ServiceNow, Inc. (NYSE:NOW) Stock Has Average Target Price of $154.50

Key Points

• Analyst sentiment is broadly positive: 40 of 43 covering firms rate ServiceNow a Buy or Strong Buy, giving it a “Moderate Buy” consensus and an average 12-month price target of $154.50.
• Latest quarterly results were mixed: Revenue rose 20.5% year over year to $4.11 billion, topping estimates, while EPS of $1.00 narrowly missed the $1.02 consensus.
• AI presents both opportunity and risk: ServiceNow and Kyndryl launched an AI-powered autonomous-operations offering, while new AI tools from Anthropic have fueled concerns about competition and weighed on software shares.

ServiceNow, Inc. (NYSE:NOW - Get Free Report) has earned an average recommendation of "Moderate Buy" from the forty-three research firms that are currently covering the company, MarketBeat reports. Three analysts have rated the stock with a sell recommendation, three have issued a hold recommendation, thirty-six have given a buy recommendation and one has assigned a strong buy recommendation to the company. The average 1-year price objective among brokerages that have issued a report on the stock in the last year is $154.50.

A number of analysts have commented on the company. Bank of America upped their price target on ServiceNow from $130.00 to $150.00 and gave the stock a "buy" rating in a research report on Wednesday, August 19th. Royal Bank Of Canada set a $165.00 target price on ServiceNow and gave the company an "outperform" rating in a research report on Thursday, October 29th. The Goldman Sachs Group reiterated a "buy" rating on shares of ServiceNow in a research report on Monday, August 3rd. KeyCorp reiterated an "underweight" rating and set a $110.00 price objective (up from $85.00) on shares of ServiceNow in a research report on Thursday, October 29th. Finally, Oppenheimer reaffirmed an "outperform" rating and set a $165.00 target price on shares of ServiceNow in a research note on Thursday, October 29th.

ServiceNow Trading Down 3.3%

Shares of NOW opened at $99.35 on Wednesday. The firm's 50-day moving average price is $134.49 and its 200-day moving average price is $114.55. The company has a current ratio of 0.72, a quick ratio of 0.72 and a debt-to-equity ratio of 0.42. The firm has a market capitalization of $103.13 billion, a price-to-earnings ratio of 71.48, a PEG ratio of 2.01 and a beta of 1.00. ServiceNow has a 1-year low of $81.24 and a 1-year high of $175.00.

ServiceNow (NYSE:NOW - Get Free Report) last issued its quarterly earnings results on Wednesday, October 28th. The information technology services provider reported $1.00 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.02 by ($0.02). ServiceNow had a return on equity of 15.17% and a net margin of 9.36%. The business had revenue of $4.11 billion during the quarter, compared to the consensus estimate of $4.09 billion. During the same quarter in the previous year, the business earned $4.82 earnings per share. The firm's revenue was up 20.5% compared to the same quarter last year. Sell-side analysts anticipate that ServiceNow will post 2.12 EPS for the current year.

Insider Transactions at ServiceNow

In other news, Director Paul Chamberlain sold 2,700 shares of the stock in a transaction that occurred on Thursday, August 27th. The shares were sold at an average price of $135.50, for a total transaction of $365,850.00. Following the transaction, the director directly owned 43,990 shares in the company, valued at approximately $5,960,645. This trade represents a 5.78% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, insider Jacqueline Canney sold 1,289 shares of ServiceNow stock in a transaction that occurred on Monday, November 9th. The shares were sold at an average price of $101.70, for a total transaction of $131,091.30. Following the transaction, the insider directly owned 30,042 shares in the company, valued at approximately $3,055,271.40. The trade was a 4.11% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. 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. In the last quarter, insiders sold 15,370 shares of company stock valued at $2,068,995. Company insiders own 0.34% of the company's stock.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently made changes to their positions in NOW. Cornerstone Financial Management LLC lifted its stake in shares of ServiceNow by 72.8% during the 2nd quarter. Cornerstone Financial Management LLC now owns 254 shares of the information technology services provider's stock worth $25,000 after purchasing an additional 107 shares during the last quarter. Marquette Asset Management LLC grew its stake in ServiceNow by 75.0% in the second quarter. Marquette Asset Management LLC now owns 301 shares of the information technology services provider's stock valued at $30,000 after purchasing an additional 129 shares during the last quarter. Kilter Group LLC purchased a new position in ServiceNow in the second quarter valued at about $31,000. Solstein Capital LLC purchased a new position in ServiceNow in the second quarter valued at about $35,000. Finally, Pathway Financial Advisers LLC bought a new position in ServiceNow in the third quarter worth about $38,000. 87.18% of the stock is currently owned by hedge funds and other institutional investors.

ServiceNow News Summary

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: Kyndryl and ServiceNow launched a jointly developed autonomous-operations offering on the ServiceNow Store. The AI-powered product is designed to improve productivity and automate IT issue resolution, supporting the case for ServiceNow’s AI opportunity. Kyndryl expands partnership with ServiceNow
• Positive Sentiment: Broward County, Florida, has gone live with ServiceNow’s IT Service Management and Workflow Data Fabric, providing a concrete public-sector deployment that may help demonstrate customer adoption of its workflow platform. Broward County selects ServiceNow
• Neutral Sentiment: Institutional ownership reports were mixed: 71 West Capital Partners increased its stake, while Alps Advisors reduced its position. These filings reflect differing investor views and may have limited near-term significance. 71 West Capital Partners increases stake
• Negative Sentiment: Shares weakened as Anthropic introduced new Claude tools, renewing fears that AI products could intensify competition or erode demand for enterprise software. The concern is part of a broader slide in software stocks. ServiceNow stock drops amid Anthropic’s new AI tools
• Negative Sentiment: Reports describe a steep recent decline, with investors still reacting to the October quarterly results: revenue exceeded estimates and grew year over year, but EPS came in slightly below consensus. A Pomerantz law firm investigation into potential investor claims adds another source of uncertainty, although an investigation is not a finding of wrongdoing. Pomerantz investigation notice

ServiceNow Company Profile

ServiceNow, Inc. provides cloud-based software that helps organizations manage digital workflows and automate business processes. Founded in 2004 by Fred Luddy, the company began with a focus on IT service management and has expanded its platform to support a range of enterprise operations. Its products include tools for IT service and operations management, customer service, human resources, security, and application development. ServiceNow also offers artificial intelligence capabilities, including tools designed to help organizations automate tasks and find information across workflows.

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