ServiceNow’s (NOW) “Buy” Rating Reiterated at BTIG Research

BTIG Research restated their buy rating on shares of ServiceNow (NYSE:NOW) in a research note issued to investors on Monday morning,Benzinga reports. They currently have a $170.00 price objective on the information technology services provider’s stock.

NOW has been the subject of several other reports. TD Cowen restated a “buy” rating and set a $140.00 target price on shares of ServiceNow in a research report on Monday, August 17th. Bank of America lifted their target price on shares of ServiceNow from $130.00 to $150.00 and gave the company a “buy” rating in a report on Wednesday, August 19th. Sanford C. Bernstein reiterated an “outperform” rating on shares of ServiceNow in a research report on Wednesday, September 9th. Jefferies Financial Group reiterated a “buy” rating and set a $140.00 price target (up from $135.00) on shares of ServiceNow in a research note on Thursday, July 23rd. Finally, Oppenheimer reiterated an “outperform” rating and set a $140.00 price target (up from $130.00) on shares of ServiceNow in a research note on Wednesday, July 15th. One investment 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’s stock. According to MarketBeat.com, ServiceNow currently has an average rating of “Moderate Buy” and an average price target of $149.54.

ServiceNow Stock Up 1.0%

ServiceNow stock opened at $139.96 on Monday. The company has a market capitalization of $144.72 billion, a P/E ratio of 72.65, a PEG ratio of 2.55 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 stock has a 50-day simple moving average of $134.23 and a 200-day simple moving average of $113.12.

ServiceNow (NYSE:NOW) last released its quarterly 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 firm had revenue of $3.99 billion for the quarter, compared to the consensus estimate of $3.93 billion. During the same quarter last year, the business posted $0.81 EPS. The firm’s quarterly revenue was up 24.0% compared to the same quarter last year. Equities research analysts expect that ServiceNow will post 2.22 earnings per share for the current year.

Insider Transactions at ServiceNow

In related news, insider Jacqueline P. Canney sold 7,847 shares of ServiceNow stock in a transaction 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 directly owned 30,042 shares in the company, valued at $4,145,796. This trade represents a 20.71% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Paul Fipps sold 2,034 shares of the business’s stock in a transaction on Monday, August 31st. The shares were sold at an average price of $147.87, for a total transaction of $300,767.58. Following the completion of the transaction, the insider directly owned 18,305 shares in the company, valued at $2,706,760.35. This represents a 10.00% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 14,081 shares of company stock worth $1,937,904 over the last 90 days. 0.34% of the stock is currently owned by insiders.

Institutional Trading of ServiceNow

Several hedge funds have recently made changes to their positions in the company. Perpetual Ltd increased its position in shares of ServiceNow by 12.3% in the third quarter. Perpetual Ltd now owns 6,215 shares of the information technology services provider’s stock valued at $833,000 after buying an additional 682 shares in the last quarter. Moody National Bank Trust Division raised its stake in shares of ServiceNow by 3.9% during the 3rd quarter. Moody National Bank Trust Division now owns 13,038 shares of the information technology services provider’s stock worth $1,747,000 after buying an additional 484 shares during the last quarter. Central Pacific Bank Trust Division raised its stake in shares of ServiceNow by 7.0% during the 3rd quarter. Central Pacific Bank Trust Division now owns 19,131 shares of the information technology services provider’s stock worth $2,564,000 after buying an additional 1,259 shares during the last quarter. Defender Capital LLC. purchased a new stake in shares of ServiceNow in the 3rd quarter worth about $268,000. Finally, First Financial Bank Trust Division purchased a new stake in shares of ServiceNow in the 3rd quarter worth about $5,511,000. Institutional investors and hedge funds own 87.18% of the company’s stock.

Key Headlines Impacting ServiceNow

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: Analyst support and AI growth: Oppenheimer said ServiceNow appears positioned for a favorable third-quarter outcome and raised its price target, while another analyst called NOW a top software pick. Expectations that AI, security and usage-based products could accelerate growth into fiscal 2027 supported the stock. Analyst Calls ServiceNow a Top Software Pick
• Positive Sentiment: New marketing collaboration: ServiceNow and Stagwell announced a three-year go-to-market partnership to modernize enterprise marketing campaigns. Stagwell plans to provide ServiceNow access to its AI-powered “The Machine” operating system, potentially expanding ServiceNow’s workflow platform into marketing operations and strengthening its AI credentials. Stagwell Closes the AI-Marketing Execution Gap with ServiceNow
• Positive Sentiment: Potentially attractive after the selloff: Coverage highlighted continued revenue growth of roughly 24%, expanding AI-powered workflows and recent product momentum. Some investors view the pullback as an opportunity ahead of third-quarter results, although the stock remains significantly below its 52-week high.
• Neutral Sentiment: Decagon acquisition rumors denied: ServiceNow said reports that it was interested in acquiring AI customer-service startup Decagon were false. The denial removes the prospect of a potentially expensive deal, but it also eliminates a possible way to accelerate ServiceNow’s customer-service AI capabilities. Jefferies maintained a buy rating and a $140 price target. ServiceNow’s Decagon Denial
• Negative Sentiment: Valuation remains a risk: Analysts noted that Salesforce currently has stronger earnings-estimate revisions, faster AI growth and a lower valuation. ServiceNow’s roughly 20%-plus growth must translate into stronger cash generation to justify its premium multiple, while recent spending on sales and engineering has pressured earnings despite higher revenue.

About ServiceNow

ServiceNow, Inc is a cloud-based enterprise software company that helps organizations digitize, automate and manage workflows. Its platform connects people, processes and systems across departments, enabling businesses to replace manual, disconnected activities with standardized digital workflows.

The company’s products and services support a range of functions, including information technology service management, IT operations management, customer service, human resources, risk and security operations, and software development.