ServiceNow (NYSE:NOW) Stock Gets Price Target Reduction from Citigroup

ServiceNow (NYSE:NOW) had its target price dropped by analysts at Citigroup from $170.00 to $157.00 in a research note issued on Thursday, Benzinga reports. The firm presently has a “buy” rating on the information technology services provider’s stock. Citigroup‘s target price suggests a potential upside of 43.71% from the company’s previous close.

NOW has been the subject of several other research reports. Morgan Stanley reiterated an “overweight” rating and set a $160.00 target price on shares of ServiceNow in a research report on Thursday. Yorkville Ives began coverage on ServiceNow in a report on Monday, October 5th. They issued an “outperform” rating and a $160.00 price target on the stock. BTIG Research dropped their price target on ServiceNow from $170.00 to $150.00 and set a “buy” rating for the company in a research note on Thursday. Oppenheimer reiterated an “outperform” rating and set a $165.00 price objective on shares of ServiceNow in a research report on Thursday. Finally, Cantor Fitzgerald lifted their price objective on shares of ServiceNow from $174.00 to $201.00 and gave the company an “overweight” rating in a research report on Monday. One research analyst has rated the stock with a Strong Buy rating, thirty-six have assigned a Buy rating, three have issued a Hold rating and three have issued a Sell rating to the stock. Based on data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and an average target price of $154.26.

ServiceNow Price Performance

ServiceNow stock traded down $40.88 during mid-day trading on Thursday, hitting $109.25. The stock had a trading volume of 59,993,968 shares, compared to its average volume of 21,512,014. ServiceNow has a one year low of $81.24 and a one year high of $192.97. The company has a current ratio of 0.70, a quick ratio of 0.70 and a debt-to-equity ratio of 0.43. The firm has a market capitalization of $112.96 billion, a P/E ratio of 68.00, a P/E/G ratio of 2.92 and a beta of 0.99. The firm’s 50 day moving average is $139.55 and its 200 day moving average is $115.79.

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

Insider Activity at ServiceNow

In other news, insider Jacqueline P. Canney sold 7,847 shares of the company’s stock in a transaction that occurred on Friday, August 28th. The stock was sold at an average price of $138.00, for a total transaction of $1,082,886.00. Following the sale, the insider directly owned 30,042 shares of the company’s stock, valued at $4,145,796. This represents a 20.71% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, 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 stock in a transaction that occurred on Monday, August 31st. The shares were sold at an average price of $147.87, for a total value of $300,767.58. Following the transaction, the insider owned 18,305 shares of the company’s stock, 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. Over the last three months, insiders sold 14,081 shares of company stock valued at $1,937,904. Insiders own 0.34% of the company’s stock.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently modified their holdings of NOW. Traynor Capital Management Inc. raised its position in shares of ServiceNow by 39.0% during the 3rd quarter. Traynor Capital Management Inc. now owns 62,823 shares of the information technology services provider’s stock valued at $8,419,000 after buying an additional 17,634 shares in the last quarter. Bank Julius Baer & Co. Ltd Zurich lifted its holdings in shares of ServiceNow by 3,959.0% in the 3rd 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 acquiring an additional 718,762 shares during the last quarter. Greenleaf Trust grew its position in ServiceNow by 408.2% in the third 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. grew its position in ServiceNow by 396.2% in the third 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 grew its position in ServiceNow by 9.5% in the third quarter. Columbia Bank now owns 18,670 shares of the information technology services provider’s stock worth $2,502,000 after acquiring an additional 1,612 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: 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

ServiceNow Company Profile

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.