ServiceNow (NYSE:NOW) Trading Down 1.8% – What’s Next?

ServiceNow, Inc. (NYSE:NOW) traded down 1.8% during trading on Friday . The stock traded as low as $98.94 and last traded at $100.78. 34,626,725 shares changed hands during trading, an increase of 80% from the average session volume of 19,244,771 shares. The stock had previously closed at $102.63.

More ServiceNow News

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: Company announced a sizable buyback program and an accelerated share repurchase (ASR) that signals management confidence and will immediately reduce float; that boost in capital-return activity supports upside if fundamentals hold.
• Positive Sentiment: Analyst upgrade: Argus moved NOW to a “strong‑buy,” adding buy-side momentum and validating the stock as an attractive entry for some investors. Zacks/Argus Upgrade
• Positive Sentiment: Needham reaffirmed its Buy rating with a $155 price target (material upside from current levels), reinforcing sell-off buyers who view weakness as a buying opportunity. TipRanks / Needham Note
• Positive Sentiment: ServiceNow deepened its AI platform strategy via a partnership with Anthropic, which supports the company’s product roadmap and helps counter narratives that new AI entrants will quickly displace incumbents. Forbes: Anthropic Partnership
• Neutral Sentiment: BetterInvesting published commentary questioning fair value after recent moves — a reminder that valuation debates persist even as management acts to support the share price. PR Newswire: BetterInvesting Update
• Negative Sentiment: Sectorwide AI fears and a broader software selloff pushed NOW (and peers) sharply lower — ServiceNow dropped nearly 8% on one session as investors punished software names over disruption concerns. This macro/sector pressure is the primary driver of today’s decline. Fool: Why NOW Tumbled CNBC: AI Fears Hammer Software
• Negative Sentiment: Broader “SaaSpocalypse” narratives and articles highlighting deep drawdowns in cloud/software names amplify investor caution; even with solid fundamentals, sentiment-driven selling can prolong weakness. 247WallSt: SaaSpocalypse

Wall Street Analyst Weigh In

A number of research firms have commented on NOW. Wall Street Zen raised shares of ServiceNow from a “hold” rating to a “buy” rating in a research note on Saturday, December 27th. Robert W. Baird set a $175.00 price objective on shares of ServiceNow in a research note on Thursday, January 29th. Argus upgraded shares of ServiceNow to a “strong-buy” rating in a research report on Wednesday. Mizuho reduced their target price on ServiceNow from $210.00 to $190.00 and set an “outperform” rating for the company in a report on Wednesday, January 21st. Finally, Jefferies Financial Group dropped their price target on ServiceNow from $230.00 to $175.00 and set a “buy” rating on the stock in a research report on Friday, January 23rd. Three research analysts have rated the stock with a Strong Buy rating, thirty-three have assigned a Buy rating, six have assigned a Hold rating and two have given a Sell rating to the company’s stock. Based on data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and an average target price of $193.01.

ServiceNow Trading Down 1.8%

The company has a 50 day moving average of $144.39 and a 200 day moving average of $167.80. The firm has a market cap of $105.42 billion, a P/E ratio of 60.42, a PEG ratio of 1.71 and a beta of 0.97. The company has a debt-to-equity ratio of 0.12, a quick ratio of 1.00 and a current ratio of 1.00.

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

Insider Transactions at ServiceNow

In other ServiceNow news, insider Jacqueline P. Canney sold 470 shares of the stock in a transaction on Tuesday, November 18th. The shares were sold at an average price of $165.42, for a total transaction of $77,745.52. Following the transaction, the insider directly owned 15,135 shares of the company’s stock, valued at $2,503,571.16. This represents a 3.01% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. Also, CFO Gina Mastantuono sold 2,075 shares of the business’s stock in a transaction dated Friday, December 5th. The stock was sold at an average price of $170.00, for a total value of $352,750.00. Following the completion of the sale, the chief financial officer directly owned 61,140 shares of the company’s stock, valued at $10,393,800. This represents a 3.28% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 15,310 shares of company stock valued at $2,533,585 in the last three months. 0.34% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On ServiceNow

Institutional investors have recently modified their holdings of the company. Kilter Group LLC bought a new stake in ServiceNow during the second quarter valued at about $25,000. IAG Wealth Partners LLC boosted its stake in ServiceNow by 200.0% during the 3rd quarter. IAG Wealth Partners LLC now owns 27 shares of the information technology services provider’s stock valued at $25,000 after purchasing an additional 18 shares during the period. Noble Wealth Management PBC boosted its position in shares of ServiceNow by 400.0% in the fourth quarter. Noble Wealth Management PBC now owns 160 shares of the information technology services provider’s stock valued at $25,000 after acquiring an additional 128 shares during the period. Millstone Evans Group LLC grew its stake in shares of ServiceNow by 400.0% in the fourth quarter. Millstone Evans Group LLC now owns 165 shares of the information technology services provider’s stock worth $25,000 after acquiring an additional 132 shares during the last quarter. Finally, Lodestone Wealth Management LLC bought a new position in ServiceNow during the fourth quarter worth $26,000. 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.