ServiceNow (NYSE:NOW) Trading Down 2.5% – What’s Next?

ServiceNow, Inc. (NYSE:NOW)’s stock price was down 2.5% during mid-day trading on Tuesday . The company traded as low as $101.05 and last traded at $102.0380. 18,342,766 shares changed hands during trading, a decline of 22% from the average session volume of 23,543,939 shares. The stock had previously closed at $104.70.

More ServiceNow News

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: Cantor Fitzgerald raised its price target on ServiceNow and kept an overweight view, signaling confidence that the stock can recover if earnings or guidance improve. Benzinga article
• Positive Sentiment: New AI-powered integrations with Ciroos, Esri, and Hitachi Digital Services suggest ServiceNow is strengthening its role as a workflow and data hub, which could support longer-term growth. Yahoo Finance article
• Positive Sentiment: Several recent articles argue the market has become too negative on software stocks and that ServiceNow could benefit if investors refocus on strong fundamentals after earnings. Yahoo Finance article
• Neutral Sentiment: Multiple preview pieces frame the upcoming earnings report as a key catalyst for the stock, with investor sentiment likely to swing based on results, guidance, and commentary on AI-driven demand. TipRanks article
• Neutral Sentiment: ServiceNow remains a frequent subject of bullish long-term coverage, with some analysts and commentators arguing its AI strategy and large total addressable market could support a turnaround. Seeking Alpha article
• Negative Sentiment: CLSA initiated coverage with an Underperform rating and a $72 price target, adding to bearish sentiment ahead of earnings and weighing on the shares. TheStreet article
• Negative Sentiment: A critical ServiceNow code execution flaw is reportedly being exploited in attacks, which could raise security concerns for enterprise customers and create near-term headline risk. BleepingComputer article
• Negative Sentiment: Ongoing investor fears that AI could erode SaaS spending and pressure ServiceNow’s business model continue to dominate the stock’s narrative into earnings. Motley Fool article

Analyst Ratings Changes

A number of research firms have weighed in on NOW. Weiss Ratings lowered ServiceNow from a “hold (c-)” rating to a “sell (d+)” rating in a report on Friday, July 10th. Citigroup reaffirmed a “buy” rating and set a $156.00 price objective (down from $158.00) on shares of ServiceNow in a research note on Wednesday, July 15th. Robert W. Baird decreased their target price on shares of ServiceNow from $125.00 to $118.00 and set an “outperform” rating on the stock in a report on Thursday, April 23rd. Cantor Fitzgerald increased their target price on shares of ServiceNow from $122.00 to $141.00 and gave the stock an “overweight” rating in a research note on Monday. Finally, Wolfe Research set a $125.00 price target on shares of ServiceNow in a report on Thursday, April 23rd. One research analyst has rated the stock with a Strong Buy rating, thirty-five have given a Buy rating, four have issued a Hold rating and three have given a Sell rating to the stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and an average price target of $139.12.

ServiceNow Trading Down 2.5%

The stock has a market cap of $105.20 billion, a P/E ratio of 60.81, a P/E/G ratio of 1.73 and a beta of 0.96. The company has a debt-to-equity ratio of 0.13, a quick ratio of 0.84 and a current ratio of 0.84. The stock has a 50-day moving average price of $104.24 and a 200-day moving average price of $108.92.

ServiceNow (NYSE:NOW) last issued its quarterly earnings data on Wednesday, April 22nd. The information technology services provider reported $0.97 EPS for the quarter, hitting the consensus estimate of $0.97. The company had revenue of $3.77 billion during the quarter, compared to analyst estimates of $3.75 billion. ServiceNow had a return on equity of 18.16% and a net margin of 12.59%.ServiceNow’s revenue was up 22.1% on a year-over-year basis. During the same quarter in the previous year, the firm earned $0.81 earnings per share. On average, equities research analysts expect that ServiceNow, Inc. will post 2.33 EPS for the current year.

Insider Activity at ServiceNow

In other news, insider Jacqueline P. Canney sold 8,927 shares of the firm’s stock in a transaction on Friday, April 24th. The shares were sold at an average price of $89.60, for a total transaction of $799,859.20. Following the sale, the insider owned 29,531 shares in the company, valued at approximately $2,645,977.60. This trade represents a 23.21% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. Also, insider Paul Fipps sold 1,048 shares of ServiceNow stock in a transaction on Monday, May 18th. The stock was sold at an average price of $98.51, for a total transaction of $103,238.48. Following the sale, the insider directly owned 12,072 shares of the company’s stock, valued at $1,189,212.72. This represents a 7.99% 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. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last ninety days, insiders have sold 28,071 shares of company stock valued at $2,529,956. Company insiders own 0.34% of the company’s stock.

Institutional Inflows and Outflows

A number of institutional investors have recently added to or reduced their stakes in the company. Vanguard Group Inc. lifted its stake 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 worth $15,619,771,000 after purchasing an additional 81,752,460 shares during the last quarter. State Street Corp increased its position 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 purchasing an additional 38,441,898 shares during the last quarter. Price T Rowe Associates Inc. MD raised its holdings in shares of ServiceNow by 371.0% during the 4th 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 buying an additional 25,517,218 shares in the last quarter. Geode Capital Management LLC raised its holdings in shares of ServiceNow by 404.8% during the 4th quarter. Geode Capital Management LLC now owns 23,512,428 shares of the information technology services provider’s stock valued at $3,591,425,000 after buying an additional 18,854,775 shares in the last quarter. Finally, Morgan Stanley lifted 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 buying an additional 17,514,679 shares during the last quarter. Institutional investors own 87.18% of the company’s stock.

About ServiceNow

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.