ServiceNow (NYSE:NOW) Trading Down 5.2% – Time to Sell?

ServiceNow, Inc. (NYSE:NOW)’s share price fell 5.2% during mid-day trading on Tuesday . The company traded as low as $102.61 and last traded at $105.4430. Approximately 6,956,843 shares traded hands during trading, a decline of 71% from the average session volume of 23,619,059 shares. The stock had previously closed at $111.26.

Key Stories Impacting ServiceNow

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: UBS raised its price target on ServiceNow to $115 from $100 and kept a neutral rating, signaling stable demand expectations and modest upside potential. Street Insider
• Positive Sentiment: Recent commentary says ServiceNow’s AI strategy may be an opportunity rather than a threat, with the company raising its Now Assist AI targets and positioning AI as a premium add-on across workflow products. Yahoo Finance
• Positive Sentiment: New partner announcements, including C1Secure’s SmartRAMP 20x and Empower AI’s GSA enterprise IT award, highlight continued ecosystem activity around the ServiceNow platform. Yahoo Finance
• Neutral Sentiment: Several opinion pieces and stock screeners discussed ServiceNow’s long-term software rebound and relative attractiveness versus peers, but these were not direct catalysts. Seeking Alpha
• Neutral Sentiment: Analysts and commentators continue to debate ServiceNow’s valuation versus peers, with some noting AI-driven growth but also margin pressure from acquisitions. Zacks
• Negative Sentiment: ServiceNow and other enterprise software names moved lower after IBM’s disappointing preliminary quarterly results raised concern about broader tech spending and sentiment. TipRanks

Wall Street Analysts Forecast Growth

Several equities analysts have recently commented on NOW shares. Bank of America initiated coverage on shares of ServiceNow in a research report on Monday, May 18th. They issued a “buy” rating and a $130.00 target price for the company. BMO Capital Markets reduced their price target on shares of ServiceNow from $120.00 to $115.00 and set an “outperform” rating on the stock in a research report on Thursday, April 23rd. Canaccord Genuity Group decreased their price objective on shares of ServiceNow from $200.00 to $145.00 and set a “buy” rating on the stock in a research note on Thursday, April 23rd. Jefferies Financial Group restated a “buy” rating and set a $135.00 price objective (down from $175.00) on shares of ServiceNow in a research report on Thursday, April 23rd. Finally, Robert W. Baird cut their target price on ServiceNow from $125.00 to $118.00 and set an “outperform” rating for the company in a research note on Thursday, April 23rd. One research analyst has rated the stock with a Strong Buy rating, thirty-five have issued a Buy rating, four have assigned a Hold rating and two have issued a Sell rating to the company’s stock. According to data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and an average price target of $140.60.

ServiceNow Trading Down 3.4%

The business’s 50 day moving average price is $102.95 and its two-hundred day moving average price is $110.65. The company has a current ratio of 0.84, a quick ratio of 0.84 and a debt-to-equity ratio of 0.13. The company has a market capitalization of $110.80 billion, a price-to-earnings ratio of 64.10, a P/E/G ratio of 1.79 and a beta of 0.96.

ServiceNow (NYSE:NOW) last announced its quarterly earnings results on Wednesday, April 22nd. The information technology services provider reported $0.97 earnings per share (EPS) for the quarter, meeting the consensus estimate of $0.97. The company 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 firm’s revenue was up 22.1% on a year-over-year basis. During the same period in the previous year, the firm posted $0.81 EPS. On average, equities analysts predict that ServiceNow, Inc. will post 2.34 earnings per share for the current fiscal year.

Insider Activity at ServiceNow

In other news, insider Paul Fipps sold 1,048 shares of the stock in a transaction on Monday, May 18th. The stock was sold at an average price of $98.51, for a total value of $103,238.48. Following the completion of the transaction, the insider directly owned 12,072 shares in the company, valued at approximately $1,189,212.72. This represents a 7.99% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. 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, Director Anita M. Sands sold 16,445 shares of the firm’s stock in a transaction on Thursday, May 14th. The shares were sold at an average price of $90.14, for a total value of $1,482,352.30. Following the sale, the director directly owned 30,090 shares in the company, valued at approximately $2,712,312.60. This trade represents a 35.34% decrease in their position. The SEC filing for this sale provides additional information. In the last ninety days, insiders sold 28,071 shares of company stock worth $2,529,956. Corporate insiders own 0.34% of the company’s stock.

Hedge Funds Weigh In On ServiceNow

Several large investors have recently bought and sold shares of NOW. Noble Wealth Management PBC boosted its position in ServiceNow by 400.0% during the 4th quarter. Noble Wealth Management PBC now owns 160 shares of the information technology services provider’s stock worth $25,000 after buying an additional 128 shares during the period. Millstone Evans Group LLC raised its stake in shares of ServiceNow by 400.0% during the fourth quarter. Millstone Evans Group LLC now owns 165 shares of the information technology services provider’s stock valued at $25,000 after acquiring an additional 132 shares during the last quarter. CBIZ Investment Advisory Services LLC raised its stake in shares of ServiceNow by 540.0% during the fourth quarter. CBIZ Investment Advisory Services LLC now owns 160 shares of the information technology services provider’s stock valued at $25,000 after acquiring an additional 135 shares during the last quarter. Blueline Advisors LLC acquired a new position in shares of ServiceNow during the fourth quarter worth $25,000. Finally, Measured Wealth Private Client Group LLC lifted its holdings in shares of ServiceNow by 560.0% during the fourth quarter. Measured Wealth Private Client Group LLC now owns 165 shares of the information technology services provider’s stock worth $25,000 after purchasing an additional 140 shares during the period. 87.18% of the stock is currently owned by 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.