ServiceNow (NYSE:NOW) Stock Price Down 3.3% – Here’s What Happened

ServiceNow, Inc. (NYSE:NOW) shares dropped 3.3% during trading on Tuesday. The stock traded as low as $97.00 and last traded at $99.3530. 18,668,973 shares were traded during mid-day trading, a decline of 13% from the average daily volume of 21,554,979 shares. The stock had previously closed at $102.76.

ServiceNow News Roundup

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: Kyndryl launched its AI-powered Autonomous Operations offering for ServiceNow, designed to automate remediation and help customers improve productivity and reduce risk. Kyndryl partnership article
• Positive Sentiment: Broward County, Florida, went live with ServiceNow IT Service Management and Workflow Data Fabric, providing evidence of adoption of its workflow and AI-related tools in government. Broward County article
• Neutral Sentiment: ServiceNow’s latest reported quarter showed revenue growth of 20.5% year over year and slightly exceeded revenue estimates, though earnings per share narrowly missed expectations.
• Negative Sentiment: Anthropic’s launch of Claude Sheets, Claude Whiteboards and Claude Data weighed on software shares as investors reassessed the threat that expanding AI tools could compete with established enterprise software. Anthropic AI tools article
• Negative Sentiment: ServiceNow shares have fallen about 30% over the past month, with much of the decline following its October 28 earnings report. The sharp pullback signals heightened investor concerns about its outlook and valuation despite continued revenue growth. Stock decline analysis

Analyst Ratings Changes

A number of equities analysts recently commented on NOW shares. Benchmark restated a “buy” rating on shares of ServiceNow in a report on Friday, July 17th. Cantor Fitzgerald increased their price target on shares of ServiceNow from $174.00 to $201.00 and gave the stock an “overweight” rating in a research note on Monday, October 26th. The Goldman Sachs Group reissued a “buy” rating on shares of ServiceNow in a research report on Monday, August 3rd. DA Davidson set a $170.00 price objective on shares of ServiceNow and gave the stock a “buy” rating in a research note on Monday, July 20th. Finally, JPMorgan Chase & Co. upped their price objective on shares of ServiceNow from $150.00 to $160.00 and gave the stock an “overweight” rating in a report on Thursday, October 29th. One equities research analyst has rated the stock with a Strong Buy rating, thirty-six have issued a Buy rating, three have assigned a Hold rating and three have issued a Sell rating to the company’s stock. According to MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average target price of $154.50.

ServiceNow Price Performance

The firm has a 50 day moving average price of $135.47 and a 200 day moving average price of $114.69. The stock has a market capitalization of $103.13 billion, a PE ratio of 71.48, a price-to-earnings-growth ratio of 2.13 and a beta of 1.00. The company has a current ratio of 0.72, a quick ratio of 0.72 and a debt-to-equity ratio of 0.42.

ServiceNow (NYSE:NOW) last issued its quarterly earnings results on Wednesday, October 28th. The information technology services provider reported $1.00 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $1.02 by ($0.02). ServiceNow had a return on equity of 15.17% and a net margin of 9.36%. The business had revenue of $4.11 billion during the quarter, compared to analysts’ expectations of $4.09 billion. During the same quarter in the previous year, the company posted $4.82 EPS. The company’s quarterly revenue was up 20.5% on a year-over-year basis. Research analysts anticipate that ServiceNow, Inc. will post 2.12 earnings per share for the current year.

Insider Transactions at ServiceNow

In related news, insider Jacqueline Canney sold 7,847 shares of ServiceNow 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 completion of the sale, the insider owned 30,042 shares in the company, valued at $4,145,796. This trade represents a 20.71% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Paul Chamberlain sold 2,700 shares of the firm’s stock in a transaction on Thursday, August 27th. The stock was sold at an average price of $135.50, for a total value of $365,850.00. Following the transaction, the director owned 43,990 shares in the company, valued at $5,960,645. The trade was a 5.78% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over 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 hedge funds have recently added to or reduced their stakes in NOW. Z3 Capital Partners LLC boosted its holdings in ServiceNow by 29.5% in the 3rd quarter. Z3 Capital Partners LLC now owns 17,380 shares of the information technology services provider’s stock worth $2,329,000 after buying an additional 3,960 shares during the last quarter. Voya Investment Management LLC increased its stake in ServiceNow by 391.3% during the 3rd quarter. Voya Investment Management LLC now owns 2,994,141 shares of the information technology services provider’s stock worth $401,245,000 after buying an additional 2,384,724 shares in the last quarter. Public Sector Pension Investment Board increased its stake in ServiceNow by 68.2% during the 3rd quarter. Public Sector Pension Investment Board now owns 309,775 shares of the information technology services provider’s stock worth $43,214,000 after buying an additional 125,571 shares in the last quarter. Rothschild Investment LLC acquired a new position in shares of ServiceNow during the third quarter valued at approximately $4,495,000. Finally, Cibc World Market Inc. raised its holdings in shares of ServiceNow by 12.4% during the third quarter. Cibc World Market Inc. now owns 415,742 shares of the information technology services provider’s stock valued at $55,714,000 after acquiring an additional 45,733 shares during the last quarter. 87.18% of the stock is owned by hedge funds and other institutional investors.

ServiceNow Company Profile

ServiceNow, Inc. provides cloud-based software that helps organizations manage digital workflows and automate business processes. Founded in 2004 by Fred Luddy, the company began with a focus on IT service management and has expanded its platform to support a range of enterprise operations. Its products include tools for IT service and operations management, customer service, human resources, security, and application development. ServiceNow also offers artificial intelligence capabilities, including tools designed to help organizations automate tasks and find information across workflows.