ServiceNow (NYSE:NOW) Sees Strong Trading Volume – Should You Buy?

Shares of ServiceNow, Inc. (NYSE:NOW) saw an uptick in trading volume on Monday . 20,697,089 shares were traded during mid-day trading, a decline of 10% from the previous session’s volume of 23,054,986 shares.The stock last traded at $135.4350 and had previously closed at $124.37.

ServiceNow News Summary

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: ServiceNow has been viewed as a leader in the AI-driven software rebound, with recent articles highlighting strong business momentum and investor enthusiasm for its role in agentic AI and enterprise automation. Article Title
• Positive Sentiment: The stock benefited from a broader Monday software rally after Nvidia’s CEO eased fears that AI will disrupt software companies, helping lift sentiment toward names like ServiceNow. Article Title
• Positive Sentiment: ServiceNow was also cited as a beneficiary of the new AI-chip-led rotation into software stocks, which briefly pushed the sector higher and supported bullish momentum in NOW shares. Article Title
• Neutral Sentiment: Recent commentary continues to compare ServiceNow with peers such as Salesforce and Intuit, suggesting investors are still weighing its valuation against its growth profile rather than reacting to a single company-specific event. Article Title
• Negative Sentiment: ServiceNow fell in the latest session as the software rally lost momentum, with investors pulling back from high-multiple tech stocks after a strong run-up. Article Title
• Negative Sentiment: Some recent analysis is turning more cautious on ServiceNow’s valuation, arguing the stock may be less attractive after its sharp AI-driven move higher. Article Title

Analyst Ratings Changes

Several research analysts have recently issued reports on the stock. Wall Street Zen downgraded shares of ServiceNow from a “buy” rating to a “hold” rating in a report on Saturday, February 28th. The Goldman Sachs Group lowered their price target on shares of ServiceNow from $188.00 to $163.00 and set a “buy” rating for the company in a report on Thursday, April 23rd. Sanford C. Bernstein reiterated an “outperform” rating and set a $236.00 price target (up from $226.00) on shares of ServiceNow in a report on Wednesday, May 6th. BMO Capital Markets lowered their price target on shares of ServiceNow from $120.00 to $115.00 and set an “outperform” rating for the company in a report on Thursday, April 23rd. Finally, FBN Securities lowered their price target on shares of ServiceNow from $160.00 to $120.00 in a report on Thursday, April 23rd. Two research analysts have rated the stock with a Strong Buy rating, thirty-five have given a Buy rating, five have issued a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and an average target price of $141.85.

ServiceNow Trading Down 6.1%

The business’s fifty day moving average is $98.50 and its 200-day moving average is $123.13. The firm has a market cap of $131.55 billion, a P/E ratio of 76.04, a price-to-earnings-growth ratio of 2.24 and a beta of 0.94. The company has a debt-to-equity ratio of 0.13, a quick ratio of 0.84 and a current ratio of 0.84.

ServiceNow (NYSE:NOW) last issued its quarterly earnings data 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. The business had revenue of $3.77 billion during the quarter, compared to analyst estimates of $3.75 billion. ServiceNow had a net margin of 12.59% and a return on equity of 18.16%. The firm’s quarterly revenue was up 22.1% on a year-over-year basis. During the same quarter last year, the business earned $0.81 EPS. Analysts predict that ServiceNow, Inc. will post 2.35 EPS for the current year.

Insider Buying and Selling at ServiceNow

In related news, Director Paul Edward Chamberlain sold 1,500 shares of the firm’s stock in a transaction that occurred on Thursday, May 14th. The shares were sold at an average price of $87.23, for a total value of $130,845.00. Following the completion of the transaction, the director owned 44,930 shares in the company, valued at $3,919,243.90. This trade represents a 3.23% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Paul Fipps sold 1,048 shares of the firm’s stock in a transaction that occurred on Monday, May 18th. The shares were sold at an average price of $98.51, for a total transaction of $103,238.48. Following the completion of the transaction, the insider owned 12,072 shares of the company’s stock, valued at approximately $1,189,212.72. This trade represents a 7.99% decrease in their position. The SEC filing for this sale provides additional information. 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. Insiders have sold 28,071 shares of company stock worth $2,529,956 in the last 90 days. Corporate insiders own 0.34% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in the company. Norges Bank acquired a new stake in shares of ServiceNow during the 4th quarter worth approximately $2,020,992,000. World Investment Advisors grew its position in shares of ServiceNow by 411.7% during the 4th quarter. World Investment Advisors now owns 47,955 shares of the information technology services provider’s stock worth $7,346,000 after buying an additional 38,583 shares during the period. Cohen Klingenstein LLC grew its position in shares of ServiceNow by 400.0% during the 4th quarter. Cohen Klingenstein LLC now owns 10,000 shares of the information technology services provider’s stock worth $1,532,000 after buying an additional 8,000 shares during the period. Moors & Cabot Inc. grew its position in shares of ServiceNow by 387.7% during the 4th quarter. Moors & Cabot Inc. now owns 45,630 shares of the information technology services provider’s stock worth $6,990,000 after buying an additional 36,274 shares during the period. Finally, Sumitomo Mitsui Trust Group Inc. grew its position in shares of ServiceNow by 385.9% during the 4th quarter. Sumitomo Mitsui Trust Group Inc. now owns 2,599,397 shares of the information technology services provider’s stock worth $398,202,000 after buying an additional 2,064,440 shares during the period. Institutional investors own 87.18% of the company’s stock.

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.