ServiceNow (NYSE:NOW) Trading 4.9% Higher – Should You Buy?

Shares of ServiceNow, Inc. (NYSE:NOW) were up 4.9% during mid-day trading on Thursday . The company traded as high as $110.15 and last traded at $109.30. Approximately 25,466,279 shares traded hands during trading, an increase of 27% from the average daily volume of 20,107,369 shares. The stock had previously closed at $104.23.

Key Headlines Impacting ServiceNow

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: Moveworks (from ServiceNow) received FedRAMP Moderate authorization, clearing a federal security hurdle and enabling broader public‑sector deployments of its conversational AI — a clear revenue‑access and credibility boost for government deals. Moveworks FedRAMP announcement
• Positive Sentiment: ServiceNow says it resolves ~90% of its own IT requests autonomously — a demonstration of product maturity that can be marketed as ROI and may accelerate enterprise adoption and upsells for AI/automation features. VentureBeat: 90% autonomously resolved
• Positive Sentiment: ServiceNow AVR’s integration with Contrast Security strengthens DevSecOps and security posture on the platform — a capability that can increase customer stickiness in regulated and security‑sensitive accounts. AVR + Contrast Security integration
• Positive Sentiment: Company continues to expand AI/analytics capability (acquisitions, partnerships) and management/insiders have signaled confidence with purchase activity — supports the long‑term narrative that AI will be a tailwind to the Now Platform. Yahoo Finance: AI push, deals and insider buying
• Neutral Sentiment: Partnership messaging (e.g., EY collaboration on “system of experience”) and third‑party integrations (e.g., Sweep announcing upcoming ServiceNow support) support demand but are incremental rather than immediate catalysts. DQIndia: EY & ServiceNow collaboration
• Negative Sentiment: Short interest jumped ~28% in February to ~27.2M shares (~2.6% of float) — higher bearish positioning can amplify downside or volatility during earnings or headline risk. MarketBeat: short interest data
• Negative Sentiment: Insider Paul Fipps sold 3,696 shares (~$376k) on Feb. 23, reducing his stake by ~31% — an isolated insider sale that may be viewed negatively despite other insiders buying. InsiderTrades: Paul Fipps sale
• Negative Sentiment: Persistent market narrative that AI could compress traditional software growth still weighs on valuation; coverage notes the stock is deeply oversold but warns execution on AI monetization is the key risk. MarketBeat: oversold/AI narrative

Analyst Ratings Changes

Several research analysts have commented on NOW shares. Cantor Fitzgerald reaffirmed an “overweight” rating and set a $200.00 price objective on shares of ServiceNow in a research note on Thursday, January 29th. Weiss Ratings restated a “hold (c)” rating on shares of ServiceNow in a research report on Thursday, January 22nd. JPMorgan Chase & Co. raised their price target on ServiceNow from $204.00 to $215.00 and gave the stock an “overweight” rating in a research note on Thursday, October 30th. HSBC cut their price objective on ServiceNow from $266.40 to $226.00 and set a “buy” rating on the stock in a research report on Friday, January 30th. Finally, Arete Research set a $200.00 target price on shares of ServiceNow in a research note on Tuesday, January 6th. Three investment analysts have rated the stock with a Strong Buy rating, thirty-two have issued a Buy rating, six have issued a Hold rating and two have issued a Sell rating to the company’s stock. Based on data from MarketBeat, the company currently has an average rating of “Moderate Buy” and an average target price of $192.06.

ServiceNow Stock Performance

The stock’s 50-day moving average is $128.46 and its 200-day moving average is $160.23. The firm has a market capitalization of $114.33 billion, a price-to-earnings ratio of 65.53, a PEG ratio of 1.73 and a beta of 0.97. The company has a current ratio of 1.00, a quick ratio of 1.00 and a debt-to-equity ratio of 0.12.

ServiceNow (NYSE:NOW) last issued its quarterly earnings results on Wednesday, January 28th. The information technology services provider reported $0.92 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.89 by $0.03. The firm had revenue of $3.57 billion for the quarter, compared to the consensus estimate of $3.53 billion. ServiceNow had a net margin of 13.16% and a return on equity of 18.54%. The company’s revenue for the quarter was up 20.7% on a year-over-year basis. During the same quarter in the previous year, the company earned $0.73 EPS. On average, analysts predict that ServiceNow, Inc. will post 8.93 EPS for the current fiscal year.

Insider Buying and Selling

In other ServiceNow news, Director Paul Edward Chamberlain sold 1,500 shares of the stock in a transaction that occurred on Thursday, February 12th. The shares were sold at an average price of $101.17, for a total value of $151,755.00. Following the sale, the director directly owned 46,430 shares in the company, valued at $4,697,323.10. This represents a 3.13% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, insider Kevin Thomas Mcbride sold 1,400 shares of the firm’s stock in a transaction that occurred on Friday, February 13th. The shares were sold at an average price of $105.71, for a total transaction of $147,994.00. Following the completion of the sale, the insider directly owned 26,314 shares in the company, valued at $2,781,652.94. This represents a 5.05% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 23,222 shares of company stock worth $2,843,956 in the last ninety days. Corporate insiders own 0.34% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds have recently made changes to their positions in the company. Vanguard Group Inc. lifted its position in ServiceNow by 404.5% during the fourth quarter. Vanguard Group Inc. now owns 101,963,384 shares of the information technology services provider’s stock valued at $15,619,771,000 after buying an additional 81,752,460 shares during the period. State Street Corp boosted its holdings in shares of ServiceNow by 406.6% during the 4th quarter. State Street Corp now owns 47,896,597 shares of the information technology services provider’s stock valued at $7,337,280,000 after acquiring an additional 38,441,898 shares during the last quarter. Price T Rowe Associates Inc. MD lifted its position in ServiceNow by 371.0% during the fourth quarter. Price T Rowe Associates Inc. MD now owns 32,395,663 shares of the information technology services provider’s stock valued at $4,962,692,000 after purchasing an additional 25,517,218 shares during the period. Geode Capital Management LLC boosted its holdings in ServiceNow by 404.8% in the fourth quarter. Geode Capital Management LLC now owns 23,512,428 shares of the information technology services provider’s stock worth $3,591,425,000 after purchasing an additional 18,854,775 shares during the last quarter. Finally, Morgan Stanley grew its position in ServiceNow by 335.6% in the 4th quarter. Morgan Stanley now owns 22,733,483 shares of the information technology services provider’s stock worth $3,482,543,000 after purchasing an additional 17,514,679 shares during the period. 87.18% of the stock is owned by hedge funds and other 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.