ServiceNow (NYSE:NOW) Stock Price Down 1.7% Following Insider Selling

Shares of ServiceNow, Inc. (NYSE:NOW) fell 1.7% during mid-day trading on Tuesday after an insider sold shares in the company. The company traded as low as $100.77 and last traded at $101.7110. 55,249,646 shares changed hands during trading, an increase of 148% from the average session volume of 22,310,305 shares. The stock had previously closed at $103.42.

Specifically, Director Paul Edward Chamberlain sold 1,500 shares of the firm’s stock in a transaction dated Thursday, May 14th. The stock was sold at an average price of $87.23, for a total transaction of $130,845.00. Following the sale, the director owned 44,930 shares of the company’s stock, valued at $3,919,243.90. This trade represents a 3.23% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Anita M. Sands sold 16,445 shares of the firm’s stock in a transaction dated Thursday, May 14th. The stock was sold at an average price of $90.14, for a total value of $1,482,352.30. Following the sale, the director directly owned 30,090 shares in the company, valued at approximately $2,712,312.60. This represents a 35.34% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In other news, insider Paul Fipps sold 1,048 shares of the firm’s stock in a transaction dated 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 owned 12,072 shares of the company’s stock, valued at $1,189,212.72. This trade represents a 7.99% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. 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.

Wall Street Analysts Forecast Growth

A number of research firms have recently commented on NOW. Piper Sandler dropped their price target on ServiceNow from $200.00 to $140.00 and set an “overweight” rating on the stock in a research report on Thursday, April 23rd. DA Davidson reiterated a “buy” rating and set a $190.00 price objective on shares of ServiceNow in a report on Tuesday, May 5th. Raymond James Financial decreased their price objective on ServiceNow from $160.00 to $130.00 and set an “outperform” rating for the company in a report on Thursday, April 23rd. Needham & Company LLC reiterated a “buy” rating and set a $115.00 price objective on shares of ServiceNow in a report on Tuesday, May 5th. Finally, Sanford C. Bernstein reiterated an “outperform” rating and set a $236.00 price objective (up from $226.00) on shares of ServiceNow in a report on Wednesday, May 6th. Two research analysts have rated the stock with a Strong Buy rating, thirty-three have assigned a Buy rating, six have given a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, ServiceNow currently has a consensus rating of “Moderate Buy” and a consensus price target of $141.89.

Trending Headlines about ServiceNow

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: Bank of America reinstated coverage on ServiceNow with a Buy rating and a $130 price target, calling it an AI beneficiary in the agentic AI era. BofA Reinstates Coverage of ServiceNow, Salesforce. It Says 1 Is an AI Beneficiary.
• Positive Sentiment: ServiceNow’s new partnership with Experian could strengthen its AI platform and improve enterprise workflow automation. ServiceNow (NOW) Partners With Experian to Power Autonomous AI Agents With Trusted Data
• Positive Sentiment: Wall Street commentary continues to favor ServiceNow as investors rotate back into software names that were hit by AI-disruption fears. ServiceNow Stock Has Been Battered By AI Disruption Worries. These Experts Think AI Will Actually Boost Its Business
• Neutral Sentiment: Broader software-sector strength is helping NOW, but some analysts caution the rebound may still be temporary rather than a full trend reversal. ServiceNow’s stock heads for best day in a year — flashing a green light for the software sector
• Negative Sentiment: Some articles still highlight lingering AI-disruption and valuation worries, noting ServiceNow has been under pressure despite the recent rebound. ServiceNow stock flashes a death cross amid rising SaaSpocalypse concerns

ServiceNow Stock Performance

The company has a quick ratio of 0.84, a current ratio of 0.84 and a debt-to-equity ratio of 0.13. The stock has a 50 day simple moving average of $100.18 and a two-hundred day simple moving average of $128.05. The stock has a market capitalization of $104.86 billion, a P/E ratio of 60.61, a P/E/G ratio of 1.61 and a beta of 0.82.

ServiceNow (NYSE:NOW) last posted its quarterly earnings results on Wednesday, April 22nd. The information technology services provider reported $0.97 earnings per share for the quarter, meeting analysts’ consensus estimates of $0.97. The firm had revenue of $3.77 billion during the quarter, compared to the consensus estimate of $3.75 billion. ServiceNow had a return on equity of 18.16% and a net margin of 12.59%.The business’s revenue was up 22.1% compared to the same quarter last year. During the same period last year, the company earned $0.81 earnings per share. On average, equities analysts forecast that ServiceNow, Inc. will post 2.35 EPS for the current fiscal year.

Institutional Inflows and Outflows

A number of hedge funds have recently bought and sold shares of NOW. IAG Wealth Partners LLC grew its stake in ServiceNow by 200.0% in the third 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 in the last quarter. Noble Wealth Management PBC grew its stake in 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 purchasing an additional 128 shares in the last quarter. Millstone Evans Group LLC grew its stake in ServiceNow by 400.0% in the fourth quarter. Millstone Evans Group LLC now owns 165 shares of the information technology services provider’s stock valued at $25,000 after purchasing an additional 132 shares in the last quarter. CBIZ Investment Advisory Services LLC grew its stake in ServiceNow by 540.0% in the fourth quarter. CBIZ Investment Advisory Services LLC now owns 160 shares of the information technology services provider’s stock valued at $25,000 after purchasing an additional 135 shares in the last quarter. Finally, Blueline Advisors LLC bought a new position in ServiceNow in the fourth quarter valued at approximately $25,000. 87.18% of the stock is currently owned by institutional investors.

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.