ServiceNow (NYSE:NOW) Trading Down 2.6% – Should You Sell?

Shares of ServiceNow, Inc. (NYSE:NOW) traded down 2.6% during trading on Wednesday . The company traded as low as $105.40 and last traded at $107.8730. Approximately 13,946,146 shares changed hands during trading, a decline of 42% from the average session volume of 24,001,809 shares. The stock had previously closed at $110.73.

ServiceNow News Summary

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: ServiceNow is benefiting from renewed interest in beaten-down software names as investors rotate out of high-flying semiconductors and back into enterprise software. ServiceNow (NOW) Stock Is Up, What You Need To Know
• Positive Sentiment: Guggenheim upgraded ServiceNow and dismissed the “software extinction” thesis, which supports the view that the company’s AI products and platform momentum can continue to drive earnings growth. This analyst upgraded Salesforce & ServiceNow, but not because they’ll be AI winners
• Positive Sentiment: ServiceNow also gained attention for new AI-related government and defense partnerships, including work tied to biosurveillance and public-sector modernization, which could expand its addressable market beyond standard workflow automation. ServiceNow (NOW) Lands Defense And State AI Partnerships That Reach Beyond Workflows
• Neutral Sentiment: Several articles this morning focused on valuation and investor interest, including a Zacks comparison with EPAM and commentary on whether NOW deserves a premium multiple. These pieces can keep the stock in focus but do not point to a clear near-term catalyst. EPAM or NOW: Which Is the Better Value Stock Right Now?
• Neutral Sentiment: ServiceNow remains a frequently watched stock, and CNBC mentions plus “most searched” coverage suggest sustained investor attention, but these headlines are more about sentiment than fundamentals. ServiceNow, Inc. (NOW) is Attracting Investor Attention: Here is What You Should Know
• Negative Sentiment: Broader software stocks were pressured by rising Middle East tensions, and that risk-off move likely weighed on ServiceNow along with peers such as Salesforce and Palantir. Palantir Leads Software Stocks Lower

Analysts Set New Price Targets

A number of analysts have recently issued reports on NOW shares. Mizuho cut their price target on shares of ServiceNow from $150.00 to $140.00 and set an “outperform” rating for the company in a report on Thursday, April 23rd. UBS Group reiterated an “outperform” rating on shares of ServiceNow in a research report on Tuesday, May 26th. KeyCorp set a $85.00 target price on ServiceNow and gave the stock an “underweight” rating in a research note on Thursday, April 23rd. Morgan Stanley reduced their target price on ServiceNow from $210.00 to $180.00 and set an “overweight” rating on the stock in a research report on Thursday, April 23rd. Finally, Wells Fargo & Company lowered their target price on shares of ServiceNow from $185.00 to $160.00 and set an “overweight” rating for the company in a research note on Thursday, April 23rd. One analyst has rated the stock with a Strong Buy rating, thirty-six have issued a Buy rating, four have assigned a Hold rating and one has assigned 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 $141.68.

ServiceNow Stock Down 2.6%

The business has a 50-day simple moving average of $101.40 and a 200-day simple moving average of $111.94. The company has a debt-to-equity ratio of 0.13, a quick ratio of 0.84 and a current ratio of 0.84. The company has a market cap of $111.22 billion, a price-to-earnings ratio of 64.29, a price-to-earnings-growth ratio of 1.80 and a beta of 0.96.

ServiceNow (NYSE:NOW) last released its earnings results on Wednesday, April 22nd. The information technology services provider reported $0.97 earnings per share for the quarter, hitting 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 net margin of 12.59% and a return on equity of 18.16%. The business’s quarterly revenue was up 22.1% compared to the same quarter last year. During the same period in the prior year, the firm earned $0.81 earnings per share. On average, equities analysts anticipate that ServiceNow, Inc. will post 2.34 earnings per share for the current fiscal year.

Insider Activity

In other news, insider Paul Fipps sold 1,048 shares of ServiceNow stock in a transaction on Monday, May 18th. The shares were sold at an average price of $98.51, for a total transaction of $103,238.48. Following the completion of the sale, the insider directly owned 12,072 shares of the company’s stock, valued at approximately $1,189,212.72. The trade was a 7.99% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. 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. Also, insider Jacqueline P. Canney sold 8,927 shares of the business’s stock in a transaction on Friday, April 24th. The stock was sold at an average price of $89.60, for a total transaction of $799,859.20. Following the transaction, the insider owned 29,531 shares of the company’s stock, valued at approximately $2,645,977.60. The trade was a 23.21% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last quarter, insiders have sold 28,071 shares of company stock worth $2,529,956. Insiders own 0.34% of the company’s stock.

Institutional Trading of ServiceNow

Institutional investors have recently bought and sold shares of the business. Teamwork Financial Advisors LLC boosted its holdings in ServiceNow by 389.2% in the second quarter. Teamwork Financial Advisors LLC now owns 154,649 shares of the information technology services provider’s stock valued at $15,354,000 after purchasing an additional 123,035 shares in the last quarter. Sonoma Allocations LLC raised its holdings in ServiceNow by 23.8% during the second quarter. Sonoma Allocations LLC now owns 3,875 shares of the information technology services provider’s stock worth $409,000 after purchasing an additional 746 shares in the last quarter. FNY Investment Advisers LLC raised its holdings in ServiceNow by 664.0% during the second quarter. FNY Investment Advisers LLC now owns 1,146 shares of the information technology services provider’s stock worth $113,000 after purchasing an additional 996 shares in the last quarter. Palouse Capital Management Inc. purchased a new stake in shares of ServiceNow during the 2nd quarter worth approximately $1,155,000. Finally, Elevation Wealth Partners LLC lifted its position in shares of ServiceNow by 8,251.2% during the 2nd quarter. Elevation Wealth Partners LLC now owns 3,424 shares of the information technology services provider’s stock worth $340,000 after buying an additional 3,383 shares during the last quarter. 87.18% of the stock is owned by hedge funds and other institutional investors.

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.