ServiceNow (NYSE:NOW) Shares Down 4.5% – Here’s What Happened

ServiceNow, Inc. (NYSE:NOW) was down 4.5% during trading on Thursday . The company traded as low as $89.39 and last traded at $89.5890. 20,757,962 shares changed hands during mid-day trading, a decline of 14% from the average session volume of 24,149,221 shares. The stock had previously closed at $93.80.

ServiceNow News Summary

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: ServiceNow continues to add strategic AI-related partnerships, including deeper collaboration with Google Cloud and HCLTech, which could expand enterprise AI agent use cases and reinforce demand for its workflow platform.
• Positive Sentiment: Analysts remain constructive on the business, with coverage highlighting ServiceNow’s pricing power and high-margin growth potential, and another note calling the company an excellent business trading at a discount.
• Positive Sentiment: Recent commentary also emphasized ServiceNow’s steady revenue growth versus peers, supporting the view that its operating momentum remains intact even as broader software stocks have been volatile.
• Neutral Sentiment: ServiceNow remains a high-profile stock with elevated investor attention, which can keep trading active but does not by itself change the fundamentals.
• Negative Sentiment: The stock has also been weighed down by broader concerns about AI disruption to enterprise software and by a recent dip versus the broader market, suggesting investors are still questioning how much near-term upside is already priced in.

Wall Street Analysts Forecast Growth

A number of research firms have recently weighed in on NOW. Mizuho cut their price target on ServiceNow from $150.00 to $140.00 and set an “outperform” rating for the company in a research note on Thursday, April 23rd. Bank of America began coverage on ServiceNow in a report on Monday, May 18th. They issued a “buy” rating and a $130.00 price objective on the stock. Citic Securities cut their price objective on shares of ServiceNow from $168.00 to $140.00 and set a “buy” rating on the stock in a research report on Thursday, May 21st. Raymond James Financial reduced their target price on shares of ServiceNow from $160.00 to $130.00 and set an “outperform” rating for the company in a research note on Thursday, April 23rd. Finally, BTIG Research restated a “buy” rating and set a $150.00 price target on shares of ServiceNow in a research note on Monday, May 4th. One investment analyst has rated the stock with a Strong Buy rating, thirty-five have issued a Buy rating, five have issued a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $142.17.

ServiceNow Stock Down 4.5%

The firm has a 50-day moving average of $99.98 and a two-hundred day moving average of $115.96. The firm has a market cap of $92.37 billion, a price-to-earnings ratio of 53.39, a PEG ratio of 1.60 and a beta of 0.94. 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 released its earnings results on Wednesday, April 22nd. The information technology services provider reported $0.97 earnings per share (EPS) for the quarter, meeting analysts’ consensus estimates of $0.97. The firm had revenue of $3.77 billion for the quarter, compared to analyst estimates of $3.75 billion. ServiceNow had a return on equity of 18.16% and a net margin of 12.59%.The company’s revenue was up 22.1% on a year-over-year basis. During the same quarter last year, the firm posted $0.81 EPS. As a group, sell-side analysts predict that ServiceNow, Inc. will post 2.34 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other news, insider Jacqueline P. Canney sold 8,927 shares of the firm’s stock in a transaction on Friday, April 24th. The shares were sold at an average price of $89.60, for a total value of $799,859.20. Following the sale, the insider owned 29,531 shares in the company, valued at approximately $2,645,977.60. This trade represents a 23.21% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, insider Paul Fipps sold 1,048 shares of the business’s stock in a transaction on Monday, May 18th. The stock was sold at an average price of $98.51, for a total transaction of $103,238.48. Following the transaction, the insider directly owned 12,072 shares in the company, valued at $1,189,212.72. This trade represents a 7.99% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold a total of 28,071 shares of company stock valued at $2,529,956 over the last ninety days. 0.34% of the stock is owned by insiders.

Institutional Investors Weigh In On ServiceNow

Several hedge funds have recently made changes to their positions in the stock. Meridian Wealth Advisors LLC increased its holdings in shares of ServiceNow by 2.2% during the 3rd quarter. Meridian Wealth Advisors LLC now owns 552 shares of the information technology services provider’s stock worth $508,000 after buying an additional 12 shares during the last quarter. Catalyst Financial Partners LLC boosted its holdings in ServiceNow by 1.0% in the third quarter. Catalyst Financial Partners LLC now owns 1,270 shares of the information technology services provider’s stock valued at $1,169,000 after acquiring an additional 13 shares during the last quarter. JT Stratford LLC grew its position in ServiceNow by 3.5% during the third quarter. JT Stratford LLC now owns 385 shares of the information technology services provider’s stock valued at $354,000 after acquiring an additional 13 shares during the period. Florida Financial Advisors LLC grew its position in ServiceNow by 5.4% during the second quarter. Florida Financial Advisors LLC now owns 273 shares of the information technology services provider’s stock valued at $280,000 after acquiring an additional 14 shares during the period. Finally, Cozad Asset Management Inc. increased its stake in ServiceNow by 6.7% during the third quarter. Cozad Asset Management Inc. now owns 223 shares of the information technology services provider’s stock worth $205,000 after acquiring an additional 14 shares during the last quarter. 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.