ServiceNow (NYSE:NOW) Stock Price Up 1.7% After Analyst Upgrade

Key Points

• ServiceNow shares rose 1.7% after Cantor Fitzgerald raised its price target from $141 to $174 and maintained an “overweight” rating, implying substantial upside. Analysts overall rate the stock “Moderate Buy,” with a consensus target of $146.51.
• ServiceNow reported quarterly EPS of $0.90 versus the $0.86 consensus estimate, while revenue reached $3.99 billion, up 24% year over year and above expectations.
• Despite strong workflow-software and AI demand, investors face risks from ServiceNow’s elevated valuation, competition with Salesforce and Microsoft, and uncertainty about the durability of AI-driven growth. Insiders have sold approximately $1.94 million of shares over the past three months.

ServiceNow, Inc. (NYSE:NOW - Get Free Report)'s stock price traded up 1.7% during trading on Monday after Cantor Fitzgerald raised their price target on the stock from $141.00 to $174.00. Cantor Fitzgerald currently has an overweight rating on the stock. ServiceNow traded as high as $140.16 and last traded at $137.75. 10,699,523 shares were traded during trading, a decline of 53% from the average session volume of 22,726,480 shares. The stock had previously closed at $135.47.

Other equities analysts have also recently issued reports about the stock. Benchmark restated a "buy" rating on shares of ServiceNow in a research report on Friday, July 17th. BMO Capital Markets lifted their price target on shares of ServiceNow from $115.00 to $118.00 and gave the stock an "outperform" rating in a report on Thursday, July 23rd. Piper Sandler reissued an "overweight" rating and issued a $140.00 price objective on shares of ServiceNow in a research note on Thursday, July 23rd. The Goldman Sachs Group restated a "buy" rating on shares of ServiceNow in a report on Monday, August 3rd. Finally, Oppenheimer reaffirmed an "outperform" rating and set a $140.00 target price (up from $130.00) on shares of ServiceNow in a research report on Wednesday, July 15th. One investment analyst has rated the stock with a Strong Buy rating, thirty-six have assigned a Buy rating, three have given a Hold rating and two have given a Sell rating to the stock. According to data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and a consensus target price of $146.51.

Insiders Place Their Bets

In related news, insider Paul Fipps sold 2,034 shares of the business's stock in a transaction on Monday, August 31st. The shares were sold at an average price of $147.87, for a total transaction of $300,767.58. Following the transaction, the insider owned 18,305 shares in the company, valued at $2,706,760.35. The trade was a 10.00% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, insider Jacqueline P. Canney sold 7,847 shares of the stock in a transaction on Friday, August 28th. The stock was sold at an average price of $138.00, for a total transaction of $1,082,886.00. Following the transaction, the insider directly owned 30,042 shares in the company, valued at approximately $4,145,796. This represents a 20.71% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders have sold 14,081 shares of company stock worth $1,937,904. Corporate insiders own 0.34% of the company's stock.

Key Headlines Impacting ServiceNow

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: Cantor Fitzgerald raised its ServiceNow price target from $141 to $174 and reiterated an “overweight” rating. The new target implies approximately 26.5% upside from the referenced share price, providing a significant bullish catalyst. Cantor Fitzgerald Boosts ServiceNow Price Target to $174
• Positive Sentiment: ServiceNow is benefiting from broad demand for workflow software, cross-selling opportunities and partnerships supporting artificial-intelligence adoption. These factors could help the company sustain growth while competing with Salesforce and Microsoft. NOW Rides on Strong Workflow Demand
• Neutral Sentiment: A market discussion characterized NOW as a “tricky” stock because analyst views vary widely. The debate centers on whether ServiceNow can become a major disruptor in AI software or be disrupted by rapidly changing AI technologies. Bull v. Bear: NOW Seeks to Become Disruptor Amid AI Software Disruption
• Neutral Sentiment: A comparison with TD SYNNEX examines which information-technology services stock offers better value. The analysis reinforces that valuation is an important consideration for NOW investors, particularly given ServiceNow’s premium earnings multiple. SNX vs. NOW: Which Stock Is the Better Value Option?
• Negative Sentiment: Competition from Salesforce and Microsoft, along with uncertainty over the durability of AI-related software demand, could limit future upside or pressure the stock’s high valuation.

Institutional Investors Weigh In On ServiceNow

A number of hedge funds have recently added to or reduced their stakes in the company. National Pension Service raised its position in shares of ServiceNow by 5.8% during the second quarter. National Pension Service now owns 2,705,240 shares of the information technology services provider's stock worth $268,576,000 after purchasing an additional 147,467 shares during the period. WINTON GROUP Ltd raised its holdings in shares of ServiceNow by 45.9% in the second quarter. WINTON GROUP Ltd now owns 132,411 shares of the information technology services provider's stock valued at $13,146,000 after purchasing an additional 41,653 shares during the last quarter. Engineers Gate Manager LP increased its stake in ServiceNow by 6.7% in the 2nd quarter. Engineers Gate Manager LP now owns 370,643 shares of the information technology services provider's stock valued at $36,797,000 after buying an additional 23,409 shares during the last quarter. Capital Analysts LLC increased its position in shares of ServiceNow by 12,952.5% during the second quarter. Capital Analysts LLC now owns 5,221 shares of the information technology services provider's stock valued at $518,000 after acquiring an additional 5,181 shares during the last quarter. Finally, SVB Wealth LLC grew its stake in ServiceNow by 11.9% in the 2nd quarter. SVB Wealth LLC now owns 2,618 shares of the information technology services provider's stock valued at $260,000 after purchasing an additional 278 shares during the period. Institutional investors and hedge funds own 87.18% of the company's stock.

ServiceNow Trading Up 1.7%

The stock has a market capitalization of $142.43 billion, a PE ratio of 86.09, a price-to-earnings-growth ratio of 2.49 and a beta of 0.97. The firm has a 50-day moving average price of $123.37 and a 200-day moving average price of $110.13. The company has a current ratio of 0.70, a quick ratio of 0.70 and a debt-to-equity ratio of 0.43.

ServiceNow (NYSE:NOW - Get Free Report) last issued its quarterly earnings results on Wednesday, July 22nd. The information technology services provider reported $0.90 earnings per share for the quarter, topping analysts' consensus estimates of $0.86 by $0.04. The company had revenue of $3.99 billion for the quarter, compared to the consensus estimate of $3.93 billion. ServiceNow had a net margin of 11.34% and a return on equity of 16.45%. The firm'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. As a group, equities analysts forecast that ServiceNow, Inc. will post 2.22 EPS for the current fiscal year.

ServiceNow Company Profile

ServiceNow, Inc is a cloud-based enterprise software company that provides digital workflow and automation solutions. Its Now Platform enables organizations to manage and connect business processes across information technology, customer service, human resources, finance, legal operations and other departments.

The company's products and services include IT service management, IT operations management, customer service management, human resources service delivery, security operations, risk and compliance management, strategic portfolio management and application development tools.

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