ServiceNow (NYSE:NOW) Price Target Cut to $140.00 by Analysts at UBS Group

ServiceNow (NYSE:NOW) had its price target lowered by UBS Group from $150.00 to $140.00 in a research report issued on Thursday, Benzinga reports. The firm currently has a “neutral” rating on the information technology services provider’s stock. UBS Group‘s price objective indicates a potential upside of 28.00% from the company’s previous close.

NOW has been the topic of a number of other reports. Stifel Nicolaus set a $160.00 target price on shares of ServiceNow and gave the stock a “buy” rating in a report on Tuesday, October 6th. Deutsche Bank Aktiengesellschaft lifted their price objective on shares of ServiceNow from $135.00 to $155.00 and gave the company a “buy” rating in a research report on Monday, September 21st. Citigroup reaffirmed a “buy” rating and issued a $170.00 target price (up from $154.00) on shares of ServiceNow in a report on Wednesday, October 14th. BTIG Research decreased their target price on ServiceNow from $170.00 to $150.00 and set a “buy” rating on the stock in a report on Thursday. Finally, Jefferies Financial Group set a $145.00 price target on shares of ServiceNow in a research note on Thursday. One analyst has rated the stock with a Strong Buy rating, thirty-six have assigned a Buy rating, three have assigned a Hold rating and three have assigned a Sell rating to the stock. Based on data from MarketBeat, ServiceNow has a consensus rating of “Moderate Buy” and an average target price of $154.57.

ServiceNow Stock Down 27.1%

NYSE:NOW traded down $40.76 on Thursday, hitting $109.37. 58,005,973 shares of the company’s stock were exchanged, compared to its average volume of 21,503,422. The firm has a 50-day moving average price of $139.55 and a 200-day moving average price of $115.79. ServiceNow has a 52 week low of $81.24 and a 52 week high of $192.97. The company has a debt-to-equity ratio of 0.43, a current ratio of 0.70 and a quick ratio of 0.70. The company has a market cap of $113.09 billion, a P/E ratio of 68.34, a price-to-earnings-growth ratio of 2.92 and a beta of 0.99.

ServiceNow (NYSE:NOW) last released its earnings results on Wednesday, October 28th. The information technology services provider reported $1.00 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.02 by ($0.02). The company had revenue of $4.11 billion for the quarter, compared to the consensus estimate of $4.09 billion. ServiceNow had a return on equity of 16.45% and a net margin of 11.34%. The business’s revenue was up 20.5% on a year-over-year basis. During the same quarter in the previous year, the company posted $4.82 EPS. As a group, analysts expect that ServiceNow will post 2.23 EPS for the current fiscal year.

Insider Buying and Selling

In other news, Director Paul Chamberlain sold 2,700 shares of the stock in a transaction dated Thursday, August 27th. The shares were sold at an average price of $135.50, for a total value of $365,850.00. Following the completion of the transaction, the director owned 43,990 shares of the company’s stock, valued at approximately $5,960,645. This represents a 5.78% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, 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 transaction of $1,082,886.00. Following the completion of the sale, the insider owned 30,042 shares in the company, valued at approximately $4,145,796. The trade was a 20.71% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders have sold 14,081 shares of company stock worth $1,937,904. Corporate insiders own 0.34% of the company’s stock.

Institutional Trading of ServiceNow

A number of hedge funds have recently added to or reduced their stakes in NOW. Traynor Capital Management Inc. increased its stake in shares of ServiceNow by 39.0% during the third quarter. Traynor Capital Management Inc. now owns 62,823 shares of the information technology services provider’s stock worth $8,419,000 after buying an additional 17,634 shares during the period. Bank Julius Baer & Co. Ltd Zurich increased its holdings in ServiceNow by 3,959.0% in the third quarter. Bank Julius Baer & Co. Ltd Zurich now owns 736,917 shares of the information technology services provider’s stock valued at $98,235,000 after buying an additional 718,762 shares during the last quarter. Greenleaf Trust boosted its position in shares of ServiceNow by 408.2% during the 3rd quarter. Greenleaf Trust now owns 109,783 shares of the information technology services provider’s stock worth $14,712,000 after acquiring an additional 88,182 shares in the last quarter. Nippon Life Global Investors Americas Inc. boosted its position in shares of ServiceNow by 396.2% during the 3rd quarter. Nippon Life Global Investors Americas Inc. now owns 83,270 shares of the information technology services provider’s stock worth $11,159,000 after acquiring an additional 66,490 shares in the last quarter. Finally, Columbia Bank increased its holdings in shares of ServiceNow by 9.5% in the 3rd quarter. Columbia Bank now owns 18,670 shares of the information technology services provider’s stock valued at $2,502,000 after acquiring an additional 1,612 shares during the last quarter. Institutional investors and hedge funds own 87.18% of the company’s stock.

More ServiceNow News

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: ServiceNow expanded its partnership with OpenAI to bring governed AI agents, cybersecurity capabilities and agentic development tools into enterprise workflows, supporting management’s long-term AI strategy. ServiceNow and OpenAI partnership
• Positive Sentiment: HPE selected ServiceNow for a five-year agreement to support its Cloud & AI business, while ServiceNow also launched a Control Tower Alliance focused on secure enterprise AI adoption. HPE ServiceNow agreement
• Positive Sentiment: Several analysts remained constructive after the results. Piper Sandler reaffirmed an overweight rating with a $175 target, while Oppenheimer maintained outperform with a $165 target; these targets imply substantial potential upside from current levels. Analyst views on ServiceNow
• Neutral Sentiment: Third-quarter revenue rose 20.5% year over year to $4.11 billion, exceeding the $4.09 billion consensus estimate. ServiceNow also raised its AI-related sales target, indicating continued demand, although investors focused more heavily on forward bookings trends. ServiceNow third-quarter results
• Negative Sentiment: Adjusted earnings of $1.00 per share missed the $1.02 estimate, while acquisition-related costs and higher debt and interest expenses raised questions about profit growth and cash-flow conversion. ServiceNow earnings miss
• Negative Sentiment: Management’s outlook for slower growth in subscription bookings, contracted revenue and fourth-quarter revenue was the primary catalyst for the decline. Investors viewed the guidance as evidence that enterprise customers may be moderating software spending. ServiceNow bookings outlook
• Negative Sentiment: The weaker outlook has reignited fears that generative AI could reduce demand for traditional workflow and help-desk software, pressuring ServiceNow’s valuation and weighing on other software stocks as well. ServiceNow AI disruption concerns

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.