ServiceNow (NYSE:NOW) Stock Price Up 2% on Analyst Upgrade

Shares of ServiceNow, Inc. (NYSE:NOW) were up 2% during trading on Thursday after Bank of America raised their price target on the stock from $130.00 to $150.00. Bank of America currently has a buy rating on the stock. ServiceNow traded as high as $131.15 and last traded at $129.73. 16,801,204 shares were traded during mid-day trading, a decline of 29% from the average session volume of 23,701,488 shares. The stock had previously closed at $127.20.

Other research analysts also recently issued reports about the company. Wolfe Research set a $125.00 target price on ServiceNow in a research note on Thursday, April 23rd. Argus decreased their target price on shares of ServiceNow from $180.00 to $134.00 and set a “buy” rating on the stock in a research note on Friday, April 24th. Jefferies Financial Group reiterated a “buy” rating and set a $140.00 price target (up from $135.00) on shares of ServiceNow in a report on Thursday, July 23rd. TD Cowen reaffirmed a “buy” rating and set a $140.00 price target on shares of ServiceNow in a research report on Monday. Finally, BTIG Research restated a “buy” rating and issued a $150.00 price objective on shares of ServiceNow in a report on Wednesday, July 22nd. One investment analyst has rated the stock with a Strong Buy rating, thirty-six have given a Buy rating, two have given a Hold rating and three have issued a Sell rating to the company. According to data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average price target of $144.24.

Insider Activity

In related news, Director Paul Edward Chamberlain sold 1,500 shares of the company’s stock in a transaction that occurred on Thursday, August 13th. The stock was sold at an average price of $125.60, for a total value of $188,400.00. Following the completion of the transaction, the director directly owned 46,690 shares of the company’s stock, valued at $5,864,264. This represents a 3.11% decrease in their ownership of the stock. The sale 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. Corporate insiders own 0.34% of the company’s stock.

Key Headlines Impacting ServiceNow

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: Expanded Tech Mahindra partnership: ServiceNow announced a multi-year expansion with Tech Mahindra to help customers move AI projects from pilot programs into production-scale deployments. The partnership combines ServiceNow’s AI platform with Tech Mahindra’s consulting and industry expertise, potentially accelerating platform adoption, automation revenue, and measurable customer outcomes. Tech Mahindra and ServiceNow Expand Partnership to Deliver Production-Ready Enterprise AI at Scale
• Positive Sentiment: Bank of America raises its price target: BofA lifted its ServiceNow target to $150 from $130 and reiterated a Buy rating, citing the company’s potential to monetize AI. The upgrade added to broader optimism around software companies that appear capable of benefiting from, rather than being displaced by, AI. ServiceNow, Adobe, Workday stocks get BofA PT boost
• Positive Sentiment: Improving sentiment toward enterprise software: Analysts and market commentators increasingly argue that profitable, established software platforms such as ServiceNow can withstand AI disruption. Investors are also pointing to ServiceNow’s growth profile and expanding AI use cases as reasons the stock may continue recovering. ServiceNow’s stock leads a software rally
• Neutral Sentiment: Investors are weighing strategic expansion: Coverage of ServiceNow’s approximately $8 billion Armis cybersecurity acquisition highlights the company’s effort to broaden its platform and strengthen its security offering. The deal could add growth and cross-selling opportunities, but its size also raises integration and execution considerations. Inside the $8 billion cybersecurity acquisition
• Negative Sentiment: Competitive and valuation risks remain: A startup called Serval is promoting AI-based enterprise automation that could compete with ServiceNow’s workflow platform. In addition, reports of insider selling and ServiceNow’s elevated valuation could limit upside if AI monetization or growth expectations disappoint. Serval Wants To Replace ServiceNow With AI

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently made changes to their positions in the company. BlackRock Inc. purchased a new stake in ServiceNow in the 2nd quarter valued at approximately $9,536,615,000. Vanguard Group Inc. boosted its stake in ServiceNow by 404.5% in the 4th quarter. Vanguard Group Inc. now owns 101,963,384 shares of the information technology services provider’s stock worth $15,619,771,000 after buying an additional 81,752,460 shares during the last quarter. State Street Corp boosted its position in shares of ServiceNow by 406.6% in the fourth quarter. State Street Corp now owns 47,896,597 shares of the information technology services provider’s stock worth $7,337,280,000 after acquiring an additional 38,441,898 shares during the last quarter. Price T Rowe Associates Inc. MD boosted its holdings in shares of ServiceNow by 371.0% in the 4th quarter. Price T Rowe Associates Inc. MD now owns 32,395,663 shares of the information technology services provider’s stock valued at $4,962,692,000 after purchasing an additional 25,517,218 shares during the last quarter. Finally, Geode Capital Management LLC grew its position in ServiceNow by 404.8% during the fourth quarter. Geode Capital Management LLC now owns 23,512,428 shares of the information technology services provider’s stock valued at $3,591,425,000 after acquiring an additional 18,854,775 shares during the period. 87.18% of the stock is currently owned by institutional investors and hedge funds.

ServiceNow Stock Up 2.0%

The company has a debt-to-equity ratio of 0.43, a quick ratio of 0.70 and a current ratio of 0.70. The stock has a fifty day moving average price of $107.82 and a 200-day moving average price of $105.49. The firm has a market cap of $134.14 billion, a PE ratio of 81.08, a PEG ratio of 2.10 and a beta of 0.94.

ServiceNow (NYSE:NOW) last announced its earnings results on Wednesday, July 22nd. The information technology services provider reported $0.90 EPS for the quarter, beating the consensus estimate of $0.86 by $0.04. The business had revenue of $3.99 billion for the quarter, compared to the consensus estimate of $3.93 billion. ServiceNow had a return on equity of 16.45% and a net margin of 11.34%.The company’s revenue was up 24.0% on a year-over-year basis. During the same period last year, the business posted $0.81 EPS. Research analysts expect that ServiceNow, Inc. will post 2.24 EPS for the current year.

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.