DA Davidson Begins Coverage on ServiceNow (NYSE:NOW)

DA Davidson started coverage on shares of ServiceNow (NYSE:NOW) in a research note issued to investors on Wednesday morning, MarketBeat.com reports. The firm issued a buy rating and a $1,150.00 target price on the information technology services provider’s stock. DA Davidson also issued estimates for ServiceNow’s Q2 2025 earnings at $1.78 EPS, FY2025 earnings at $9.39 EPS and FY2026 earnings at $11.39 EPS.

Several other research firms have also issued reports on NOW. Morgan Stanley increased their price target on shares of ServiceNow from $881.00 to $950.00 and gave the stock an “equal weight” rating in a research report on Thursday, April 24th. Guggenheim increased their price objective on shares of ServiceNow from $716.00 to $724.00 and gave the company a “sell” rating in a research note on Thursday, April 24th. Scotiabank set a $1,100.00 price objective on shares of ServiceNow and gave the company an “outperform” rating in a research note on Wednesday, May 7th. The Goldman Sachs Group reissued a “buy” rating on shares of ServiceNow in a research note on Thursday, April 24th. Finally, Canaccord Genuity Group lowered their target price on shares of ServiceNow from $1,275.00 to $900.00 and set a “buy” rating for the company in a research note on Tuesday, April 22nd. One investment analyst has rated the stock with a sell rating, two have assigned a hold rating, thirty-one have given a buy rating and two have assigned a strong buy rating to the company’s stock. According to MarketBeat, the company presently has an average rating of “Moderate Buy” and an average price target of $1,065.32.

ServiceNow Stock Performance

NYSE NOW opened at $1,023.56 on Wednesday. The company has a current ratio of 1.12, a quick ratio of 1.12 and a debt-to-equity ratio of 0.15. The firm has a market capitalization of $211.86 billion, a price-to-earnings ratio of 139.07, a P/E/G ratio of 4.65 and a beta of 0.95. The firm’s 50 day simple moving average is $985.61 and its 200 day simple moving average is $967.23. ServiceNow has a 1 year low of $678.66 and a 1 year high of $1,198.09.

ServiceNow (NYSE:NOW) last posted its quarterly earnings results on Wednesday, April 23rd. The information technology services provider reported $4.04 earnings per share (EPS) for the quarter, topping the consensus estimate of $3.78 by $0.26. The business had revenue of $3.09 billion for the quarter, compared to analyst estimates of $3.09 billion. ServiceNow had a net margin of 13.41% and a return on equity of 17.34%. The firm’s revenue for the quarter was up 18.6% on a year-over-year basis. During the same quarter last year, the business posted $3.41 EPS. As a group, research analysts expect that ServiceNow will post 8.93 earnings per share for the current fiscal year.

Insider Activity

In other news, General Counsel Russell S. Elmer sold 191 shares of ServiceNow stock in a transaction dated Thursday, May 8th. The shares were sold at an average price of $985.00, for a total transaction of $188,135.00. Following the completion of the transaction, the general counsel now directly owns 4,332 shares in the company, valued at $4,267,020. This trade represents a 4.22% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, CEO William R. Mcdermott sold 2,050 shares of ServiceNow stock in a transaction dated Friday, May 30th. The shares were sold at an average price of $1,012.01, for a total transaction of $2,074,620.50. Following the transaction, the chief executive officer now owns 6,614 shares of the company’s stock, valued at $6,693,434.14. This represents a 23.66% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 6,716 shares of company stock worth $6,611,245 over the last three months. 0.38% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in NOW. Bogart Wealth LLC boosted its holdings in ServiceNow by 113.3% during the first quarter. Bogart Wealth LLC now owns 32 shares of the information technology services provider’s stock worth $25,000 after purchasing an additional 17 shares during the last quarter. Graybill Wealth Management LTD. purchased a new position in ServiceNow during the first quarter worth about $26,000. Quarry LP purchased a new position in ServiceNow during the fourth quarter worth about $27,000. Atala Financial Inc purchased a new position in ServiceNow during the fourth quarter worth about $28,000. Finally, WASHINGTON TRUST Co boosted its holdings in ServiceNow by 620.0% during the first quarter. WASHINGTON TRUST Co now owns 36 shares of the information technology services provider’s stock worth $29,000 after purchasing an additional 31 shares during the last quarter. 87.18% of the stock is currently owned by institutional investors and hedge funds.

About ServiceNow

ServiceNow, Inc provides end to-end intelligent workflow automation platform solutions for digital businesses in the North America, Europe, the Middle East and Africa, Asia Pacific, and internationally. The company operates the Now platform for end-to-end digital transformation, artificial intelligence, machine learning, robotic process automation, process mining, performance analytics, and collaboration and development tools.