ServiceNow (NYSE:NOW) Shares Up 1.3% - Here's Why

Key Points

• ServiceNow shares rose 1.3% on Wednesday, with trading volume running about 33% above average as the stock briefly reached $103.35.
• Bank of America restarted coverage with a Buy rating and a $130 price target, saying ServiceNow could benefit from the shift toward “agentic AI” and serve as a control center for enterprise AI workflows.
• Investor sentiment toward the stock improved as analysts and market commentary suggested AI disruption fears may be overblown and could even increase demand for ServiceNow’s workflow automation products, despite some lingering concerns and recent insider selling.

ServiceNow, Inc. (NYSE:NOW - Get Free Report) shot up 1.3% during trading on Wednesday . The stock traded as high as $103.35 and last traded at $103.1320. 29,731,258 shares were traded during mid-day trading, an increase of 33% from the average session volume of 22,390,395 shares. The stock had previously closed at $101.83.

Key Stories Impacting ServiceNow

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: Bank of America restarted coverage on ServiceNow with a Buy rating and a $130 price target, arguing the stock is a beneficiary of the “agentic AI” shift and could serve as a control center for enterprise AI workflows. BofA Reinstates Coverage of ServiceNow, Salesforce. It Says 1 Is an AI Beneficiary.
• Positive Sentiment: Multiple reports said investors are rotating back into enterprise software, with analysts increasingly arguing that AI disruption fears around ServiceNow were overblown and that AI could actually expand demand for its workflow automation products. Wall Street Is Warming Up to ServiceNow Stock. That’s Because It’s Now a Bet on Agentic AI.
• Positive Sentiment: Coverage from TCW and other market commentary reinforced a constructive tone, suggesting institutional investors still see long-term growth potential in ServiceNow despite volatility in software names. TCW Concentrated Large Cap Growth Fund Maintains a Constructive View on ServiceNow (NOW)
• Neutral Sentiment: Broader software-sector strength helped lift sentiment across the group, including ServiceNow, as investors reassessed the risk of AI replacing enterprise software vendors. ServiceNow and Snowflake Stocks Trade Up, What You Need To Know
• Negative Sentiment: Some investors still worry about AI disruption and “SaaSpocalypse” narratives, and there was also recent insider selling disclosed, which can temper enthusiasm even if the sales were planned or tax-related. Insider Selling: ServiceNow NYSE: NOW Insider Sells 1,048 Shares of Stock

Analyst Ratings Changes

Several brokerages recently commented on NOW. Piper Sandler cut their price target on shares of ServiceNow from $200.00 to $140.00 and set an "overweight" rating for the company in a report on Thursday, April 23rd. Oppenheimer set a $130.00 target price on shares of ServiceNow and gave the stock an "outperform" rating in a research note on Wednesday, April 15th. Bank of America began coverage on ServiceNow in a research report on Monday. They issued a "buy" rating and a $130.00 price target for the company. Robert W. Baird dropped their price target on ServiceNow from $125.00 to $118.00 and set an "outperform" rating for the company in a research report on Thursday, April 23rd. Finally, Cantor Fitzgerald lowered their price target on shares of ServiceNow to $122.00 and set an "overweight" rating on the stock in a research report on Thursday, April 23rd. Two analysts have rated the stock with a Strong Buy rating, thirty-three have issued a Buy rating, six have assigned a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat, ServiceNow has an average rating of "Moderate Buy" and an average target price of $141.89.

ServiceNow Price Performance

The stock's 50-day simple moving average is $99.72 and its 200 day simple moving average is $127.48. 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 company has a market cap of $106.33 billion, a price-to-earnings ratio of 61.46, a PEG ratio of 1.76 and a beta of 0.82.

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

Insider Buying and Selling at ServiceNow

In other news, insider Paul Fipps sold 1,048 shares of the stock in a transaction dated Monday, May 18th. The shares were 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 of the company's stock, 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 can be accessed through the SEC website. 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. Also, insider Jacqueline P. Canney sold 8,927 shares of the stock in a transaction dated Friday, April 24th. The stock was sold at an average price of $89.60, for a total transaction of $799,859.20. Following the sale, the insider directly owned 29,531 shares in the company, valued at $2,645,977.60. This represents a 23.21% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold a total of 31,767 shares of company stock worth $2,906,098 over the last ninety days. Company insiders own 0.34% of the company's stock.

Institutional Trading of ServiceNow

Several hedge funds have recently added to or reduced their stakes in NOW. Brighton Jones LLC raised its holdings in ServiceNow by 1.1% in the fourth quarter. Brighton Jones LLC now owns 2,753 shares of the information technology services provider's stock valued at $2,919,000 after acquiring an additional 30 shares in the last quarter. Sivia Capital Partners LLC raised its holdings in ServiceNow by 4.2% during the second quarter. Sivia Capital Partners LLC now owns 837 shares of the information technology services provider's stock worth $861,000 after purchasing an additional 34 shares in the last quarter. United Bank raised its holdings in ServiceNow by 15.5% during the second quarter. United Bank now owns 1,519 shares of the information technology services provider's stock worth $1,562,000 after purchasing an additional 204 shares in the last quarter. Riggs Asset Managment Co. Inc. raised its holdings in ServiceNow by 2.2% during the second quarter. Riggs Asset Managment Co. Inc. now owns 1,922 shares of the information technology services provider's stock worth $1,976,000 after purchasing an additional 42 shares in the last quarter. Finally, Nebula Research & Development LLC raised its holdings in ServiceNow by 205.1% during the second quarter. Nebula Research & Development LLC now owns 906 shares of the information technology services provider's stock worth $931,000 after purchasing an additional 609 shares in the last quarter. Institutional investors and hedge funds own 87.18% of the company's stock.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.