ServiceNow, Inc. (NYSE:NOW) Stock Has Average Target Price of $151.73 According to Analysts

ServiceNow, Inc. (NYSE:NOW) has been given an average rating of “Moderate Buy” by the forty-three research firms that are currently covering the company, MarketBeat.com reports. Three research analysts have rated the stock with a sell recommendation, three have given a hold recommendation, thirty-six have assigned a buy recommendation and one has issued a strong buy recommendation on the company. The average 1 year target price among analysts that have updated their coverage on the stock in the last year is $155.10.

Several analysts have recently issued reports on the stock. Morgan Stanley set a $180.00 price target on shares of ServiceNow in a research report on Tuesday, July 21st. Zacks Research cut ServiceNow from a “hold” rating to a “strong sell” rating in a report on Monday, October 19th. UBS Group set a $165.00 target price on shares of ServiceNow in a research note on Monday. BTIG Research reaffirmed a “buy” rating and issued a $170.00 price target on shares of ServiceNow in a report on Monday, October 12th. Finally, Argus boosted their price objective on ServiceNow from $134.00 to $170.00 and gave the stock a “buy” rating in a report on Wednesday, October 7th.

ServiceNow Price Performance

Shares of NYSE:NOW opened at $159.29 on Friday. The company has a market capitalization of $164.71 billion, a P/E ratio of 99.56, a price-to-earnings-growth ratio of 2.88 and a beta of 0.99. 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 company’s 50-day moving average is $137.87 and its 200 day moving average is $115.39.

ServiceNow (NYSE:NOW) last released 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. The business had revenue of $3.99 billion during 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 business’s revenue for the quarter was up 24.0% on a year-over-year basis. During the same period last year, the business posted $0.81 earnings per share. On average, equities research analysts forecast that ServiceNow will post 2.22 earnings per share for the current year.

Insider Activity at ServiceNow

In other ServiceNow news, Director Paul Chamberlain sold 2,700 shares of ServiceNow stock in a transaction dated 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 owned 43,990 shares of the company’s stock, valued at $5,960,645. The trade was a 5.78% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, insider Jacqueline Canney sold 7,847 shares of the firm’s stock in a transaction dated 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 directly owned 30,042 shares in the company, valued at approximately $4,145,796. This represents a 20.71% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 14,081 shares of company stock valued at $1,937,904 over the last 90 days. 0.34% of the stock is owned by insiders.

Hedge Funds Weigh In On ServiceNow

A number of large investors have recently bought and sold shares of NOW. Bank of Nova Scotia increased its position in ServiceNow by 53.3% during the 1st quarter. Bank of Nova Scotia now owns 1,018,036 shares of the information technology services provider’s stock worth $106,436,000 after purchasing an additional 353,749 shares during the period. Sapient Capital LLC increased its holdings in shares of ServiceNow by 266.0% in the 2nd quarter. Sapient Capital LLC now owns 77,661 shares of the information technology services provider’s stock valued at $7,710,000 after purchasing an additional 56,444 shares in the last quarter. Meeder Advisory Services Inc. acquired a new position in ServiceNow during the second quarter worth about $2,881,000. Vestor Capital LLC grew its holdings in shares of ServiceNow by 38,987.2% in the 1st quarter. Vestor Capital LLC now owns 122,343 shares of the information technology services provider’s stock worth $12,791,000 after acquiring an additional 122,030 shares during the period. Finally, Cardano Risk Management B.V. increased its stake in ServiceNow by 6.9% in the 2nd quarter. Cardano Risk Management B.V. now owns 484,785 shares of the information technology services provider’s stock valued at $48,129,000 after purchasing an additional 31,119 shares in the last quarter. 87.18% of the stock is owned by hedge funds and other institutional investors.

Key Stories Impacting ServiceNow

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: Bank of America raised its price target to $180 ahead of ServiceNow’s third-quarter results, citing continued demand for AI-related products and services. The revised target signals confidence that AI adoption can support additional growth. Bank of America Boosts ServiceNow Forecast Ahead of Earnings
• Positive Sentiment: ServiceNow’s defense and national-security business is being positioned as a major growth driver over the next year. Management highlighted demand for workflow automation, AI, cybersecurity, logistics modernization and digital transformation among military and government agencies. ServiceNow Defense Business Interview
• Positive Sentiment: The company and Nvidia launched “Arc,” an AI agent designed to plan tasks and verify its work. The product reinforces ServiceNow’s strategy of embedding governed, enterprise-grade AI into its workflow platform, potentially supporting product adoption and customer spending. ServiceNow and Nvidia Launch Arc
• Positive Sentiment: ServiceNow was selected as a preferred idea on CNBC’s “Final Trades,” while Polen Capital highlighted the company’s AI opportunity and revenue-growth prospects. These endorsements add to favorable market sentiment, although they are not substitutes for operating results. ServiceNow on CNBC’s Final Trades
• Neutral Sentiment: Investors are focused on ServiceNow’s upcoming third-quarter earnings, with analysts examining subscription growth, current remaining performance obligations, margins and other operating metrics beyond revenue and EPS. Results and guidance could determine whether the recent rally continues. ServiceNow Q3 Performance Estimates
• Negative Sentiment: Comparisons with TD SYNNEX frame ServiceNow as a less obvious value investment. NOW’s premium valuation means the stock remains sensitive to an earnings or guidance disappointment, despite its strong growth prospects. SNX vs. NOW Value Comparison

About ServiceNow

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.