ServiceNow (NYSE:NOW) Shares Up 2.7% – Still a Buy?

Shares of ServiceNow, Inc. (NYSE:NOW) rose 2.7% on Thursday . The company traded as high as $103.71 and last traded at $103.2610. Approximately 27,153,050 shares changed hands during mid-day trading, an increase of 35% from the average daily volume of 20,113,057 shares. The stock had previously closed at $100.58.

More ServiceNow News

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: Goldman Sachs highlights “robust expansion opportunities in new domains” for ServiceNow, reinforcing a growth narrative that supports higher revenue multiple expectations. The note boosts investor confidence in multi‑year TAM expansion. Goldman Sachs Likes ServiceNow
• Positive Sentiment: Dan Ives (a prominent long/tech pundit) reiterates a bullish stance, naming ServiceNow among “software Armageddon” winners — a high‑profile endorsement that can drive short‑term flows and sentiment. Dan Ives Can’t Get Enough of These 2 Software Stocks
• Positive Sentiment: Analyst/industry writeups (Zacks, The Motley Fool) highlight accelerating product expansion — e.g., Now Assist, Raptor and other AI features — driving enterprise wins and a pathway to durable revenue expansion. Product monetization and AI integration are core bullish catalysts. ServiceNow’s Product Expansion Gains Pace
• Positive Sentiment: Market commentary argues AI disruption fears are overblown and lists ServiceNow as a recovery candidate, citing a $5B buyback authorization and strong cash flow — both supportive of share price stability and upside. AI Disruption Overblown! 4 Software Stocks to Buy on the Dip
• Neutral Sentiment: Barron’s highlights heavy short interest across software names and the potential for a short squeeze; that dynamic can amplify near‑term rallies but doesn’t change fundamentals. Software Stocks Look Primed for a Short Squeeze
• Neutral Sentiment: TheInformation’s deep dive (“What Investors Are Missing About ServiceNow”) may contain nuanced views on valuation, risks or underappreciated drivers; its conclusions could be mixed and are being parsed by investors. What Investors Are Missing About ServiceNow
• Positive Sentiment: Leadership update: ServiceNow appointed Danielle Fontaine as Chief Accounting Officer — a governance/finance hire that reduces execution risk around reporting and controls. ServiceNow Strengthens Finance Leadership
• Positive Sentiment: Third‑party ecosystem news: Bearing raised $4.5M to build physical security ops on the ServiceNow AI platform — signals growing ISV/partner activity that can expand platform usage and revenue over time. Bearing Raises $4.5M Oversubscribed Seed Round

Analyst Ratings Changes

NOW has been the subject of several analyst reports. Cantor Fitzgerald reiterated an “overweight” rating and set a $200.00 price objective on shares of ServiceNow in a research report on Thursday, January 29th. Macquarie Infrastructure decreased their target price on shares of ServiceNow from $172.00 to $140.00 and set a “neutral” rating for the company in a research report on Thursday, January 29th. Truist Financial set a $175.00 price objective on shares of ServiceNow in a report on Thursday, February 5th. Arete Research set a $200.00 price target on ServiceNow in a research report on Tuesday, January 6th. Finally, Wells Fargo & Company set a $225.00 price objective on ServiceNow and gave the company an “overweight” rating in a report on Thursday, January 8th. Three research analysts have rated the stock with a Strong Buy rating, thirty-three have assigned a Buy rating, six have assigned a Hold rating and two have issued a Sell rating to the stock. According to data from MarketBeat.com, ServiceNow has an average rating of “Moderate Buy” and a consensus target price of $193.01.

ServiceNow Stock Up 2.7%

The business has a 50-day moving average price of $140.70 and a 200-day moving average price of $165.88. The company has a market capitalization of $108.01 billion, a price-to-earnings ratio of 61.91, a price-to-earnings-growth ratio of 1.80 and a beta of 0.97. The company has a quick ratio of 1.00, a current ratio of 1.00 and a debt-to-equity ratio of 0.12.

ServiceNow (NYSE:NOW) last posted its quarterly earnings data on Wednesday, January 28th. The information technology services provider reported $0.92 EPS for the quarter, beating analysts’ consensus estimates of $0.89 by $0.03. The company had revenue of $3.57 billion during the quarter, compared to analyst estimates of $3.53 billion. ServiceNow had a net margin of 13.16% and a return on equity of 18.54%. The business’s quarterly revenue was up 20.7% on a year-over-year basis. During the same period in the prior year, the firm earned $0.73 earnings per share. As a group, equities analysts anticipate that ServiceNow, Inc. will post 8.93 earnings per share for the current fiscal year.

Insider Activity at ServiceNow

In other news, Director Lawrence Jackson sold 1,325 shares of the company’s stock in a transaction dated Friday, November 28th. The stock was sold at an average price of $162.04, for a total value of $214,708.30. Following the transaction, the director owned 1,615 shares in the company, valued at $261,701.06. This represents a 45.07% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, Vice Chairman Nicholas Tzitzon sold 2,610 shares of the stock in a transaction that occurred on Tuesday, November 18th. The stock was sold at an average price of $165.42, for a total transaction of $431,735.76. Following the completion of the sale, the insider directly owned 15,000 shares of the company’s stock, valued at $2,481,240. This trade represents a 14.82% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last 90 days, insiders sold 14,670 shares of company stock worth $2,424,481. Insiders own 0.34% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently bought and sold shares of the company. Vanguard Group Inc. increased its holdings in ServiceNow by 404.5% in the fourth quarter. Vanguard Group Inc. now owns 101,963,384 shares of the information technology services provider’s stock worth $15,619,771,000 after buying an additional 81,752,460 shares during the last quarter. Geode Capital Management LLC increased its position in ServiceNow by 404.8% during the fourth quarter. Geode Capital Management LLC now owns 23,512,428 shares of the information technology services provider’s stock worth $3,591,425,000 after buying an additional 18,854,775 shares during the last quarter. Norges Bank bought a new position in ServiceNow during the fourth quarter valued at about $2,020,992,000. Capital International Investors lifted its position in shares of ServiceNow by 396.0% in the fourth quarter. Capital International Investors now owns 10,393,373 shares of the information technology services provider’s stock worth $1,592,310,000 after buying an additional 8,297,818 shares during the last quarter. Finally, Nuveen LLC boosted its stake in shares of ServiceNow by 342.6% during the 4th quarter. Nuveen LLC now owns 9,530,753 shares of the information technology services provider’s stock worth $1,460,016,000 after acquiring an additional 7,377,244 shares in 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.