Capital One Financial Cuts ServiceNow (NYSE:NOW) Price Target to $113.00

Key Points

• Capital One Financial cut ServiceNow's price target to $113 from $158 while keeping an "overweight" rating, implying about 15% upside from the prior close.
• Analyst coverage is mixed with several recent target cuts (e.g., Goldman, Evercore, BMO) driving volatility, but MarketBeat's consensus remains a "Moderate Buy" with a $173.46 consensus target.
• ServiceNow is trading near $98 with a >40% YTD decline, yet large institutions (notably Vanguard and State Street) massively increased stakes in Q4 and institutional ownership is roughly 87%.

ServiceNow (NYSE:NOW - Get Free Report) had its price objective cut by Capital One Financial from $158.00 to $113.00 in a research report issued to clients and investors on Thursday,MarketScreener reports. The brokerage presently has an "overweight" rating on the information technology services provider's stock. Capital One Financial's target price suggests a potential upside of 15.06% from the company's previous close.

A number of other equities analysts have also issued reports on NOW. DZ Bank raised shares of ServiceNow to a "strong-buy" rating in a research report on Thursday, December 18th. The Goldman Sachs Group dropped their price objective on shares of ServiceNow from $216.00 to $188.00 and set a "buy" rating on the stock in a report on Tuesday, April 7th. BNP Paribas Exane upgraded shares of ServiceNow from a "neutral" rating to an "outperform" rating and set a $140.00 target price for the company in a research note on Monday, March 16th. Argus upgraded ServiceNow to a "strong-buy" rating in a research note on Wednesday, February 4th. Finally, Evercore reaffirmed an "outperform" rating and issued a $175.00 price target (down from $225.00) on shares of ServiceNow in a report on Thursday, January 29th. Three investment analysts have rated the stock with a Strong Buy rating, thirty-four have given a Buy rating, six have given a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and a consensus target price of $173.46.

ServiceNow Trading Up 4.3%

ServiceNow stock opened at $98.21 on Thursday. ServiceNow has a 52 week low of $81.24 and a 52 week high of $211.48. The company has a debt-to-equity ratio of 0.12, a quick ratio of 1.00 and a current ratio of 1.00. The firm has a market capitalization of $101.76 billion, a PE ratio of 58.75, a PEG ratio of 1.47 and a beta of 1.01. The business's 50-day simple moving average is $105.93 and its 200-day simple moving average is $141.78.

ServiceNow (NYSE:NOW - Get Free Report) last announced its earnings results on Wednesday, January 28th. The information technology services provider reported $0.92 earnings per share for the quarter, beating the consensus estimate of $0.89 by $0.03. ServiceNow had a return on equity of 18.54% and a net margin of 13.16%.The firm had revenue of $3.57 billion during the quarter, compared to the consensus estimate of $3.53 billion. During the same quarter in the prior year, the company earned $0.73 EPS. The firm's revenue for the quarter was up 20.7% compared to the same quarter last year. Equities research analysts forecast that ServiceNow will post 8.93 earnings per share for the current year.

Insider Activity at ServiceNow

In other news, insider Kevin Thomas Mcbride sold 1,400 shares of the business's stock in a transaction on Friday, February 13th. The shares were sold at an average price of $105.71, for a total value of $147,994.00. Following the sale, the insider owned 26,314 shares in the company, valued at approximately $2,781,652.94. The trade was a 5.05% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, Director Paul Edward Chamberlain sold 1,500 shares of the company's stock in a transaction dated Thursday, February 12th. The stock was sold at an average price of $101.17, for a total transaction of $151,755.00. Following the completion of the sale, the director directly owned 46,430 shares in the company, valued at approximately $4,697,323.10. The trade was a 3.13% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 16,237 shares of company stock valued at $1,697,162 in the last 90 days. 0.34% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

A number of institutional investors have recently made changes to their positions in NOW. Vanguard Group Inc. raised its position in shares of ServiceNow by 404.5% during the fourth quarter. Vanguard Group Inc. now owns 101,963,384 shares of the information technology services provider's stock worth $15,619,771,000 after acquiring an additional 81,752,460 shares during the last quarter. State Street Corp raised its position in shares of 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 during the last quarter. Price T Rowe Associates Inc. MD lifted its stake in shares of ServiceNow by 371.0% in the 4th quarter. Price T Rowe Associates Inc. MD now owns 32,395,663 shares of the information technology services provider's stock valued at $4,962,692,000 after purchasing an additional 25,517,218 shares during the period. Geode Capital Management LLC boosted its position 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 purchasing an additional 18,854,775 shares during the last quarter. Finally, Morgan Stanley grew its stake in shares of ServiceNow by 335.6% during the fourth quarter. Morgan Stanley now owns 22,733,483 shares of the information technology services provider's stock worth $3,482,543,000 after purchasing an additional 17,514,679 shares during the period. 87.18% of the stock is owned by institutional investors.

Key Stories Impacting ServiceNow

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: Jim Cramer flagged ServiceNow as able to go higher, noting an expanded buyback and CEO stock purchases that can support the share price and investor sentiment. Jim Cramer on ServiceNow: “It Can Go Higher”
• Positive Sentiment: Market “risk-on” flows tied to reports of potential peace negotiations lifted growth/software names, helping ServiceNow recover as investors rotate into high‑margin, AI-exposed enterprise software. Why Is ServiceNow (NOW) Stock Rocketing Higher Today
• Positive Sentiment: Company expansion and AI execution: ServiceNow is adding data centers and expanding its AI Workflow Hub in Brazil, signaling international AI adoption and revenue expansion opportunities. ServiceNow Expands AI Workflow Hub In Brazil
• Positive Sentiment: Analysts and media point to early signs of AI-driven demand and a modest Q1 beat potential, which supports near‑term upside into earnings. ServiceNow Seen Delivering Modest Q1 Beat
• Neutral Sentiment: Industry commentary compares ServiceNow to peers for short candidates but generally favors Shopify as the more exposed name — this piece is more about relative valuation than an immediate catalyst for NOW. ServiceNow vs Shopify: Which Is the Better Short Candidate Right Now?
• Neutral Sentiment: Partner and integration news (TrustCloud integration, SAM partner recognition) and analyst coverage naming ServiceNow among top software names add to the positive narrative but are incremental vs. earnings and macro drivers. TrustCloud Brings AI-Driven Cyber Risk Automation Directly Into ServiceNow
• Negative Sentiment: Multiple analysts trimmed price targets this morning (TD Cowen to $140, Robert W. Baird to $125, BMO to $120 and others), which increases headline volatility and has been a key driver of the stock’s larger YTD decline; several stories note the stock has fallen sharply this year. Benzinga: Analyst Price Target Cuts MarketScreener: BMO Lowers Target
• Negative Sentiment: Coverage highlighting the stock’s roughly 40%+ YTD drop and articles asking whether the selloff is a buying opportunity keep downside pressure by emphasizing execution risk and high prior multiples. Blockonomi: NOW Stock Plunges 43% — Time to Buy?

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.

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