ServiceNow (NYSE:NOW) Stock Price Up 3.4% – What’s Next?

ServiceNow, Inc. (NYSE:NOW) traded up 3.4% during mid-day trading on Monday . The stock traded as high as $113.03 and last traded at $111.3190. 16,533,776 shares traded hands during mid-day trading, a decline of 30% from the average daily volume of 23,766,605 shares. The stock had previously closed at $107.71.

Key Headlines Impacting ServiceNow

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: UBS raised its price target on ServiceNow to $115 from $100, saying demand trends appear stable; the firm kept a neutral rating but the higher target suggests confidence in the company’s near-term setup. Article Title
• Positive Sentiment: Investors are seeing ServiceNow as a beneficiary of the AI software rotation, with coverage highlighting the company’s decision to raise its Now Assist AI contract targets and position AI as a premium add-on across workflow products. Article Title
• Positive Sentiment: New ecosystem news, including C1Secure’s ServiceNow-native SmartRAMP 20x platform for FedRAMP 20x compliance, supports the view that ServiceNow can keep expanding its enterprise and government workflow footprint. Article Title
• Neutral Sentiment: ServiceNow is scheduled to report quarterly earnings on Wednesday, and traders may be positioning ahead of the print as they look for confirmation that revenue growth and AI monetization are holding up. Article Title
• Negative Sentiment: NOW is being pulled lower along with other software names after IBM warned that clients are shifting spending toward servers and cybersecurity, triggering a broader selloff in tech and cloud software stocks. Article Title
• Negative Sentiment: Coverage from TipRanks and market reports also notes that ServiceNow and Accenture fell after IBM’s weak update, reinforcing concerns that enterprise software spending could face near-term pressure. Article Title

Analyst Upgrades and Downgrades

A number of brokerages have recently commented on NOW. Bank of America started coverage on ServiceNow in a research report on Monday, May 18th. They set a “buy” rating and a $130.00 price objective for the company. Jefferies Financial Group reiterated a “buy” rating and set a $135.00 target price (down from $175.00) on shares of ServiceNow in a research note on Thursday, April 23rd. Piper Sandler dropped their target price on ServiceNow from $200.00 to $140.00 and set an “overweight” rating on the stock in a report on Thursday, April 23rd. Oppenheimer restated an “outperform” rating on shares of ServiceNow in a research note on Wednesday. Finally, Benchmark upped their price objective on ServiceNow from $125.00 to $130.00 and gave the stock a “buy” rating in a research report on Monday, June 15th. One research analyst has rated the stock with a Strong Buy rating, thirty-five have issued a Buy rating, four have issued a Hold rating and two have given a Sell rating to the company. According to data from MarketBeat, ServiceNow has a consensus rating of “Moderate Buy” and an average price target of $140.60.

ServiceNow Price Performance

The company has a market cap of $108.15 billion, a price-to-earnings ratio of 62.51, a PEG ratio of 1.85 and a beta of 0.96. The company has a current ratio of 0.84, a quick ratio of 0.84 and a debt-to-equity ratio of 0.13. The company’s 50 day moving average price is $103.20 and its 200 day moving average price is $110.31.

ServiceNow (NYSE:NOW) last issued its quarterly earnings results on Wednesday, April 22nd. The information technology services provider reported $0.97 earnings per share (EPS) for the quarter, hitting analysts’ consensus estimates of $0.97. The business had revenue of $3.77 billion for the quarter, compared to analyst estimates of $3.75 billion. ServiceNow had a net margin of 12.59% and a return on equity of 18.16%. The business’s revenue was up 22.1% compared to the same quarter last year. During the same period in the previous year, the business posted $0.81 earnings per share. Equities research analysts forecast that ServiceNow, Inc. will post 2.34 earnings per share for the current year.

Insiders Place Their Bets

In other ServiceNow news, Director Anita M. Sands sold 16,445 shares of the firm’s stock in a transaction on Thursday, May 14th. The stock was sold at an average price of $90.14, for a total value of $1,482,352.30. Following the completion of the sale, the director owned 30,090 shares of the company’s stock, valued at approximately $2,712,312.60. This trade represents a 35.34% 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, Director Paul Edward Chamberlain sold 1,500 shares of the business’s stock in a transaction on Thursday, May 14th. The stock was sold at an average price of $87.23, for a total transaction of $130,845.00. Following the sale, the director owned 44,930 shares in the company, valued at $3,919,243.90. The trade was a 3.23% 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 sold 28,071 shares of company stock valued at $2,529,956 over the last 90 days. 0.34% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On ServiceNow

A number of large investors have recently made changes to their positions in the stock. Brighton Jones LLC boosted its stake in shares of ServiceNow by 1.1% during the 4th quarter. Brighton Jones LLC now owns 2,753 shares of the information technology services provider’s stock worth $2,919,000 after acquiring an additional 30 shares in the last quarter. Sivia Capital Partners LLC raised its holdings in ServiceNow by 4.2% during the second quarter. Sivia Capital Partners LLC now owns 837 shares of the information technology services provider’s stock worth $861,000 after purchasing an additional 34 shares during the last quarter. United Bank raised its holdings in ServiceNow by 15.5% during the second quarter. United Bank now owns 1,519 shares of the information technology services provider’s stock worth $1,562,000 after purchasing an additional 204 shares during the last quarter. Riggs Asset Managment Co. Inc. boosted its position in ServiceNow by 2.2% during the second quarter. Riggs Asset Managment Co. Inc. now owns 1,922 shares of the information technology services provider’s stock worth $1,976,000 after purchasing an additional 42 shares in the last quarter. Finally, Nebula Research & Development LLC grew its holdings in ServiceNow by 205.1% in the second quarter. Nebula Research & Development LLC now owns 906 shares of the information technology services provider’s stock valued at $931,000 after purchasing an additional 609 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.