ServiceNow, Inc. (NYSE:NOW) Given Consensus Recommendation of "Moderate Buy" by Analysts

Key Points

• ServiceNow has a consensus analyst rating of “Moderate Buy” from 42 brokerages, with an average 1-year price target of about $141.89. Most analysts are bullish, including 33 buy ratings and 2 strong buy ratings.
• Recent commentary has centered on AI: Bank of America reinstated coverage with a Buy rating and a $130 target, arguing ServiceNow is well positioned for the agentic AI era. Other reports suggest AI disruption fears may be overstated and could actually support the company’s workflow business.
• ServiceNow’s latest quarter met earnings expectations, with EPS of $0.97 and revenue of $3.77 billion, up 22.1% year over year. Despite that, shares have been volatile, trading around $101.71 and well below the 52-week high of $211.48.

ServiceNow, Inc. (NYSE:NOW - Get Free Report) has been given an average rating of "Moderate Buy" by the forty-two brokerages that are currently covering the firm, Marketbeat.com reports. One analyst has rated the stock with a sell recommendation, six have assigned a hold recommendation, thirty-three have issued a buy recommendation and two have issued a strong buy recommendation on the company. The average 1-year price target among brokerages that have issued a report on the stock in the last year is $141.8923.

Several equities research analysts have recently commented on the company. Citizens Jmp restated a "market outperform" rating and set a $157.00 price objective on shares of ServiceNow in a report on Tuesday, May 5th. Needham & Company LLC reissued a "buy" rating and issued a $115.00 price objective on shares of ServiceNow in a research note on Tuesday, May 5th. Oppenheimer set a $130.00 price objective on ServiceNow and gave the stock an "outperform" rating in a research note on Wednesday, April 15th. Cantor Fitzgerald lowered their price objective on ServiceNow to $122.00 and set an "overweight" rating for the company in a research note on Thursday, April 23rd. Finally, Royal Bank Of Canada reissued an "outperform" rating and issued a $121.00 price objective on shares of ServiceNow in a research note on Tuesday, May 5th.

Key Stories Impacting ServiceNow

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: Bank of America reinstated ServiceNow with a Buy rating and $130 price target, saying the company is well positioned for the agentic AI era. BofA Reinstates Coverage of ServiceNow, Salesforce. It Says 1 Is an AI Beneficiary.
• Positive Sentiment: Analysts and media reports said concerns about AI disrupting ServiceNow may be overblown and that AI could instead strengthen its enterprise workflow business. ServiceNow Stock Has Been Battered By AI Disruption Worries. These Experts Think AI Will Actually Boost Its Business
• Positive Sentiment: ServiceNow’s partnership with Experian and its new AI governance products support the view that the company is becoming more central to enterprise AI infrastructure. ServiceNow (NOW) Partners With Experian to Power Autonomous AI Agents With Trusted Data
• Neutral Sentiment: Broader software-sector strength is also helping NOW, as investors rotate back into beaten-down application software names. ServiceNow’s stock heads for best day in a year — flashing a green light for the software sector
• Negative Sentiment: Some reports still point to lingering valuation and “SaaSpocalypse” concerns, suggesting the rebound may not be fully settled yet. ServiceNow stock flashes a death cross amid rising SaaSpocalypse concerns

Insiders Place Their Bets

In other news, insider Paul Fipps sold 3,696 shares of the company's stock in a transaction that occurred on Monday, February 23rd. The stock was sold at an average price of $101.77, for a total value of $376,141.92. Following the completion of the transaction, the insider directly owned 8,061 shares of the company's stock, valued at $820,367.97. This represents a 31.44% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, insider Jacqueline P. Canney sold 8,927 shares of the stock in a transaction on Friday, April 24th. The shares were sold at an average price of $89.60, for a total value of $799,859.20. Following the transaction, the insider directly owned 29,531 shares of the company's stock, valued at approximately $2,645,977.60. This trade represents a 23.21% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last three months, insiders sold 31,767 shares of company stock valued at $2,906,098. Insiders own 0.34% of the company's stock.

Institutional Investors Weigh In On ServiceNow

Institutional investors have recently made changes to their positions in the stock. IAG Wealth Partners LLC raised its position in shares of ServiceNow by 200.0% in the third quarter. IAG Wealth Partners LLC now owns 27 shares of the information technology services provider's stock worth $25,000 after buying an additional 18 shares in the last quarter. Noble Wealth Management PBC raised its position in shares of ServiceNow by 400.0% in the fourth quarter. Noble Wealth Management PBC now owns 160 shares of the information technology services provider's stock worth $25,000 after buying an additional 128 shares in the last quarter. Millstone Evans Group LLC raised its position in shares of ServiceNow by 400.0% in the fourth quarter. Millstone Evans Group LLC now owns 165 shares of the information technology services provider's stock worth $25,000 after buying an additional 132 shares in the last quarter. CBIZ Investment Advisory Services LLC raised its position in shares of ServiceNow by 540.0% in the fourth quarter. CBIZ Investment Advisory Services LLC now owns 160 shares of the information technology services provider's stock worth $25,000 after buying an additional 135 shares in the last quarter. Finally, Blueline Advisors LLC purchased a new stake in shares of ServiceNow in the fourth quarter worth $25,000. Hedge funds and other institutional investors own 87.18% of the company's stock.

ServiceNow Stock Down 1.7%

Shares of NOW opened at $101.71 on Wednesday. The company has a market capitalization of $104.86 billion, a PE ratio of 60.61, a PEG ratio of 1.76 and a beta of 0.82. ServiceNow has a 12 month low of $81.24 and a 12 month high of $211.48. The stock's 50-day moving average price is $99.72 and its two-hundred day moving average price is $127.48. The company has a current ratio of 0.84, a quick ratio of 0.84 and a debt-to-equity ratio of 0.13.

ServiceNow (NYSE:NOW - Get Free Report) last announced its quarterly earnings data on Wednesday, April 22nd. The information technology services provider reported $0.97 earnings per share (EPS) for the quarter, meeting analysts' consensus estimates of $0.97. ServiceNow had a return on equity of 18.16% and a net margin of 12.59%.The company had revenue of $3.77 billion for the quarter, compared to the consensus estimate of $3.75 billion. During the same period in the previous year, the business earned $0.81 EPS. The firm's revenue was up 22.1% compared to the same quarter last year. On average, analysts anticipate that ServiceNow will post 2.35 EPS for the current year.

ServiceNow Company Profile

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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