ServiceNow (NYSE:NOW) Shares Down 2.2% – What’s Next?

ServiceNow, Inc. (NYSE:NOW) fell 2.2% during trading on Monday . The company traded as low as $91.48 and last traded at $92.9580. Approximately 24,796,014 shares were traded during mid-day trading, an increase of 3% from the average session volume of 24,164,162 shares. The stock had previously closed at $95.04.

ServiceNow News Roundup

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: Wall Street commentary remains constructive, with reports highlighting ServiceNow’s pricing power and analysts still seeing significant upside from current levels, which supports the idea that the recent weakness may be a buying opportunity.
• Positive Sentiment: ServiceNow continues to expand its AI and workflow ecosystem through new partnerships, including efforts around AI governance, public sector modernization, and secure enterprise workflows, reinforcing its long-term growth story.
• Positive Sentiment: Coverage focused on ServiceNow as a trending stock suggests increased trader and investor attention, which can help fuel short-term momentum.
• Neutral Sentiment: Recent articles comparing ServiceNow with other enterprise software leaders and explaining how to invest in the stock are mostly informational, with limited direct impact on fundamentals.
• Negative Sentiment: AI-related concerns are still weighing on the name, as investors worry that advances in AI could disrupt parts of the enterprise software market and pressure valuations.
• Negative Sentiment: The stock has also been under pressure following a broader selloff in beaten-down software shares, so some of the rebound may reflect sector rotation rather than a clear company-specific improvement.

Wall Street Analyst Weigh In

A number of equities research analysts have issued reports on the stock. Evercore increased their price objective on shares of ServiceNow from $140.00 to $150.00 and gave the company an “outperform” rating in a report on Tuesday, May 5th. Raymond James Financial lowered their target price on shares of ServiceNow from $160.00 to $130.00 and set an “outperform” rating on the stock in a report on Thursday, April 23rd. Mizuho cut their target price on shares of ServiceNow from $150.00 to $140.00 and set an “outperform” rating for the company in a research note on Thursday, April 23rd. Deutsche Bank Aktiengesellschaft cut their target price on shares of ServiceNow from $180.00 to $135.00 and set a “buy” rating for the company in a research note on Thursday, April 16th. Finally, BNP Paribas Exane upgraded shares of ServiceNow from a “neutral” rating to an “outperform” rating and set a $140.00 price target on the stock in a research note on Monday, March 16th. One investment analyst has rated the stock with a Strong Buy rating, thirty-five have issued a Buy rating, five have given a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, the stock currently has an average rating of “Moderate Buy” and an average price target of $142.17.

ServiceNow Stock Down 2.3%

The firm has a market cap of $96.64 billion, a P/E ratio of 55.86, a price-to-earnings-growth ratio of 1.55 and a beta of 0.94. The company’s 50-day simple moving average is $99.89 and its 200 day simple moving average is $116.48. The company has a debt-to-equity ratio of 0.13, a current ratio of 0.84 and a quick ratio of 0.84.

ServiceNow (NYSE:NOW) last posted its earnings results on Wednesday, April 22nd. The information technology services provider reported $0.97 earnings per share for the quarter, hitting analysts’ consensus estimates of $0.97. The firm had revenue of $3.77 billion for the quarter, compared to the consensus estimate of $3.75 billion. ServiceNow had a net margin of 12.59% and a return on equity of 18.16%. The business’s quarterly revenue was up 22.1% on a year-over-year basis. During the same period in the previous year, the firm posted $0.81 EPS. Research analysts anticipate that ServiceNow, Inc. will post 2.34 EPS for the current fiscal year.

Insider Buying and Selling

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

Institutional Investors Weigh In On ServiceNow

A number of institutional investors and hedge funds have recently added to or reduced their stakes in NOW. IAG Wealth Partners LLC boosted its holdings in shares of ServiceNow by 200.0% in the third quarter. IAG Wealth Partners LLC now owns 27 shares of the information technology services provider’s stock valued at $25,000 after purchasing an additional 18 shares during the period. Noble Wealth Management PBC increased its holdings in ServiceNow by 400.0% during the 4th quarter. Noble Wealth Management PBC now owns 160 shares of the information technology services provider’s stock worth $25,000 after purchasing an additional 128 shares during the period. Millstone Evans Group LLC raised 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 valued at $25,000 after purchasing an additional 132 shares in the last quarter. CBIZ Investment Advisory Services LLC raised its position in 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 valued at $25,000 after purchasing an additional 135 shares in the last quarter. Finally, Blueline Advisors LLC purchased a new stake in shares of ServiceNow in the 4th quarter worth $25,000. Institutional investors own 87.18% of the company’s stock.

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.