price on ServiceNow from $130.00 to $150.00 and gave the company a “buy” rating in a report on Wednesday, August 19th. Capital One Financial lifted their price objective on shares of ServiceNow from $105.00 to $120.00 and gave the company an “overweight” rating in a research note on Tuesday, May 5th. Guggenheim raised shares of ServiceNow from a “neutral” rating to a “buy” rating and set a $125.00 target price on the stock in a research report on Wednesday, July 1st. Finally, UBS Group set a $248.00 price target on shares of ServiceNow in a report on Thursday, July 23rd. One investment analyst has rated the stock with a Strong Buy rating, thirty-six have assigned a Buy rating, three have given a Hold rating and two have assigned a Sell rating to the company. According to MarketBeat.com, ServiceNow has a consensus rating of “Moderate Buy” and an average price target of $144.24.

Trending Headlines about ServiceNow

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: ServiceNow’s AI momentum remains a key bullish factor. Reports indicate that AI-related contracts have surpassed $1 billion, while the company’s latest quarterly results exceeded expectations, with adjusted EPS of $0.90 versus $0.86 expected and revenue of $3.99 billion versus $3.93 billion expected. Revenue increased 24% year over year. ServiceNow AI revenue and quarterly results
• Positive Sentiment: Analysts remain moderately optimistic despite ServiceNow underperforming some software peers over the past year. The broader rebound in software stocks is also helping sentiment, as recent earnings suggest AI may expand enterprise automation spending rather than displace demand for existing applications. ServiceNow performance versus software peers
• Neutral Sentiment: Comparisons with Salesforce, UiPath and Fujitsu emphasize ServiceNow’s strong enterprise position and AI-automation opportunity, but also highlight intense competition and uncertainty over the economics of agentic AI consumption. UiPath versus ServiceNow
• Negative Sentiment: Escalating geopolitical tensions and overall market weakness have pressured software shares, creating a near-term headwind for NOW independent of its company-specific fundamentals. ServiceNow stock and market weakness
• Negative Sentiment: Director Paul Edward Chamberlain sold 2,700 shares for approximately $365,850, reducing his position by 5.78%. He still owns a sizable stake, so the transaction is a modest negative signal rather than evidence of broad insider selling. ServiceNow SEC insider trading filing

ServiceNow Stock Down 3.6%

The firm has a market cap of $147.54 billion, a price-to-earnings ratio of 89.18, a price-to-earnings-growth ratio of 2.55 and a beta of 0.94. The company has a current ratio of 0.70, a quick ratio of 0.70 and a debt-to-equity ratio of 0.43. The stock has a 50-day moving average of $113.43 and a 200-day moving average of $106.91.

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

Hedge Funds Weigh In On ServiceNow

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the business. Millstone Evans Group LLC boosted its position in ServiceNow by 400.0% during the 4th quarter. Millstone Evans Group LLC now owns 165 shares of the information technology services provider’s stock worth $25,000 after acquiring an additional 132 shares during the period. CBIZ Investment Advisory Services LLC grew its position in ServiceNow by 540.0% in the 4th quarter. CBIZ Investment Advisory Services LLC now owns 160 shares of the information technology services provider’s stock valued at $25,000 after buying an additional 135 shares in the last quarter. Blueline Advisors LLC acquired a new position in ServiceNow during the 4th quarter valued at about $25,000. Measured Wealth Private Client Group LLC increased 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 buying an additional 140 shares during the period. Finally, Cornerstone Financial Management LLC raised its position in shares of ServiceNow by 72.8% during the 2nd quarter. Cornerstone Financial Management LLC now owns 254 shares of the information technology services provider’s stock worth $25,000 after buying an additional 107 shares in the last quarter. 87.18% of the stock is owned by institutional investors.

ServiceNow Company Profile

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.