ServiceNow (NYSE:NOW) Trading Up 2.6% – Still a Buy?

ServiceNow, Inc. (NYSE:NOW) shot up 2.6% during mid-day trading on Monday . The company traded as high as $149.60 and last traded at $148.43. Approximately 25,758,407 shares changed hands during trading, an increase of 10% from the average session volume of 23,484,400 shares. The stock had previously closed at $144.71.

ServiceNow News Roundup

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: ServiceNow’s AI momentum remains a key bullish catalyst. Reports indicate that AI-related contracts have surpassed $1 billion, while the company’s latest quarterly results beat expectations: EPS was $0.90 versus $0.86 expected, revenue was $3.99 billion versus $3.93 billion expected, and revenue grew 24% year over year. ServiceNow AI Revenue and Earnings Report
• Positive Sentiment: A broader rebound in enterprise software has eased concerns that generative AI will displace established application vendors. Recent industry results suggest AI could increase demand for automation and workflow platforms such as ServiceNow’s Now Platform. Software Stocks and the SaaSpocalypse Trade
• Neutral Sentiment: Analysts remain moderately optimistic, with a consensus “Moderate Buy” rating and an average price target of $144.24. However, comparisons with Salesforce and UiPath highlight competitive risks and uncertainty over the economics of agentic AI adoption. ServiceNow Performance Versus Software Peers
• Negative Sentiment: Multiple insiders recently reduced their holdings: Paul Fipps sold 2,034 shares for about $301,000, Jacqueline Canney sold 7,847 shares for approximately $1.08 million, and Director Paul Edward Chamberlain sold 2,700 shares for about $366,000. Canney’s sale was made under a pre-arranged Rule 10b5-1 plan, limiting its bearish significance, but the concentration of sales may weigh on sentiment. ServiceNow Insider Sales
• Negative Sentiment: ServiceNow has lagged some software peers over the past year, while escalating geopolitical tensions and overall market weakness have created additional near-term pressure on technology shares. ServiceNow Stock Market Pressure

Analyst Upgrades and Downgrades

A number of research analysts have weighed in on NOW shares. The Goldman Sachs Group reiterated a “buy” rating on shares of ServiceNow in a research report on Monday, August 3rd. Royal Bank Of Canada restated an “outperform” rating and issued a $130.00 price target on shares of ServiceNow in a research note on Thursday, July 23rd. Bank of America upped their price target on ServiceNow from $130.00 to $150.00 and gave the stock a “buy” rating in a report on Wednesday, August 19th. CLSA began coverage on ServiceNow in a research report on Monday, July 20th. They set an “underperform” rating and a $72.00 price target on the stock. Finally, DA Davidson set a $170.00 price objective on ServiceNow and gave the company a “buy” rating in a report on Monday, July 20th. One investment analyst has rated the stock with a Strong Buy rating, thirty-six have assigned a Buy rating, three have assigned a Hold rating and two have issued a Sell rating to the stock. Based on data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and a consensus price target of $144.24.

ServiceNow Stock Performance

The company has a current ratio of 0.70, a quick ratio of 0.70 and a debt-to-equity ratio of 0.43. The firm’s 50-day moving average is $114.37 and its two-hundred day moving average is $107.20. The stock has a market cap of $147.54 billion, a price-to-earnings ratio of 89.18, a P/E/G ratio of 2.60 and a beta of 0.97.

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

Insider Activity

In related news, insider Jacqueline P. Canney sold 7,847 shares of the stock in a transaction on Friday, August 28th. The stock was sold at an average price of $138.00, for a total value of $1,082,886.00. Following the completion of the transaction, the insider directly owned 30,042 shares of the company’s stock, valued at approximately $4,145,796. This represents a 20.71% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Paul Fipps sold 2,034 shares of the firm’s stock in a transaction on Monday, August 31st. The shares were sold at an average price of $147.87, for a total value of $300,767.58. Following the completion of the transaction, the insider owned 18,305 shares in the company, valued at $2,706,760.35. The trade was a 10.00% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 14,081 shares of company stock worth $1,937,904 over the last quarter. 0.34% of the stock is currently owned by corporate insiders.

Institutional Trading of ServiceNow

Large investors have recently bought and sold shares of the business. Wealth Watch Advisors INC purchased a new stake in shares of ServiceNow in the third quarter valued at approximately $29,000. Kelleher Financial Advisors purchased a new position in ServiceNow during the third quarter worth approximately $50,000. Pin Oak Investment Advisors Inc. lifted its position in ServiceNow by 20.7% during the third quarter. Pin Oak Investment Advisors Inc. now owns 134 shares of the information technology services provider’s stock worth $123,000 after buying an additional 23 shares in the last quarter. Jupiter Wealth Management LLC acquired a new position in ServiceNow during the second quarter worth $154,000. Finally, CBIZ Investment Advisory Services LLC boosted its stake in ServiceNow by 540.0% during the fourth quarter. CBIZ Investment Advisory Services LLC now owns 160 shares of the information technology services provider’s stock worth $25,000 after buying an additional 135 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.