ServiceNow (NYSE:NOW) Trading Up 1.6% – Here’s What Happened

ServiceNow, Inc. (NYSE:NOW)’s share price was up 1.6% during mid-day trading on Tuesday . The stock traded as high as $121.84 and last traded at $119.5680. Approximately 17,106,791 shares changed hands during trading, a decline of 28% from the average daily volume of 23,730,746 shares. The stock had previously closed at $117.70.

Trending Headlines about ServiceNow

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: Bank of America raised its ServiceNow price target from $130 to $150 and assigned a “Buy” rating, citing the company’s potential to monetize artificial intelligence. The upgrade provided a direct catalyst for the stock and reinforced optimism across the software sector. Bank of America price target article
• Positive Sentiment: ServiceNow and Tech Mahindra expanded their multi-year partnership to help enterprises move AI projects from experimentation into production-scale deployments. The agreement supports ServiceNow’s strategy of becoming an enterprise AI platform and could increase adoption of its workflow and agent products. Tech Mahindra and ServiceNow partnership article
• Positive Sentiment: Recent commentary portrays ServiceNow as a potential AI winner, with expectations that it could exceed third-quarter estimates. Analysts and market commentators also argue that profitable, growing software companies can withstand AI disruption rather than become obsolete. ServiceNow AI outlook article
• Positive Sentiment: Coverage of ServiceNow’s approximately $8 billion Armis cybersecurity acquisition highlights its efforts to broaden its platform and strengthen its security and AI capabilities, potentially improving long-term growth and customer value. Armis acquisition article
• Neutral Sentiment: TD Cowen reiterated its “Buy” rating, adding to the positive analyst sentiment but providing less incremental support than Bank of America’s price-target increase. TD Cowen rating article
• Negative Sentiment: Earlier weakness was attributed to insider selling, while some investors remain concerned that AI could pressure ServiceNow’s per-seat software model if customers accomplish more work with fewer employees. These risks could limit future gains despite the current rally. ServiceNow insider selling article

Wall Street Analyst Weigh In

NOW has been the subject of several research reports. Truist Financial increased their price objective on shares of ServiceNow from $120.00 to $130.00 and gave the company a “buy” rating in a research note on Thursday, July 9th. Raymond James Financial decreased their target price on shares of ServiceNow from $160.00 to $130.00 and set an “outperform” rating on the stock in a research note on Thursday, April 23rd. Mizuho lowered their price target on shares of ServiceNow from $150.00 to $140.00 and set an “outperform” rating for the company in a report on Thursday, April 23rd. Argus dropped their price target on ServiceNow from $180.00 to $134.00 and set a “buy” rating for the company in a research note on Friday, April 24th. Finally, Cantor Fitzgerald raised their price objective on ServiceNow from $122.00 to $141.00 and gave the company an “overweight” rating in a report on Monday, July 20th. One analyst has rated the stock with a Strong Buy rating, thirty-six have given a Buy rating, two have issued a Hold rating and three have issued a Sell rating to the company. According to MarketBeat, the company has a consensus rating of “Moderate Buy” and a consensus target price of $144.24.

ServiceNow Trading Up 6.5%

The company has a market cap of $131.54 billion, a price-to-earnings ratio of 79.51, a price-to-earnings-growth ratio of 2.10 and a beta of 0.94. The business’s fifty day moving average price is $107.82 and its 200 day moving average price is $105.49. The company has a debt-to-equity ratio of 0.43, a current ratio of 0.70 and a quick ratio of 0.70.

ServiceNow (NYSE:NOW) last posted its quarterly earnings data 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. 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%.ServiceNow’s quarterly revenue was up 24.0% on a year-over-year basis. During the same period in the prior year, the business posted $0.81 earnings per share. Research analysts anticipate that ServiceNow, Inc. will post 2.24 earnings per share for the current fiscal year.

Insider Buying and Selling at ServiceNow

In other news, Director Paul Edward Chamberlain sold 1,500 shares of the stock in a transaction dated Thursday, August 13th. The stock was sold at an average price of $125.60, for a total value of $188,400.00. Following the completion of the sale, the director owned 46,690 shares of the company’s stock, valued at approximately $5,864,264. This represents a 3.11% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 0.34% of the company’s stock.

Institutional Trading of ServiceNow

Several institutional investors have recently added to or reduced their stakes in NOW. Moore Capital Management LP acquired a new position in shares of ServiceNow in the 2nd quarter worth approximately $15,117,000. Sigma Planning Corp boosted its stake in shares of ServiceNow by 53.1% in the 2nd quarter. Sigma Planning Corp now owns 28,720 shares of the information technology services provider’s stock valued at $2,851,000 after purchasing an additional 9,955 shares during the last quarter. GTS Securities LLC increased its position in shares of ServiceNow by 90.2% during the second quarter. GTS Securities LLC now owns 45,553 shares of the information technology services provider’s stock worth $4,523,000 after buying an additional 21,607 shares during the period. Alyeska Investment Group L.P. bought a new position in ServiceNow during the second quarter worth $141,966,000. Finally, Jasper Ridge Partners L.P. raised its stake in ServiceNow by 201.5% during the second quarter. Jasper Ridge Partners L.P. now owns 13,041 shares of the information technology services provider’s stock worth $1,295,000 after buying an additional 8,716 shares during the last quarter. 87.18% of the stock is currently owned by institutional investors.

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.