ServiceNow (NYSE:NOW) Trading 2.4% Higher – What’s Next?

ServiceNow, Inc. (NYSE:NOW)’s share price rose 2.4% on Tuesday . The stock traded as high as $113.79 and last traded at $110.5730. 21,485,854 shares changed hands during trading, a decline of 11% from the average session volume of 24,056,816 shares. The stock had previously closed at $107.93.

ServiceNow News Summary

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: Truist raised its price target on ServiceNow to $130 from $120 and kept a buy rating, signaling about 20% upside from recent levels. Benzinga report on Truist price target increase
• Positive Sentiment: Multiple articles highlighted a more constructive outlook on ServiceNow’s AI momentum, with analysts and commentators suggesting the market is warming back up to enterprise software names tied to agentic AI and workflow automation. ServiceNow Stock Consolidates as Accenture Launches Agentic AI Offerings
• Positive Sentiment: ServiceNow remains a favored name in several “top pick” and bullish research pieces, reinforcing the view that investors still see it as a high-quality long-term compounder in cloud and AI software. Seeking Alpha top pick article
• Neutral Sentiment: Recent coverage also noted that ServiceNow was among software stocks benefiting from rotation out of semiconductors, which supports the stock but does not change the company’s fundamentals. Yahoo Finance article on ServiceNow stock
• Negative Sentiment: Some investors are still focused on earlier-year weakness, including worries about ServiceNow’s valuation and the market’s broader concerns about its growth trajectory, which may be limiting upside enthusiasm. Motley Fool article on ServiceNow’s first-half decline

Wall Street Analysts Forecast Growth

NOW has been the subject of several recent research reports. Royal Bank Of Canada reissued an “outperform” rating and issued a $121.00 price objective on shares of ServiceNow in a report on Tuesday, May 5th. Piper Sandler cut their target price on shares of ServiceNow from $200.00 to $140.00 and set an “overweight” rating on the stock in a report on Thursday, April 23rd. The Goldman Sachs Group restated a “buy” rating and issued a $145.00 target price (down from $163.00) on shares of ServiceNow in a research note on Wednesday. Deutsche Bank Aktiengesellschaft cut their target price on ServiceNow from $180.00 to $135.00 and set a “buy” rating on the stock in a research note on Thursday, April 16th. Finally, Sanford C. Bernstein reiterated an “outperform” rating on shares of ServiceNow in a research note on Monday, June 29th. One equities research analyst has rated the stock with a Strong Buy rating, thirty-six have issued a Buy rating, four have assigned a Hold rating and one has issued a Sell rating to the company’s stock. According to MarketBeat, ServiceNow currently has a consensus rating of “Moderate Buy” and a consensus price target of $141.47.

ServiceNow Trading Up 0.6%

The company has a market capitalization of $111.80 billion, a PE ratio of 64.65, a PEG ratio of 1.84 and a beta of 0.96. The stock has a fifty day moving average of $101.74 and a 200 day moving average of $111.62. The company has a debt-to-equity ratio of 0.13, a quick ratio of 0.84 and a current ratio of 0.84.

ServiceNow (NYSE:NOW) last posted its earnings results on Wednesday, April 22nd. The information technology services provider reported $0.97 EPS for the quarter, hitting analysts’ consensus estimates of $0.97. The company had revenue of $3.77 billion for 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 firm’s revenue for the quarter was up 22.1% on a year-over-year basis. During the same period in the previous year, the business earned $0.81 earnings per share. As a group, sell-side analysts predict that ServiceNow, Inc. will post 2.34 earnings per share for the current fiscal year.

Insider Activity at ServiceNow

In other ServiceNow news, insider Paul Fipps sold 1,048 shares of the business’s stock in a transaction dated Monday, May 18th. The shares were sold at an average price of $98.51, for a total value of $103,238.48. Following the completion of the transaction, the insider directly owned 12,072 shares in the company, valued at approximately $1,189,212.72. The trade was a 7.99% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. 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. Also, insider Jacqueline P. Canney sold 8,927 shares of the business’s stock in a transaction on Friday, April 24th. The stock was sold at an average price of $89.60, for a total value of $799,859.20. Following the transaction, 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 ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 28,071 shares of company stock valued at $2,529,956 over the last ninety days. Company insiders own 0.34% of the company’s stock.

Institutional Investors Weigh In On ServiceNow

Several hedge funds have recently added to or reduced their stakes in the business. Noble Wealth Management PBC lifted its position in shares of ServiceNow by 400.0% during the 4th quarter. Noble Wealth Management PBC now owns 160 shares of the information technology services provider’s stock valued at $25,000 after buying an additional 128 shares in the last quarter. Millstone Evans Group LLC grew its holdings 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 valued at $25,000 after purchasing an additional 132 shares in the last quarter. CBIZ Investment Advisory Services LLC increased its holdings in ServiceNow by 540.0% during the 4th quarter. CBIZ Investment Advisory Services LLC now owns 160 shares of the information technology services provider’s stock worth $25,000 after purchasing an additional 135 shares during the period. Blueline Advisors LLC purchased a new stake in ServiceNow during the 4th quarter worth about $25,000. Finally, Measured Wealth Private Client Group LLC lifted its position in shares of ServiceNow by 560.0% during the 4th quarter. Measured Wealth Private Client Group LLC now owns 165 shares of the information technology services provider’s stock worth $25,000 after buying an additional 140 shares during the last quarter. 87.18% of the stock is owned by hedge funds and other institutional investors.

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.