ServiceNow (NYSE:NOW) Shares Down 1.7% on Insider Selling

Key Points

• ServiceNow shares fell 1.7% after the market reacted to recent insider selling, with trading volume jumping well above average.
• Several directors and insiders sold shares, including Paul Edward Chamberlain, Anita M. Sands, and Paul Fipps; some of the sales were made under pre-arranged 10b5-1 plans.
• Despite the pullback, analyst sentiment remains constructive overall, with a Moderate Buy consensus and a consensus price target of $141.89, while recent commentary has highlighted AI-related growth potential and a new Experian partnership.

ServiceNow, Inc. (NYSE:NOW - Get Free Report)'s stock price was down 1.7% on Tuesday after an insider sold shares in the company. The company traded as low as $100.77 and last traded at $101.7110. Approximately 55,249,646 shares changed hands during trading, an increase of 148% from the average daily volume of 22,310,305 shares. The stock had previously closed at $103.42.

Specifically, Director Paul Edward Chamberlain sold 1,500 shares of the stock in a transaction on Thursday, May 14th. The stock was sold at an average price of $87.23, for a total transaction of $130,845.00. Following the sale, the director owned 44,930 shares in the company, valued at approximately $3,919,243.90. This represents a 3.23% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Anita M. Sands sold 16,445 shares of the stock in a transaction on Thursday, May 14th. The stock was sold at an average price of $90.14, for a total value of $1,482,352.30. Following the sale, the director owned 30,090 shares in the company, valued at $2,712,312.60. The trade was a 35.34% decrease in their position. The disclosure for this sale is available in the SEC filing. In other news, insider Paul Fipps sold 1,048 shares of the stock in a transaction on Monday, May 18th. The stock was sold at an average price of $98.51, for a total transaction of $103,238.48. Following the sale, the insider owned 12,072 shares in the company, valued at approximately $1,189,212.72. This represents a 7.99% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards.

Analyst Upgrades and Downgrades

Several analysts have recently commented on NOW shares. Truist Financial decreased their target price on ServiceNow from $125.00 to $120.00 and set a "buy" rating on the stock in a report on Thursday, April 23rd. Morgan Stanley decreased their target price on ServiceNow from $210.00 to $180.00 and set an "overweight" rating on the stock in a report on Thursday, April 23rd. Evercore increased their target price on ServiceNow from $140.00 to $150.00 and gave the stock an "outperform" rating in a report on Tuesday, May 5th. Cantor Fitzgerald decreased their target price on ServiceNow to $122.00 and set an "overweight" rating on the stock in a report on Thursday, April 23rd. Finally, The Goldman Sachs Group cut their price target on ServiceNow from $188.00 to $163.00 and set a "buy" rating on the stock in a research note on Thursday, April 23rd. Two investment analysts have rated the stock with a Strong Buy rating, thirty-three have given a Buy rating, six have assigned a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and a consensus price target of $141.89.

ServiceNow News Roundup

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: Bank of America reinstated coverage on ServiceNow with a Buy rating and a $130 price target, calling it an AI beneficiary in the agentic AI era. BofA Reinstates Coverage of ServiceNow, Salesforce. It Says 1 Is an AI Beneficiary.
• Positive Sentiment: ServiceNow’s new partnership with Experian could strengthen its AI platform and improve enterprise workflow automation. ServiceNow (NOW) Partners With Experian to Power Autonomous AI Agents With Trusted Data
• Positive Sentiment: Wall Street commentary continues to favor ServiceNow as investors rotate back into software names that were hit by AI-disruption fears. ServiceNow Stock Has Been Battered By AI Disruption Worries. These Experts Think AI Will Actually Boost Its Business
• Neutral Sentiment: Broader software-sector strength is helping NOW, but some analysts caution the rebound may still be temporary rather than a full trend reversal. ServiceNow’s stock heads for best day in a year — flashing a green light for the software sector
• Negative Sentiment: Some articles still highlight lingering AI-disruption and valuation worries, noting ServiceNow has been under pressure despite the recent rebound. ServiceNow stock flashes a death cross amid rising SaaSpocalypse concerns

ServiceNow Stock Performance

The company has a quick ratio of 0.84, a current ratio of 0.84 and a debt-to-equity ratio of 0.13. The stock has a market cap of $104.86 billion, a P/E ratio of 60.61, a PEG ratio of 1.61 and a beta of 0.82. The stock has a fifty day simple moving average of $100.18 and a 200-day simple moving average of $128.05.

ServiceNow (NYSE:NOW - Get Free Report) last issued its earnings results on Wednesday, April 22nd. The information technology services provider reported $0.97 earnings per share (EPS) for the quarter, hitting analysts' consensus estimates of $0.97. ServiceNow had a return on equity of 18.16% and a net margin of 12.59%.The firm had revenue of $3.77 billion for the quarter, compared to analysts' expectations of $3.75 billion. During the same quarter last year, the business earned $0.81 earnings per share. The company's revenue was up 22.1% compared to the same quarter last year. Equities analysts expect that ServiceNow, Inc. will post 2.35 earnings per share for the current fiscal year.

Hedge Funds Weigh In On ServiceNow

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

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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