ServiceNow (NYSE:NOW) Stock Price Down 2% – Time to Sell?

ServiceNow, Inc. (NYSE:NOW)’s stock price traded down 2% during mid-day trading on Thursday. The stock traded as low as $137.53 and last traded at $137.9550. 7,932,859 shares were traded during mid-day trading, a decline of 65% from the average daily volume of 22,538,113 shares. The stock had previously closed at $140.78.

Key ServiceNow News

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: Deutsche Bank raised its price target from $135 to $155 and upgraded NOW to “Buy,” implying roughly 11% upside from the cited reference price. The upgrade reinforces investor confidence in ServiceNow’s growth outlook. Deutsche Bank raises ServiceNow price target
• Positive Sentiment: ServiceNow is reportedly gaining traction in replacing legacy CRM and workflow systems, with AI automation expanding its role across enterprise processes and supporting customer growth. ServiceNow expands legacy replacement push
• Positive Sentiment: Partner INRY deployed ServiceNow EmployeeWorks in six weeks and is beginning to roll the AI-enabled employee platform out to clients, offering evidence of adoption and implementation momentum. INRY deploys ServiceNow EmployeeWorks
• Positive Sentiment: Enterprise software stocks, including NOW, recently outperformed broader large-cap technology shares, suggesting continued investor interest in software and AI-related businesses even as Treasury yields remain elevated. Enterprise software stocks rally
• Neutral Sentiment: Several Zacks articles highlight unusually high investor attention and generally favorable Wall Street recommendations, but provide limited new company-specific information and caution that consensus ratings can be overly optimistic. ServiceNow investor attention
• Negative Sentiment: Valuation remains a risk: NOW trades at a high earnings multiple, while a comparison with Salesforce argues that Salesforce offers a more attractive valuation and stronger proven cash generation. This may limit upside if growth or AI monetization slows. Salesforce versus ServiceNow comparison

Wall Street Analysts Forecast Growth

Several equities analysts recently commented on NOW shares. KeyCorp reaffirmed an “underweight” rating on shares of ServiceNow in a report on Tuesday, July 21st. BMO Capital Markets boosted their price objective on shares of ServiceNow from $115.00 to $118.00 and gave the company an “outperform” rating in a research report on Thursday, July 23rd. Truist Financial raised their price objective on shares of ServiceNow from $120.00 to $130.00 and gave the stock a “buy” rating in a report on Thursday, July 9th. UBS Group set a $248.00 price objective on ServiceNow in a research report on Thursday, July 23rd. Finally, Sanford C. Bernstein reissued an “outperform” rating on shares of ServiceNow in a research report on Wednesday, September 9th. One analyst has rated the stock with a Strong Buy rating, thirty-six have issued a Buy rating, three have issued a Hold rating and two have assigned a Sell rating to the company. According to data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and a consensus price target of $147.00.

ServiceNow Stock Down 2.0%

The company has a fifty day moving average of $125.26 and a 200 day moving average of $110.61. The company has a quick ratio of 0.70, a current ratio of 0.70 and a debt-to-equity ratio of 0.43. The company has a market cap of $142.65 billion, a P/E ratio of 86.22, a price-to-earnings-growth ratio of 2.52 and a beta of 0.97.

ServiceNow (NYSE:NOW) last announced its earnings results on Wednesday, July 22nd. The information technology services provider reported $0.90 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.86 by $0.04. The company 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 firm’s quarterly revenue was up 24.0% compared to the same quarter last year. During the same period in the previous year, the business posted $0.81 earnings per share. On average, research analysts anticipate that ServiceNow, Inc. will post 2.22 earnings per share for the current fiscal year.

Insiders Place Their Bets

In related news, insider Paul Fipps sold 2,034 shares of ServiceNow stock in a transaction that occurred on Monday, August 31st. The stock was sold at an average price of $147.87, for a total transaction of $300,767.58. Following the sale, the insider owned 18,305 shares of the company’s stock, valued at approximately $2,706,760.35. This trade represents a 10.00% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, insider Jacqueline P. Canney sold 7,847 shares of the firm’s stock in a transaction on 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 transaction, the insider directly owned 30,042 shares of the company’s stock, valued at $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. Insiders sold a total of 14,081 shares of company stock worth $1,937,904 over the last three months. 0.34% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On ServiceNow

Several institutional investors have recently modified their holdings of the stock. QRG Capital Management Inc. boosted its stake in ServiceNow by 6.8% during the second quarter. QRG Capital Management Inc. now owns 132,947 shares of the information technology services provider’s stock worth $13,199,000 after buying an additional 8,486 shares during the period. Envestnet Portfolio Solutions Inc. boosted its holdings in shares of ServiceNow by 61.8% in the second quarter. Envestnet Portfolio Solutions Inc. now owns 52,800 shares of the information technology services provider’s stock valued at $5,242,000 after purchasing an additional 20,173 shares during the period. State Street Corp grew its position in shares of ServiceNow by 2.0% during the 2nd quarter. State Street Corp now owns 49,038,218 shares of the information technology services provider’s stock worth $4,868,514,000 after buying an additional 979,726 shares in the last quarter. National Pension Service grew its holdings in ServiceNow by 5.8% during the 2nd quarter. National Pension Service now owns 2,705,240 shares of the information technology services provider’s stock worth $268,576,000 after acquiring an additional 147,467 shares in the last quarter. Finally, WINTON GROUP Ltd increased its holdings in ServiceNow by 45.9% during the second quarter. WINTON GROUP Ltd now owns 132,411 shares of the information technology services provider’s stock valued at $13,146,000 after buying an additional 41,653 shares during the period. 87.18% of the stock is owned by institutional investors.

About ServiceNow

ServiceNow, Inc is a cloud-based enterprise software company that provides digital workflow and automation solutions. Its Now Platform enables organizations to manage and connect business processes across information technology, customer service, human resources, finance, legal operations and other departments.

The company’s products and services include IT service management, IT operations management, customer service management, human resources service delivery, security operations, risk and compliance management, strategic portfolio management and application development tools.