ServiceNow (NYSE:NOW) Stock Price Down 2.1% – Time to Sell?

ServiceNow, Inc. (NYSE:NOW)’s share price was down 2.1% during mid-day trading on Thursday . The stock traded as low as $151.15 and last traded at $153.22. Approximately 9,622,740 shares changed hands during trading, an increase of 16% from the average daily volume of 8,271,816 shares. The stock had previously closed at $156.48.

ServiceNow News Roundup

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: BTIG initiated coverage with a Buy and an aggressive $1,000 price target, citing strong progress in ServiceNow’s AI platform (Now Assist) and long-term upside for the enterprise SaaS franchise. BTIG Initiates ServiceNow (NOW) with Buy Rating on Expanding AI Platform
• Positive Sentiment: Guggenheim upgraded ServiceNow despite near‑term challenges, reinforcing the view that strategic moves and AI tailwinds justify a more constructive stance. Guggenheim Upgrades ServiceNow Despite Ongoing Challenges
• Positive Sentiment: Long‑form bullish commentary (Seeking Alpha) calls the recent selloff a buying opportunity, reiterating a high-conviction bullish thesis based on strong cRPO/customer momentum and the strategic rationale for the Armis acquisition (despite valuation concerns). ServiceNow: This Selloff Is A Gift
• Neutral Sentiment: Benzinga’s options-focused piece explains a structured way to trade the “comeback” narrative, suggesting options strategies to express a recovery view without outright equity exposure. Options Corner: Here’s How To Precisely Trade The ‘Obvious’ ServiceNow Comeback Narrative
• Neutral Sentiment: Comparative and trending pieces (Zacks, MarketBeat) are driving attention to NOW as a trending/rotational idea and debating value vs. peers — this increases flows and discussion but doesn’t by itself change fundamentals. ServiceNow, Inc. (NOW) Is a Trending Stock: Facts to Know Before Betting on It
• Negative Sentiment: Zacks reported a sharp drop in a recent session (large intraday move), reflecting elevated short‑term selling pressure and volatility following the Armis deal and sector rotation. ServiceNow (NOW) Stock Falls Amid Market Uptick: What Investors Need to Know
• Negative Sentiment: Unusually large options activity: traders bought ~57,805 put contracts in one day (≈+363% vs. average), signaling sizable bearish hedging or speculative bets that can amplify downside and volatility in the near term.
• Negative Sentiment: Ongoing concern over the ~$7B Armis acquisition: several commentators highlight financing risk and potential margin compression — a core reason for the recent selloff and for wider analyst disagreement on near‑term earnings impact. ServiceNow’s $7 Billion Gamble: Panic or Opportunity

Analyst Ratings Changes

Several research firms have recently weighed in on NOW. Morgan Stanley set a $263.00 price objective on shares of ServiceNow and gave the stock an “overweight” rating in a research report on Thursday, October 30th. BMO Capital Markets decreased their price target on ServiceNow from $232.00 to $230.00 and set an “outperform” rating for the company in a report on Thursday, October 30th. Royal Bank Of Canada reissued an “outperform” rating and issued a $240.00 price objective on shares of ServiceNow in a research report on Thursday, October 30th. KeyCorp lowered ServiceNow from a “sector weight” rating to an “underweight” rating and set a $155.00 target price on the stock. in a research report on Monday, December 15th. Finally, Arete Research raised ServiceNow to a “hold” rating in a research note on Thursday, December 11th. One investment analyst has rated the stock with a Strong Buy rating, thirty-two have given a Buy rating, six have given a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and an average price target of $225.09.

ServiceNow Stock Up 1.1%

The company has a current ratio of 1.06, a quick ratio of 1.06 and a debt-to-equity ratio of 0.13. The firm has a market capitalization of $161.00 billion, a P/E ratio of 93.74, a P/E/G ratio of 3.20 and a beta of 0.97. The stock’s 50-day simple moving average is $172.05 and its 200-day simple moving average is $183.51.

ServiceNow (NYSE:NOW) last issued its quarterly earnings results on Wednesday, October 29th. The information technology services provider reported $4.82 earnings per share for the quarter, topping analysts’ consensus estimates of $0.84 by $3.98. ServiceNow had a net margin of 13.66% and a return on equity of 18.74%. The company had revenue of $3.41 billion for the quarter, compared to the consensus estimate of $3.35 billion. During the same period in the previous year, the firm earned $0.74 EPS. The firm’s quarterly revenue was up 21.8% on a year-over-year basis. As a group, research analysts predict that ServiceNow, Inc. will post 8.93 earnings per share for the current fiscal year.

Insiders Place Their Bets

In related news, Director Lawrence Jackson sold 1,325 shares of the company’s stock in a transaction that occurred on Friday, November 28th. The shares were sold at an average price of $162.04, for a total transaction of $214,708.30. Following the sale, the director directly owned 1,615 shares in the company, valued at approximately $261,701.06. This represents a 45.07% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through this hyperlink. Also, Director Paul Edward Chamberlain sold 1,500 shares of ServiceNow stock in a transaction that occurred on Friday, November 28th. The shares were sold at an average price of $161.60, for a total transaction of $242,400.00. Following the completion of the transaction, the director owned 47,930 shares of the company’s stock, valued at $7,745,488. This represents a 3.03% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last ninety days, insiders sold 15,310 shares of company stock valued at $2,533,585. Company insiders own 0.34% of the company’s stock.

Hedge Funds Weigh In On ServiceNow

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Kilter Group LLC bought a new position in shares of ServiceNow in the second quarter worth approximately $25,000. IAG Wealth Partners LLC increased its position in shares of ServiceNow by 200.0% during the 3rd quarter. IAG Wealth Partners LLC now owns 27 shares of the information technology services provider’s stock valued at $25,000 after purchasing an additional 18 shares during the last quarter. Bogart Wealth LLC raised its holdings in shares of ServiceNow by 93.8% during the 3rd quarter. Bogart Wealth LLC now owns 31 shares of the information technology services provider’s stock valued at $29,000 after buying an additional 15 shares in the last quarter. Wealth Watch Advisors INC bought a new stake in ServiceNow in the 3rd quarter worth approximately $29,000. Finally, Global X Japan Co. Ltd. purchased a new stake in ServiceNow in the second quarter worth approximately $30,000. 87.18% of the stock is currently owned by hedge funds and other 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.