ServiceNow (NYSE:NOW) Stock Price Down 2.6% – Time to Sell?

ServiceNow, Inc. (NYSE:NOW) was down 2.6% during mid-day trading on Tuesday . The stock traded as low as $101.20 and last traded at $101.4490. Approximately 17,039,760 shares changed hands during trading, a decline of 29% from the average daily volume of 23,959,475 shares. The stock had previously closed at $104.15.

ServiceNow News Summary

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: Benchmark raised its price target on ServiceNow to $130 from $125 and kept a buy rating, signaling confidence that the stock still has room to run. Article source
• Positive Sentiment: ServiceNow announced partnerships with Cognizant and Wipro focused on AI governance and agentic AI deployment, which could help expand enterprise adoption and reinforce its role in AI workflow automation. Article source Article source
• Positive Sentiment: Recent market coverage noted that ServiceNow outperformed the broader market in the latest session, reflecting continued investor interest in the stock. Article source
• Neutral Sentiment: Commentary from Columbia Threadneedle highlighted ServiceNow in the context of growing AI-native adoption, but the piece was more of a portfolio discussion than a direct company-specific catalyst. Article source
• Negative Sentiment: A report of a ServiceNow security breach exposing enterprise customer data could pressure sentiment if investors worry about trust, compliance, or enterprise customer retention. Article source
• Negative Sentiment: Some analysts and comparison pieces suggested Salesforce may have the stronger near-term cloud software case, which could weigh on relative valuation sentiment for ServiceNow. Article source Article source

Analysts Set New Price Targets

Several analysts recently issued reports on NOW shares. Citizens Jmp restated a “market outperform” rating and set a $157.00 target price on shares of ServiceNow in a research report on Tuesday, May 5th. Stifel Nicolaus cut their target price on shares of ServiceNow from $135.00 to $120.00 and set a “buy” rating for the company in a research report on Thursday, April 23rd. Deutsche Bank Aktiengesellschaft cut their target price on shares of ServiceNow from $180.00 to $135.00 and set a “buy” rating for the company in a research report on Thursday, April 16th. Citigroup boosted their target price on shares of ServiceNow from $154.00 to $158.00 and gave the company a “buy” rating in a research report on Thursday, April 30th. Finally, BMO Capital Markets cut their target price on shares of ServiceNow from $120.00 to $115.00 and set an “outperform” rating for the company in a research report on Thursday, April 23rd. One research analyst has rated the stock with a Strong Buy rating, thirty-five have assigned a Buy rating, five have issued a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, ServiceNow has a consensus rating of “Moderate Buy” and a consensus target price of $142.17.

ServiceNow Price 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 firm has a market cap of $104.59 billion, a PE ratio of 60.46, a P/E/G ratio of 1.69 and a beta of 0.94. The firm’s fifty day simple moving average is $99.85 and its two-hundred day simple moving average is $119.31.

ServiceNow (NYSE:NOW) last issued its quarterly earnings results on Wednesday, April 22nd. The information technology services provider reported $0.97 earnings per share for the quarter, meeting the consensus estimate of $0.97. ServiceNow had a net margin of 12.59% and a return on equity of 18.16%. The business had revenue of $3.77 billion for the quarter, compared to the consensus estimate of $3.75 billion. During the same quarter in the previous year, the firm earned $0.81 earnings per share. The company’s revenue for the quarter was up 22.1% on a year-over-year basis. As a group, research analysts expect that ServiceNow, Inc. will post 2.35 EPS for the current year.

Insider Activity at ServiceNow

In other news, Director Paul Edward Chamberlain sold 1,500 shares of the business’s stock in a transaction on Thursday, May 14th. The shares were sold at an average price of $87.23, for a total value of $130,845.00. Following the transaction, the director owned 44,930 shares of the company’s stock, valued at approximately $3,919,243.90. The trade was a 3.23% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed 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 business’s stock in a transaction on Thursday, May 14th. The stock was sold at an average price of $90.14, for a total transaction of $1,482,352.30. Following the completion of the transaction, the director directly owned 30,090 shares in the company, valued at $2,712,312.60. This trade represents a 35.34% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold a total of 28,071 shares of company stock worth $2,529,956 over the last ninety days. 0.34% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On ServiceNow

Several hedge funds have recently modified their holdings of the stock. Lombard Odier Asset Management Europe Ltd lifted its holdings in shares of ServiceNow by 104.9% in the first quarter. Lombard Odier Asset Management Europe Ltd now owns 99,813 shares of the information technology services provider’s stock worth $10,435,000 after buying an additional 51,108 shares in the last quarter. Caerus Investment Advisors LLC lifted its holdings in shares of ServiceNow by 100.0% in the first quarter. Caerus Investment Advisors LLC now owns 7,030 shares of the information technology services provider’s stock worth $735,000 after buying an additional 3,515 shares in the last quarter. Integrated Investment Consultants LLC increased its position in ServiceNow by 12.4% in the first quarter. Integrated Investment Consultants LLC now owns 3,011 shares of the information technology services provider’s stock worth $315,000 after purchasing an additional 331 shares during the last quarter. Maripau Wealth Management LLC increased its position in ServiceNow by 26.4% in the first quarter. Maripau Wealth Management LLC now owns 3,420 shares of the information technology services provider’s stock worth $358,000 after purchasing an additional 715 shares during the last quarter. Finally, Westshore Wealth LLC increased its position in ServiceNow by 0.8% in the first quarter. Westshore Wealth LLC now owns 16,233 shares of the information technology services provider’s stock worth $1,697,000 after purchasing an additional 128 shares during the last quarter. Hedge funds and other institutional investors own 87.18% of the company’s stock.

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.