ServiceNow, Inc. (NYSE:NOW – Get Free Report) shares dropped 2.9% during mid-day trading on Friday . The company traded as low as $138.80 and last traded at $141.31. 12,286,952 shares were traded during mid-day trading, a decline of 47% from the average daily volume of 23,298,275 shares. The stock had previously closed at $145.59.
ServiceNow News Summary
Here are the key news stories impacting ServiceNow this week:
- Positive Sentiment: ServiceNow was selected as a “final trade” on CNBC’s Halftime Report, with the bullish case citing analyst support and the company’s opportunity to expand its AI offerings. Nvidia, ServiceNow, Spotify And A Financial Stock On CNBC’s Final Trades
- Positive Sentiment: ServiceNow gained alongside enterprise AI software peers as investor concerns that AI could weaken traditional seat-based software revenue eased. The broader sector rebound provided a favorable trading backdrop for NOW. Palantir Rallies 7% as PwC Alliance Counters Michael Burry Bear Case
- Positive Sentiment: Partner adoption is strengthening ServiceNow’s AI-platform narrative. Pricefx’s Deal Optimization App embeds AI pricing, negotiation, and recommendation tools into ServiceNow workflows, suggesting the platform is becoming an important distribution channel for enterprise AI applications. Is ServiceNow Quietly Becoming the Default AI Commerce Platform for Enterprise Partners?
- Neutral Sentiment: Analysts and investors remain selective within the software group. Although the sector has rebounded, commentary emphasizes that strong performance varies widely among companies, increasing scrutiny of ServiceNow’s valuation and growth durability. Software Stocks Are Back. 2 Winners, 2 Losers—and Salesforce
- Negative Sentiment: Reports of insider selling are weighing on sentiment and may be prompting investors to lock in gains after ServiceNow’s recent rally. Separate coverage also questioned whether the stock’s rapid advance has outpaced near-term fundamentals, making profit-taking a risk. ServiceNow Stock Price Down Following Insider Selling ServiceNow Just Rallied 28% in a Month: Take Profits, or Buy More?
Analyst Upgrades and Downgrades
A number of research analysts have weighed in on NOW shares. Truist Financial boosted their price objective on shares of ServiceNow from $120.00 to $130.00 and gave the company a “buy” rating in a research report on Thursday, July 9th. Sanford C. Bernstein reaffirmed an “outperform” rating and set a $248.00 price target (up from $236.00) on shares of ServiceNow in a research note on Thursday, July 23rd. Weiss Ratings upgraded shares of ServiceNow from a “sell (d+)” rating to a “hold (c-)” rating in a report on Thursday, August 20th. Evercore reissued an “outperform” rating and issued a $160.00 price objective on shares of ServiceNow in a research report on Thursday, July 23rd. Finally, Wells Fargo & Company restated an “overweight” rating and set a $175.00 target price (up from $160.00) on shares of ServiceNow in a research report on Wednesday, August 12th. One research analyst has rated the stock with a Strong Buy rating, thirty-six have given a Buy rating, three have given a Hold rating and two have issued a Sell rating to the stock. According to data from MarketBeat.com, ServiceNow has a consensus rating of “Moderate Buy” and an average price target of $144.24.
ServiceNow Stock Down 2.9%
The business’s fifty day moving average is $117.21 and its two-hundred day moving average is $107.95. The company has a market cap of $146.11 billion, a P/E ratio of 88.32, a price-to-earnings-growth ratio of 2.57 and a beta of 0.97. The company has a debt-to-equity ratio of 0.43, a quick ratio of 0.70 and a current ratio of 0.70.
ServiceNow (NYSE:NOW – Get Free Report) last announced its quarterly earnings results on Wednesday, July 22nd. The information technology services provider reported $0.90 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.86 by $0.04. The firm had revenue of $3.99 billion during the quarter, compared to analyst estimates of $3.93 billion. ServiceNow had a return on equity of 16.45% and a net margin of 11.34%.ServiceNow’s quarterly revenue was up 24.0% on a year-over-year basis. During the same quarter in the previous year, the business earned $0.81 earnings per share. Equities analysts predict that ServiceNow, Inc. will post 2.24 EPS for the current year.
Insider Activity
In other ServiceNow news, insider Paul Fipps sold 2,034 shares of ServiceNow stock in a transaction dated Monday, August 31st. The stock was sold at an average price of $147.87, for a total value of $300,767.58. Following the transaction, the insider owned 18,305 shares in the company, valued at $2,706,760.35. The trade was a 10.00% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, insider Jacqueline P. Canney sold 7,847 shares of the stock in a transaction dated Friday, August 28th. The shares were sold at an average price of $138.00, for a total transaction of $1,082,886.00. Following the sale, the insider directly owned 30,042 shares of the company’s stock, valued at approximately $4,145,796. The trade was a 20.71% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders have sold 14,081 shares of company stock worth $1,937,904. 0.34% of the stock is currently owned by company insiders.
Institutional Investors Weigh In On ServiceNow
Several institutional investors have recently bought and sold shares of NOW. Wealth Watch Advisors INC purchased a new position in shares of ServiceNow in the 3rd quarter valued at approximately $29,000. Kelleher Financial Advisors purchased a new position in shares of ServiceNow in the third quarter worth $50,000. Pin Oak Investment Advisors Inc. lifted its stake in shares of ServiceNow by 20.7% during the third quarter. Pin Oak Investment Advisors Inc. now owns 134 shares of the information technology services provider’s stock worth $123,000 after buying an additional 23 shares during the period. Jupiter Wealth Management LLC purchased a new stake in shares of ServiceNow during the second quarter valued at $154,000. Finally, CBIZ Investment Advisory Services LLC increased its position in shares of 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 acquiring an additional 135 shares during the period. 87.18% of the stock is currently owned by institutional investors and hedge funds.
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.
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