ServiceNow (NYSE:NOW) Shares Down 1.6% – Here’s What Happened

ServiceNow, Inc. (NYSE:NOW) dropped 1.6% during trading on Tuesday . The company traded as low as $125.03 and last traded at $125.3180. Approximately 19,556,651 shares were traded during mid-day trading, an increase of 63% from the average daily volume of 12,022,471 shares. The stock had previously closed at $127.31.

Key Stories Impacting ServiceNow

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: ServiceNow signed a three‑year deal to embed OpenAI models (including GPT‑5.2) into its platform to deliver agentic AI for enterprise workflows — this materially strengthens NOW’s AI value proposition and revenue roadmap. ServiceNow inks deal with OpenAI to boost its AI software stack
• Positive Sentiment: ServiceNow expanded its global Partner Program to accelerate AI agent innovation, which could speed customer adoption, broaden go‑to‑market reach, and deepen partner-led implementations. ServiceNow enhances global Partner Program to accelerate AI agent innovation
• Positive Sentiment: Analyst sentiment remains favorable: multiple firms (TD Cowen, Evercore ISI, Oppenheimer, Stifel) continue to rate NOW as Buy or highlight long‑term growth from AI, providing analyst support that could stabilize the stock. ServiceNow: Strong Execution and AI Momentum Offset M&A Concerns
• Neutral Sentiment: Market commentators note near‑term headwinds (e.g., reduced U.S. federal spend tied to contract timing and workforce changes) that could pressure growth in the short term, even as longer‑term AI opportunities remain. Stifel Sees Long-Term Value in ServiceNow (NOW) Despite Near-Term Headwinds
• Negative Sentiment: Short‑term price action has been weak: the stock has experienced a multi‑week decline to levels near its 52‑week low, prompting momentum selling and negative press coverage about the “freefall.” Here’s why the ServiceNow stock price is tanking
• Negative Sentiment: Technical and valuation headwinds — current price sits below the 50‑ and 200‑day averages and near the 52‑week low, while the stock still trades at a high P/E — increasing sensitivity to any earnings or macro misses.

Analysts Set New Price Targets

Several analysts have recently weighed in on the stock. Piper Sandler reiterated an “overweight” rating and set a $200.00 target price (down from $230.00) on shares of ServiceNow in a research report on Monday, January 5th. BMO Capital Markets dropped their target price on ServiceNow from $232.00 to $230.00 and set an “outperform” rating for the company in a report on Thursday, October 30th. Cantor Fitzgerald restated an “overweight” rating and set a $240.00 target price on shares of ServiceNow in a research report on Monday, October 27th. Stifel Nicolaus lowered their price target on ServiceNow from $230.00 to $200.00 and set a “buy” rating on the stock in a research report on Friday, January 9th. Finally, Arete Research set a $200.00 price objective on ServiceNow in a report on Tuesday, January 6th. Three investment analysts have rated the stock with a Strong Buy rating, thirty-three have assigned a Buy rating, five have issued a Hold rating and two have assigned a Sell rating to the company. Based on data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and a consensus price target of $216.11.

ServiceNow Trading Down 1.6%

The company has a current ratio of 1.06, a quick ratio of 1.06 and a debt-to-equity ratio of 0.13. The business has a 50 day moving average price of $156.93 and a 200-day moving average price of $175.08. The company has a market cap of $130.13 billion, a P/E ratio of 75.77, a PEG ratio of 2.19 and a beta of 0.98.

Insider Transactions at ServiceNow

In other news, CFO Gina Mastantuono sold 2,075 shares of the company’s stock in a transaction that occurred on Friday, December 5th. The stock was sold at an average price of $170.00, for a total value of $352,750.00. Following the completion of the transaction, the chief financial officer owned 61,140 shares of the company’s stock, valued at $10,393,800. This represents a 3.28% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this hyperlink. Also, Director Lawrence Jackson sold 1,325 shares of the firm’s stock in a transaction that occurred on Friday, November 28th. The shares were sold at an average price of $162.04, for a total transaction of $214,708.30. Following the completion of the transaction, the director owned 1,615 shares of the company’s stock, valued at approximately $261,701.06. This trade represents a 45.07% decrease in their position. The SEC filing for this sale provides additional information. In the last 90 days, insiders have sold 15,310 shares of company stock worth $2,533,585. 0.34% of the stock is owned by insiders.

Institutional Trading of ServiceNow

Several hedge funds have recently made changes to their positions in NOW. Highline Wealth Partners LLC lifted its position in ServiceNow by 1.8% during the second quarter. Highline Wealth Partners LLC now owns 623 shares of the information technology services provider’s stock valued at $640,000 after purchasing an additional 11 shares during the period. Richardson Financial Services Inc. boosted its stake in shares of ServiceNow by 50.0% during the 2nd quarter. Richardson Financial Services Inc. now owns 33 shares of the information technology services provider’s stock worth $33,000 after acquiring an additional 11 shares during the last quarter. Brady Martz Wealth Solutions LLC boosted its stake in shares of ServiceNow by 1.3% during the 3rd quarter. Brady Martz Wealth Solutions LLC now owns 842 shares of the information technology services provider’s stock worth $775,000 after acquiring an additional 11 shares during the last quarter. Magnus Financial Group LLC raised its stake in shares of ServiceNow by 1.9% in the third quarter. Magnus Financial Group LLC now owns 589 shares of the information technology services provider’s stock worth $542,000 after buying an additional 11 shares during the period. Finally, Avidian Wealth Enterprises LLC raised its stake in ServiceNow by 2.5% during the 3rd quarter. Avidian Wealth Enterprises LLC now owns 453 shares of the information technology services provider’s stock worth $417,000 after acquiring an additional 11 shares during the period. 87.18% of the stock is currently 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.