Robert W. Baird Issues Pessimistic Forecast for ServiceNow (NYSE:NOW) Stock Price

Key Points

• Robert W. Baird cut its ServiceNow price target from $175 to $125 while keeping an "outperform" rating, a target that the report says implies about a 32.8% upside from the current share price.
• Multiple firms have trimmed targets (e.g., Stifel to $135, Jefferies to $175) and the Street average target is about $178.54, but the stock has plunged roughly 43% YTD and trades near $94 with a high P/E, highlighting valuation and downside concerns despite a "Moderate Buy" consensus.
• Insiders have been net sellers recently (16,237 shares sold in the last 90 days), even as major institutions dramatically increased positions (Vanguard, State Street, Price T. Rowe and others boosted stakes), with institutions now owning about 87.18% of the stock.

ServiceNow (NYSE:NOW - Get Free Report) had its target price lowered by analysts at Robert W. Baird from $175.00 to $125.00 in a report issued on Thursday,Benzinga reports. The brokerage currently has an "outperform" rating on the information technology services provider's stock. Robert W. Baird's price target points to a potential upside of 32.83% from the company's current price.

Other equities analysts have also issued reports about the company. Stifel Nicolaus lowered their target price on ServiceNow from $180.00 to $135.00 and set a "buy" rating on the stock in a research report on Thursday, April 2nd. Jefferies Financial Group lowered their target price on ServiceNow from $230.00 to $175.00 and set a "buy" rating on the stock in a research report on Friday, January 23rd. Wall Street Zen downgraded shares of ServiceNow from a "buy" rating to a "hold" rating in a research report on Saturday, February 28th. Needham & Company LLC reissued a "buy" rating and set a $155.00 target price on shares of ServiceNow in a research report on Thursday, February 5th. Finally, BTIG Research decreased their target price on shares of ServiceNow from $200.00 to $185.00 and set a "buy" rating for the company in a research report on Tuesday, April 7th. Three analysts have rated the stock with a Strong Buy rating, thirty-three have assigned a Buy rating, six have given a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, the company has an average rating of "Moderate Buy" and an average target price of $178.54.

ServiceNow Stock Performance

Shares of NOW stock opened at $94.11 on Thursday. The company has a market cap of $97.51 billion, a price-to-earnings ratio of 56.42, a price-to-earnings-growth ratio of 1.47 and a beta of 1.01. The firm has a 50 day moving average of $105.93 and a 200-day moving average of $141.78. The company has a quick ratio of 1.00, a current ratio of 1.00 and a debt-to-equity ratio of 0.12. ServiceNow has a 52 week low of $81.24 and a 52 week high of $211.48.

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

Insider Activity

In other news, insider Paul Fipps sold 3,696 shares of the firm's stock in a transaction on Monday, February 23rd. The stock was sold at an average price of $101.77, for a total transaction of $376,141.92. Following the completion of the sale, the insider directly owned 8,061 shares of the company's stock, valued at $820,367.97. This trade represents a 31.44% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. Also, Director Paul Edward Chamberlain sold 1,500 shares of the firm's stock in a transaction on Thursday, February 12th. The shares were sold at an average price of $101.17, for a total value of $151,755.00. Following the sale, the director directly owned 46,430 shares of the company's stock, valued at approximately $4,697,323.10. This represents a 3.13% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 16,237 shares of company stock valued at $1,697,162 in the last ninety days. 0.34% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Vanguard Group Inc. grew its stake in ServiceNow by 404.5% in the 4th quarter. Vanguard Group Inc. now owns 101,963,384 shares of the information technology services provider's stock valued at $15,619,771,000 after buying an additional 81,752,460 shares in the last quarter. State Street Corp grew its stake in ServiceNow by 406.6% in 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 buying an additional 38,441,898 shares in the last quarter. Price T Rowe Associates Inc. MD boosted its stake in 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 worth $4,962,692,000 after purchasing an additional 25,517,218 shares during the period. Geode Capital Management LLC boosted its stake in 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 period. Finally, Morgan Stanley boosted its stake in ServiceNow by 335.6% in the 4th 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 currently owned by hedge funds and other institutional investors.

Key Stories Impacting ServiceNow

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: Risk‑on market sentiment tied to easing geopolitical tensions lifted growth and software names, helping ServiceNow recover as investors rotate back into high‑margin, AI‑exposed enterprises. Why Is ServiceNow (NOW) Stock Rocketing Higher Today
• Positive Sentiment: High‑profile endorsement: Jim Cramer flagged ServiceNow as able to move higher, noting an expanded buyback and an insider (CEO) share purchase — signals that can boost investor confidence and short‑term buying. Jim Cramer on ServiceNow
• Positive Sentiment: Near‑term AI demand and international expansion could underpin revenue growth: analysts and reporters point to early signs of AI‑driven demand ahead of Q1 results and new data centers/expansion in Brazil positioning ServiceNow as an AI workflow hub in Latin America. ServiceNow Seen Delivering Modest Q1 Beat ServiceNow Expands AI Workflow Hub In Brazil
• Neutral Sentiment: Partner and ecosystem updates (TrustCloud integration, top partner recognitions, and favorable analyst ranking ahead of earnings) reinforce product momentum but are incremental vs. macro/analyst drivers. TrustCloud Integration Cadena Co. Named #1 Partner Mizuho Ranking
• Negative Sentiment: Analyst price‑target cuts and downgrades are weighing on sentiment: BMO trimmed its target to $120 and maintained an outperform rating, while Citi and other firms have also trimmed targets — adding downward pressure despite positive commentary. BMO Cuts Target to $120 Citi Cuts Target
• Negative Sentiment: Analyst downgrades have produced near‑term pullbacks — an article noted a recent 1.4% drop tied to analyst action — signaling that investor attention is focused on revisions to estimates and targets ahead of earnings. Stock Down 1.4% on Analyst Downgrade
• Negative Sentiment: Broader caution from outlets noting a steep YTD decline (reported ~43% YTD) and lowered targets from firms like Oppenheimer highlight longer‑term valuation concerns and increase sensitivity to any earnings miss. YTD Plunge and Oppenheimer Cut RBC Pessimistic Forecast

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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