ServiceNow (NYSE:NOW) Rating Lowered to “Strong Sell” at Zacks Research

ServiceNow (NYSE:NOW) was downgraded by stock analysts at Zacks Research from a “hold” rating to a “strong sell” rating in a research report issued to clients and investors on Monday, Zacks reports.

Other equities analysts have also recently issued reports about the company. Oppenheimer restated an “outperform” rating and set a $165.00 price objective (up from $140.00) on shares of ServiceNow in a research note on Tuesday, October 13th. Cantor Fitzgerald raised their target price on ServiceNow from $141.00 to $174.00 and gave the stock an “overweight” rating in a research report on Monday, September 21st. Benchmark reiterated a “buy” rating on shares of ServiceNow in a research note on Friday, July 17th. Sanford C. Bernstein reiterated an “outperform” rating and set a $266.00 price objective on shares of ServiceNow in a research note on Tuesday. Finally, Argus increased their target price on shares of ServiceNow from $134.00 to $170.00 and gave the stock a “buy” rating in a research note on Wednesday, October 7th. One equities research analyst has rated the stock with a Strong Buy rating, thirty-six have assigned a Buy rating, three have issued a Hold rating and three have assigned a Sell rating to the company’s stock. According to data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and an average target price of $152.71.

ServiceNow Stock Up 3.0%

NOW stock opened at $149.70 on Monday. The company has a debt-to-equity ratio of 0.43, a quick ratio of 0.70 and a current ratio of 0.70. ServiceNow has a fifty-two week low of $81.24 and a fifty-two week high of $192.97. The stock’s 50 day simple moving average is $136.01 and its 200 day simple moving average is $114.34. The company has a market cap of $154.79 billion, a P/E ratio of 93.56, a price-to-earnings-growth ratio of 2.67 and a beta of 0.99.

ServiceNow (NYSE:NOW) last issued its earnings results on Wednesday, July 22nd. The information technology services provider reported $0.90 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.86 by $0.04. ServiceNow had a return on equity of 16.45% and a net margin of 11.34%. The company had revenue of $3.99 billion for the quarter, compared to analysts’ expectations of $3.93 billion. During the same period last year, the business earned $0.81 EPS. ServiceNow’s quarterly revenue was up 24.0% compared to the same quarter last year. On average, research analysts expect that ServiceNow will post 2.22 earnings per share for the current fiscal year.

Insider Buying and Selling at ServiceNow

In other news, insider Jacqueline P. Canney sold 7,847 shares of the firm’s stock in a transaction that occurred on Friday, August 28th. The shares were sold at an average price of $138.00, for a total value of $1,082,886.00. Following the transaction, the insider owned 30,042 shares in the company, valued at approximately $4,145,796. This trade represents a 20.71% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Paul Chamberlain sold 2,700 shares of the firm’s stock in a transaction on Thursday, August 27th. The stock was sold at an average price of $135.50, for a total transaction of $365,850.00. Following the completion of the sale, the director directly owned 43,990 shares in the company, valued at approximately $5,960,645. This trade represents a 5.78% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 14,081 shares of company stock worth $1,937,904 over the last three months. Company insiders own 0.34% of the company’s stock.

Institutional Investors Weigh In On ServiceNow

Large investors have recently made changes to their positions in the business. A. D. Beadell Investment Counsel Inc. boosted its stake in shares of ServiceNow by 2.9% during the 2nd quarter. A. D. Beadell Investment Counsel Inc. now owns 2,818 shares of the information technology services provider’s stock valued at $279,000 after purchasing an additional 80 shares in the last quarter. DUTCH ASSET Corp grew its stake in shares of ServiceNow by 0.5% in the 3rd quarter. DUTCH ASSET Corp now owns 16,331 shares of the information technology services provider’s stock worth $2,189,000 after buying an additional 82 shares during the last quarter. Atwood & Palmer Inc. increased its holdings in shares of ServiceNow by 20.0% during the second quarter. Atwood & Palmer Inc. now owns 600 shares of the information technology services provider’s stock valued at $60,000 after acquiring an additional 100 shares in the last quarter. Cornerstone Financial Management LLC increased its stake in ServiceNow by 72.8% during the 2nd quarter. Cornerstone Financial Management LLC now owns 254 shares of the information technology services provider’s stock valued at $25,000 after purchasing an additional 107 shares in the last quarter. Finally, Symphony Financial Ltd. Co. increased its position in shares of ServiceNow by 1.5% during the second quarter. Symphony Financial Ltd. Co. now owns 7,584 shares of the information technology services provider’s stock valued at $757,000 after acquiring an additional 115 shares in the last quarter. 87.18% of the stock is currently owned by institutional investors.

More ServiceNow News

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: Analyst support and upcoming earnings: BMO Capital Markets named ServiceNow a new Top Pick, while Bernstein raised its price target to $266 and Piper Sandler and TD Cowen also lifted targets. Investors are looking for evidence of continued customer upgrades and AI-driven growth in the third-quarter report expected October 28. These 2 software stocks are new Top Picks at BMO
• Positive Sentiment: AI monetization remains the central catalyst: ServiceNow is expanding zero-code AI-agent tools, governance capabilities and workflow automation across IT, human resources, customer service and other enterprise functions. Its recent quarter showed approximately 24% year-over-year revenue growth, supporting the argument that the company can convert AI demand into higher-margin software sales. ServiceNow Orchestrates AI’s Next Act—Can Earnings Deliver?
• Positive Sentiment: Technical momentum is improving: A bullish flag breakout and stronger moving-average structure could support a move through $154, with one forecast identifying a potential path toward $211 if resistance is cleared. ServiceNow Price Forecast: $154 Breakout Could Extend Recovery
• Positive Sentiment: ServiceNow expanded a partnership with Simplify Alpha to develop AI-powered, payer-specific solutions for health insurers, potentially opening another vertical for workflow and automation growth. Simplify Alpha Expands Partnership with ServiceNow
• Neutral Sentiment: ServiceNow was highlighted as a favored name in CNBC’s “Final Trades,” adding visibility among retail and professional investors. CNBC’s Final Trades
• Negative Sentiment: Risks include a premium valuation near 93 times trailing earnings, increased short interest, a current ratio below 1.0 and another round of San Diego sales-job cuts. These factors could limit upside if upcoming results fail to justify elevated expectations. ServiceNow cuts San Diego sales jobs

ServiceNow Company Profile

ServiceNow, Inc provides cloud-based software designed to help organizations digitize, automate and manage enterprise workflows. Its Now Platform connects people, processes and systems across departments, enabling customers to manage work through a centralized technology environment.

The company’s products and services address a range of business needs, including information technology service management, IT operations management, customer service management, human resources service delivery, security operations, risk and compliance, and application development.