ServiceNow (NYSE:NOW) Shares Up 8.9% – Here’s What Happened

Shares of ServiceNow, Inc. (NYSE:NOW) shot up 8.9% during mid-day trading on Monday . The company traded as high as $104.68 and last traded at $103.5170. 50,420,333 shares traded hands during mid-day trading, an increase of 130% from the average session volume of 21,940,248 shares. The stock had previously closed at $95.07.

Key ServiceNow News

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: Bank of America restarted coverage on ServiceNow with a Buy rating and $130 target, saying the company could serve as a control center for agentic AI workflows. BofA Reinstates Coverage of ServiceNow, Salesforce. It Says 1 Is an AI Beneficiary.
• Positive Sentiment: Several recent articles say Wall Street is warming up to ServiceNow as a potential AI winner, with the stock viewed as oversold relative to its growth prospects. Wall Street Is Warming Up to ServiceNow Stock. That’s Because It’s Now a Bet on Agentic AI.
• Positive Sentiment: Commentary noted that ServiceNow’s recent results still showed solid underlying business momentum, including annual revenue of about $13.96 billion and net income of $1.76 billion, helping support the bull case despite the share-price decline. Assessing ServiceNow (NOW) Valuation After A Year Of Sharp Share Price Declines
• Neutral Sentiment: Broader software-sector rotation also helped the stock, as investors moved back into enterprise software names after earlier AI-disruption fears pressured the group. ServiceNow and Snowflake Stocks Trade Up, What You Need To Know
• Negative Sentiment: Some analysts and commentators still point to lingering valuation and AI-disruption concerns after a large year-long decline, suggesting the rebound could remain volatile. After a 50% Drop, Is ServiceNow Stock Worth Buying?

Analyst Upgrades and Downgrades

A number of brokerages have recently issued reports on NOW. Raymond James Financial dropped their target price on shares of ServiceNow from $160.00 to $130.00 and set an “outperform” rating on the stock in a report on Thursday, April 23rd. BMO Capital Markets decreased their price target on shares of ServiceNow from $120.00 to $115.00 and set an “outperform” rating on the stock in a research note on Thursday, April 23rd. Macquarie Infrastructure decreased their price target on shares of ServiceNow from $172.00 to $140.00 and set a “neutral” rating on the stock in a research note on Thursday, January 29th. Royal Bank Of Canada reiterated an “outperform” rating and issued a $121.00 price target on shares of ServiceNow in a research note on Tuesday, May 5th. Finally, Truist Financial decreased their price target on shares of ServiceNow from $125.00 to $120.00 and set a “buy” rating on the stock in a research note on Thursday, April 23rd. Two analysts have rated the stock with a Strong Buy rating, thirty-three have given a Buy rating, six have issued a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and a consensus target price of $141.89.

ServiceNow Stock Performance

The stock’s 50 day moving average is $99.72 and its 200 day moving average is $127.48. The firm has a market cap of $106.33 billion, a price-to-earnings ratio of 61.46, a price-to-earnings-growth ratio of 1.76 and a beta of 0.82. The company has a current ratio of 0.84, a quick ratio of 0.84 and a debt-to-equity ratio of 0.13.

ServiceNow (NYSE:NOW) last announced its earnings results on Wednesday, April 22nd. The information technology services provider reported $0.97 earnings per share (EPS) for the quarter, hitting analysts’ consensus estimates of $0.97. ServiceNow had a net margin of 12.59% and a return on equity of 18.16%. The firm had revenue of $3.77 billion for the quarter, compared to analyst estimates of $3.75 billion. During the same quarter in the prior year, the business posted $0.81 EPS. The business’s revenue was up 22.1% compared to the same quarter last year. Analysts anticipate that ServiceNow, Inc. will post 2.35 earnings per share for the current year.

Insider Buying and Selling at ServiceNow

In other ServiceNow news, insider Paul Fipps sold 3,696 shares of the stock in a transaction that occurred on Monday, February 23rd. The shares were sold at an average price of $101.77, for a total transaction of $376,141.92. Following the transaction, the insider owned 8,061 shares in the company, valued at $820,367.97. This represents a 31.44% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, Director Anita M. Sands sold 16,445 shares of the stock in a transaction that occurred on Thursday, May 14th. The stock was sold at an average price of $90.14, for a total transaction of $1,482,352.30. Following the transaction, the director owned 30,090 shares in the company, valued at approximately $2,712,312.60. The trade was a 35.34% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last quarter, insiders have sold 31,767 shares of company stock worth $2,906,098. 0.34% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently made changes to their positions in the business. IAG Wealth Partners LLC lifted its holdings 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 worth $25,000 after acquiring an additional 18 shares during the period. Wealth Watch Advisors INC bought a new stake in shares of ServiceNow during the 3rd quarter worth approximately $29,000. Texas Capital Bancshares Inc TX bought a new stake in shares of ServiceNow during the 3rd quarter worth approximately $37,000. Ameriflex Group Inc. lifted its holdings in shares of ServiceNow by 187.5% during the 3rd quarter. Ameriflex Group Inc. now owns 46 shares of the information technology services provider’s stock worth $42,000 after acquiring an additional 30 shares during the period. Finally, Kelleher Financial Advisors bought a new stake in shares of ServiceNow during the 3rd quarter worth approximately $50,000. Institutional investors and hedge funds own 87.18% of the company’s stock.

About ServiceNow

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.