ServiceNow (NYSE:NOW) Stock Jumps 1.5% - Should You Buy?

ServiceNow, Inc. (NYSE:NOW - Get Free Report) shares traded up 1.5% during mid-day trading on Friday. The stock traded as high as $102.86 and last traded at $102.1360. Approximately 8,425,060 shares were traded during trading, a decline of 61% from the average session volume of 21,431,934 shares. The stock had previously closed at $100.66.

More ServiceNow News

Here's some of the latest news about NOW:

• Positive Sentiment: Argus reportedly maintains a Buy rating, seeing potential in ServiceNow even after its shares fell substantially from their high. The stock also ranked ninth in a list of AI stocks highlighted after Wells Fargo improved its outlook on the AI infrastructure trade. Article: Argus still rates ServiceNow a Buy
• Negative Sentiment: Investors are weighing whether ServiceNow’s valuation is justified by its earnings power. One report notes that the shares have been caught in a wider AI-software selloff and are down 40.5% over the past 12 months, tempering enthusiasm about its agentic AI opportunity. Article: ServiceNow stock could be pricey
• Negative Sentiment: Pomerantz LLP announced an investigation into potential claims on behalf of ServiceNow investors. The announcement may add uncertainty, but an investigation is not a finding of wrongdoing. Article: Pomerantz investor investigation announcement

Analyst Upgrades and Downgrades

A number of brokerages recently commented on NOW. BMO Capital Markets raised their price target on ServiceNow from $115.00 to $118.00 and gave the stock an "outperform" rating in a research note on Thursday, July 23rd. Evercore reissued an "outperform" rating on shares of ServiceNow in a research report on Tuesday, October 13th. Guggenheim restated a "buy" rating and issued a $175.00 price objective (up from $125.00) on shares of ServiceNow in a report on Friday, October 23rd. Needham & Company LLC raised their target price 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, Argus reaffirmed a "buy" rating and set a $170.00 target price on shares of ServiceNow in a research note on Tuesday, November 3rd. One equities research analyst has rated the stock with a Strong Buy rating, thirty-six have given a Buy rating, three have assigned a Hold rating and three have assigned a Sell rating to the company. Based on data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and a consensus target price of $154.50.

ServiceNow Price Performance

The company has a debt-to-equity ratio of 0.42, a current ratio of 0.72 and a quick ratio of 0.72. The firm's 50 day moving average is $132.97 and its 200 day moving average is $114.22. The firm has a market cap of $106.02 billion, a P/E ratio of 73.48, a price-to-earnings-growth ratio of 2.01 and a beta of 1.00.

ServiceNow (NYSE:NOW - Get Free Report) last announced its quarterly earnings data on Wednesday, October 28th. The information technology services provider reported $1.00 earnings per share for the quarter, missing analysts' consensus estimates 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 analysts' expectations of $4.09 billion. During the same quarter last year, the company posted $4.82 EPS. ServiceNow's revenue for the quarter was up 20.5% compared to the same quarter last year. As a group, analysts anticipate that ServiceNow, Inc. will post 2.12 earnings per share for the current year.

Insider Buying and Selling

In other ServiceNow news, Director Paul Chamberlain sold 2,700 shares of ServiceNow stock in a transaction on Thursday, August 27th. The stock was sold at an average price of $135.50, for a total transaction of $365,850.00. Following the completion of the transaction, the director owned 43,990 shares in the company, valued at approximately $5,960,645. The trade was a 5.78% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, insider Paul Fipps sold 2,034 shares of the business's stock in a transaction on Monday, August 31st. The stock was sold at an average price of $147.87, for a total value of $300,767.58. Following the completion of the sale, the insider directly owned 18,305 shares in the company, valued at $2,706,760.35. This trade represents a 10.00% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 13,870 shares of company stock worth $1,880,595 in the last 90 days. Insiders own 0.34% of the company's stock.

Hedge Funds Weigh In On ServiceNow

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

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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