ServiceNow, Inc. (NYSE:NOW) Stock Rated "Moderate Buy" by Sell-Side Brokerages

Key Points

• ServiceNow has a “Moderate Buy” consensus rating from 42 analysts, with 35 buy ratings, one strong buy, four holds and two sells. The average 12-month price target is $151.73, while several firms recently raised their targets, including Piper Sandler to $175.
• The company reported quarterly revenue of $3.99 billion, up 24% year over year, and earnings of $0.90 per share, exceeding analyst expectations. New AI offerings, including no-code EmployeeWorks agent creation and Nvidia-backed AI Passport governance tools, are supporting the growth outlook.
• Institutional ownership is substantial at 87.18%, led by a large new BlackRock position, although insiders have sold $1.94 million worth of shares over the past three months. Shares remain exposed to volatility as concerns about AI financing and elevated valuation weigh on enterprise software stocks.

Shares of ServiceNow, Inc. (NYSE:NOW - Get Free Report) have earned a consensus rating of "Moderate Buy" from the forty-two research firms that are currently covering the company, Marketbeat reports. Two equities research analysts have rated the stock with a sell recommendation, four have assigned a hold recommendation, thirty-five have assigned a buy recommendation and one has assigned a strong buy recommendation to the company. The average 1-year target price among analysts that have issued ratings on the stock in the last year is $151.73.

Several equities research analysts recently issued reports on NOW shares. Bank of America increased their target price on shares of ServiceNow from $130.00 to $150.00 and gave the stock a "buy" rating in a report on Wednesday, August 19th. Oppenheimer reaffirmed an "outperform" rating and set a $165.00 price target (up from $140.00) on shares of ServiceNow in a report on Tuesday. The Goldman Sachs Group reaffirmed a "buy" rating on shares of ServiceNow in a report on Monday, August 3rd. Needham & Company LLC upped their price target on shares of ServiceNow from $115.00 to $155.00 and gave the stock a "buy" rating in a research report on Friday, September 11th. Finally, Truist Financial increased their price objective on shares of ServiceNow from $120.00 to $130.00 and gave the stock a "buy" rating in a research note on Thursday, July 9th.

Insider Activity

In related news, Director Paul Chamberlain sold 2,700 shares of the company's stock in a transaction on Thursday, August 27th. The shares were sold at an average price of $135.50, for a total value of $365,850.00. Following the completion of the transaction, the director owned 43,990 shares of the company's stock, valued at approximately $5,960,645. This represents a 5.78% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through this link. Also, insider Paul Fipps sold 2,034 shares of the company's stock in a transaction on Monday, August 31st. The stock was sold at an average price of $147.87, for a total transaction of $300,767.58. Following the completion of the transaction, the insider directly owned 18,305 shares of the company's stock, valued at $2,706,760.35. This represents a 10.00% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 14,081 shares of company stock worth $1,937,904 in the last three months. Company insiders own 0.34% of the company's stock.

Institutional Investors Weigh In On ServiceNow

A number of institutional investors and hedge funds have recently bought and sold shares of NOW. BlackRock Inc. purchased a new stake in shares of ServiceNow during the second quarter worth about $9,536,615,000. Bank of New York Mellon Corp purchased a new position in ServiceNow in the 2nd quarter worth approximately $712,573,000. Legal & General Group Plc purchased a new position in ServiceNow in the 2nd quarter worth approximately $641,888,000. Bank of America Corp DE purchased a new position in ServiceNow in the 2nd quarter worth approximately $627,355,000. Finally, Deutsche Bank AG purchased a new position in ServiceNow in the 2nd quarter worth approximately $595,157,000. 87.18% of the stock is owned by institutional investors.

More ServiceNow News

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: Piper Sandler raised its price target to $175 from $140 and maintained an “overweight” rating, implying meaningful upside and reflecting confidence in ServiceNow’s growth outlook. ServiceNow Stock Trending: Employees Build AI Agents with Nvidia Oversight
• Positive Sentiment: ServiceNow introduced new EmployeeWorks capabilities that allow employees to build AI agents without coding, along with an Nvidia-backed AI Passport designed to manage permissions, business context and emergency controls for AI agents. These products could strengthen adoption of ServiceNow’s workflow and governance platform. ServiceNow introduces the third generation of its employee-centric AI harness
• Positive Sentiment: Recent coverage highlights ServiceNow’s deep integration into enterprise systems, strong customer retention and consistent revenue growth. Analysts also expect potential support from customer upgrades, security-product demand and U.S. federal spending. ServiceNow stock rises as investors rotate to enterprise software stocks
• Neutral Sentiment: ServiceNow’s shares benefited previously from a denial of reports that it was interested in acquiring AI startup Decagon, reducing concerns about a potentially expensive acquisition. That benefit has faded as broader market sentiment has deteriorated. ServiceNow Climbs After Denying Decagon Acquisition Interest
• Negative Sentiment: Enterprise software stocks are falling as AI-financing concerns spread. Investors appear to be taking profits and reducing exposure to expensive AI beneficiaries, with ServiceNow declining alongside Palantir and Salesforce despite its improving AI product portfolio. Enterprise Software Stocks Fall as AI Financing Worries Spread

ServiceNow Stock Performance

Shares of NOW opened at $141.74 on Friday. The business has a 50-day simple moving average of $135.20 and a two-hundred day simple moving average of $113.67. The company has a quick ratio of 0.70, a current ratio of 0.70 and a debt-to-equity ratio of 0.43. ServiceNow has a 52 week low of $81.24 and a 52 week high of $192.97. The stock has a market cap of $146.56 billion, a price-to-earnings ratio of 88.58, a PEG ratio of 2.73 and a beta of 0.99.

ServiceNow (NYSE:NOW - Get Free Report) last posted its quarterly earnings data on Wednesday, July 22nd. The information technology services provider reported $0.90 earnings per share for the quarter, beating analysts' consensus estimates of $0.86 by $0.04. The firm had revenue of $3.99 billion for the quarter, compared to analysts' expectations of $3.93 billion. ServiceNow had a return on equity of 16.45% and a net margin of 11.34%. The business's quarterly revenue was up 24.0% on a year-over-year basis. During the same period in the previous year, the firm earned $0.81 EPS. On average, analysts expect that ServiceNow will post 2.22 EPS for the current year.

ServiceNow Company Profile

ServiceNow, Inc is a cloud-based enterprise software company that helps organizations digitize, automate and manage workflows. Its platform connects people, processes and systems across departments, enabling businesses to replace manual, disconnected activities with standardized digital workflows.

The company's products and services support a range of functions, including information technology service management, IT operations management, customer service, human resources, risk and security operations, and software development.

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