Morgan Stanley Cuts ServiceNow (NYSE:NOW) Price Target to $180.00

ServiceNow (NYSE:NOW) had its price objective lowered by equities researchers at Morgan Stanley from $210.00 to $180.00 in a research report issued on Thursday,MarketScreener reports. The brokerage currently has an “overweight” rating on the information technology services provider’s stock. Morgan Stanley’s price target suggests a potential upside of 107.34% from the company’s current price.

Several other brokerages also recently weighed in on NOW. UBS Group downgraded shares of ServiceNow from a “buy” rating to a “neutral” rating and lowered their price target for the company from $170.00 to $100.00 in a report on Friday, April 10th. Arete Research set a $200.00 target price on shares of ServiceNow in a report on Tuesday, January 6th. Mizuho set a $150.00 price target on ServiceNow and gave the company an “outperform” rating in a report on Tuesday, April 14th. Stifel Nicolaus dropped their price objective on ServiceNow from $180.00 to $135.00 and set a “buy” rating for the company in a research note on Thursday, April 2nd. Finally, Wall Street Zen downgraded ServiceNow from a “buy” rating to a “hold” rating in a research note on Saturday, February 28th. Three investment analysts have rated the stock with a Strong Buy rating, thirty-four have assigned a Buy rating, six have assigned a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and an average target price of $155.86.

ServiceNow Stock Performance

ServiceNow stock traded down $16.26 during trading on Thursday, reaching $86.81. The company had a trading volume of 17,589,364 shares, compared to its average volume of 20,024,004. The firm’s 50-day simple moving average is $105.55 and its 200 day simple moving average is $138.83. ServiceNow has a 52 week low of $81.24 and a 52 week high of $211.48. The company has a current ratio of 1.00, a quick ratio of 1.00 and a debt-to-equity ratio of 0.12. The firm has a market capitalization of $89.95 billion, a price-to-earnings ratio of 52.17, a price-to-earnings-growth ratio of 1.68 and a beta of 1.01.

ServiceNow (NYSE:NOW) last issued its quarterly earnings results on Wednesday, April 22nd. The information technology services provider reported $0.97 EPS for the quarter, hitting analysts’ consensus estimates of $0.97. ServiceNow had a return on equity of 18.54% and a net margin of 13.16%.The business had revenue of $3.77 billion during the quarter, compared to analysts’ expectations of $3.75 billion. During the same quarter in the prior year, the business posted $4.04 earnings per share. The business’s quarterly revenue was up 22.1% on a year-over-year basis. Sell-side analysts forecast that ServiceNow will post 2.49 earnings per share for the current fiscal year.

Insider Activity

In related news, Director Paul Edward Chamberlain sold 1,500 shares of the business’s stock in a transaction dated Thursday, February 12th. The stock was sold at an average price of $101.17, for a total value of $151,755.00. Following the sale, the director directly owned 46,430 shares in the company, valued at approximately $4,697,323.10. The trade was a 3.13% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, insider Kevin Thomas Mcbride sold 1,400 shares of the stock in a transaction that occurred on Friday, February 13th. The shares were sold at an average price of $105.71, for a total value of $147,994.00. Following the transaction, the insider directly owned 26,314 shares of the company’s stock, valued at approximately $2,781,652.94. The trade was a 5.05% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 16,237 shares of company stock worth $1,697,162 over the last 90 days. Corporate insiders own 0.34% of the company’s stock.

Institutional Trading of ServiceNow

Hedge funds have recently modified their holdings of the company. IAG Wealth Partners LLC increased its position in ServiceNow by 200.0% in the third quarter. IAG Wealth Partners LLC now owns 27 shares of the information technology services provider’s stock worth $25,000 after purchasing an additional 18 shares during the last quarter. Bogart Wealth LLC raised its stake in ServiceNow by 93.8% during the third quarter. Bogart Wealth LLC now owns 31 shares of the information technology services provider’s stock valued at $29,000 after purchasing an additional 15 shares in the last quarter. Wealth Watch Advisors INC bought a new position in ServiceNow during the third quarter valued at $29,000. Albion Financial Group UT grew its stake in shares of ServiceNow by 78.9% in the 3rd quarter. Albion Financial Group UT now owns 34 shares of the information technology services provider’s stock worth $31,000 after buying an additional 15 shares in the last quarter. Finally, True Wealth Design LLC increased its holdings in shares of ServiceNow by 52.0% in the 3rd quarter. True Wealth Design LLC now owns 38 shares of the information technology services provider’s stock worth $35,000 after buying an additional 13 shares during 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: Q1 subscription revenue and top-line: Subscription revenue grew ~22% YoY and overall Q1 revenue slightly beat consensus, showing continued demand for ServiceNow’s AI-driven platform. BusinessWire Q1 Release
• Positive Sentiment: Company raised its annual subscription revenue outlook, citing stronger AI adoption — a sign management sees sustainable demand for Now Assist and related products. Reuters: Boosts Outlook
• Neutral Sentiment: Strategic moves: ServiceNow closed the Armis acquisition to expand into OT/IoT/cyber asset visibility and announced deeper Google Cloud AI integrations — positive long-term product synergy but with short-term execution risk. Yahoo: Google Cloud Partnership
• Neutral Sentiment: Management tone and events calendar: CEO emphasized AI-driven productivity and an Analyst Day is scheduled for May 4 — useful for forward guidance clarity. Investors.com: Analyst Day
• Negative Sentiment: Middle East deal delays: Management said delayed large deals in the Middle East created ~75 bps of subscription-revenue headwind in Q1 and could push some closures into later quarters — an immediate growth and sentiment headwind. Yahoo: Deal Delays
• Negative Sentiment: Margins to be pressured by Armis purchase: ServiceNow warned the acquisition will create a roughly 75‑bp FY operating-margin headwind (125 bps in Q2), which contributed to investor concern about near-term profitability. WSJ: Armis Margin Impact
• Negative Sentiment: Market reaction and analyst moves: Despite the beat, sentiment soured — multiple shops trimmed price targets and the stock drew higher short interest amid broader AI/disruption worries, amplifying the selloff. Finviz: Analyst PT Cuts Reuters: Short Interest

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.