ServiceNow (NYSE:NOW) Trading Up 2.4% – What’s Next?

ServiceNow, Inc. (NYSE:NOW) shares shot up 2.4% on Tuesday . The stock traded as high as $113.79 and last traded at $110.5730. 21,485,854 shares changed hands during trading, a decline of 11% from the average session volume of 24,056,816 shares. The stock had previously closed at $107.93.

Key Stories Impacting ServiceNow

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: ServiceNow is seeing renewed buying interest after Guggenheim pushed back on overly bearish “software extinction” worries, helping support a more constructive view of the company’s AI-driven growth story. Why ServiceNow Stock Is Climbing After Guggenheim Dismisses Software ‘Extinction’ Valuation
• Positive Sentiment: New government and defense AI partnerships are widening ServiceNow’s reach beyond standard workflow automation, including work tied to biosurveillance and state health systems, which could boost investor confidence in its long-term AI monetization. ServiceNow (NOW) Lands Defense And State AI Partnerships That Reach Beyond Workflows
• Positive Sentiment: Analysts and commentators are increasingly arguing that fears AI would disrupt ServiceNow’s software model look overstated, with recent coverage highlighting that the company’s reported numbers continue to hold up. ServiceNow Was the SaaS Stock AI Was Supposed to Kill. Its Numbers Say Otherwise.
• Neutral Sentiment: Some recent coverage focuses on valuation, asking whether ServiceNow is still worth a premium multiple after mixed returns, suggesting investors are still debating how much upside is already priced in. Is NOW (PSE:NOW) Still Worth A Premium P/E On Mixed Returns?
• Neutral Sentiment: Articles comparing ServiceNow with peers like UiPath and broader “contrarian alert” pieces are keeping the stock in the conversation, but they do not point to a clearly new catalyst on their own. Should You Buy ServiceNow Stock Instead of UiPath Stock?

Analysts Set New Price Targets

Several brokerages have commented on NOW. BMO Capital Markets lowered their price objective on shares of ServiceNow from $120.00 to $115.00 and set an “outperform” rating for the company in a research report on Thursday, April 23rd. Cantor Fitzgerald set a $130.00 price objective on ServiceNow in a research report on Monday, June 15th. KeyCorp set a $85.00 price objective on shares of ServiceNow and gave the stock an “underweight” rating in a research report on Thursday, April 23rd. HSBC dropped their price objective on shares of ServiceNow from $226.00 to $171.00 and set a “buy” rating for the company in a research note on Thursday, April 16th. Finally, Robert W. Baird decreased their target price on shares of ServiceNow from $125.00 to $118.00 and set an “outperform” rating on the stock in a research note on Thursday, April 23rd. One investment analyst has rated the stock with a Strong Buy rating, thirty-six have issued a Buy rating, four have given a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat, ServiceNow has an average rating of “Moderate Buy” and an average target price of $141.68.

ServiceNow Stock Performance

The company has a quick ratio of 0.84, a current ratio of 0.84 and a debt-to-equity ratio of 0.13. The company has a 50 day simple moving average of $100.53 and a 200-day simple moving average of $112.60. The stock has a market capitalization of $114.00 billion, a price-to-earnings ratio of 65.90, a price-to-earnings-growth ratio of 1.77 and a beta of 0.96.

ServiceNow (NYSE:NOW) last posted its earnings results on Wednesday, April 22nd. The information technology services provider reported $0.97 EPS for the quarter, hitting the consensus estimate of $0.97. ServiceNow had a net margin of 12.59% and a return on equity of 18.16%. The company had revenue of $3.77 billion during the quarter, compared to the consensus estimate of $3.75 billion. During the same period in the previous year, the firm posted $0.81 earnings per share. The firm’s revenue for the quarter was up 22.1% on a year-over-year basis. As a group, equities research analysts expect that ServiceNow, Inc. will post 2.34 EPS for the current fiscal year.

Insider Buying and Selling

In related news, Director Paul Edward Chamberlain sold 1,500 shares of the stock in a transaction dated Thursday, May 14th. The stock was sold at an average price of $87.23, for a total transaction of $130,845.00. Following the sale, the director owned 44,930 shares of the company’s stock, valued at approximately $3,919,243.90. This represents a 3.23% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Jacqueline P. Canney sold 8,927 shares of the firm’s stock in a transaction dated Friday, April 24th. The shares were sold at an average price of $89.60, for a total value of $799,859.20. Following the completion of the sale, the insider directly owned 29,531 shares in the company, 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. In the last 90 days, insiders have sold 28,071 shares of company stock valued at $2,529,956. 0.34% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Large investors have recently modified their holdings of the stock. Vanguard Group Inc. increased its stake in ServiceNow by 404.5% in the 4th quarter. Vanguard Group Inc. now owns 101,963,384 shares of the information technology services provider’s stock worth $15,619,771,000 after purchasing an additional 81,752,460 shares during the period. State Street Corp boosted its position in ServiceNow by 406.6% during the 4th quarter. State Street Corp now owns 47,896,597 shares of the information technology services provider’s stock valued at $7,337,280,000 after acquiring an additional 38,441,898 shares in the last quarter. Price T Rowe Associates Inc. MD grew its stake in ServiceNow by 371.0% in the fourth quarter. Price T Rowe Associates Inc. MD now owns 32,395,663 shares of the information technology services provider’s stock worth $4,962,692,000 after purchasing an additional 25,517,218 shares during the period. Geode Capital Management LLC increased its stake in shares of ServiceNow by 404.8% in the 4th 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 acquiring an additional 18,854,775 shares in the last quarter. Finally, Morgan Stanley increased its position in ServiceNow by 335.6% during the 4th quarter. Morgan Stanley now owns 22,733,483 shares of the information technology services provider’s stock valued at $3,482,543,000 after buying an additional 17,514,679 shares in the last quarter. Hedge funds and other institutional investors 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.