ServiceNow (NYSE:NOW) Shares Up 14.6% - Time to Buy?

Key Points

• ServiceNow shares jumped 14.6% in heavy trading, with volume far above average, as the stock moved sharply higher after recent weakness. The move lifted shares to around $124.56, near the day’s high.
• The rally was driven by renewed optimism around AI and software stocks, including the idea that ServiceNow is well positioned for agentic AI and enterprise automation. Positive headlines and a stronger sector backdrop, helped by Snowflake’s results, added to the bullish tone.
• Despite the surge, analysts remain generally constructive: the stock has a Moderate Buy consensus rating and an average target price of $141.85. Recent reports from multiple brokerages included buy or outperform ratings, even as some price targets were trimmed.

ServiceNow, Inc. (NYSE:NOW - Get Free Report)'s stock price shot up 14.6% during mid-day trading on Friday . The company traded as high as $124.74 and last traded at $124.5610. 66,447,380 shares changed hands during trading, an increase of 188% from the average session volume of 23,107,756 shares. The stock had previously closed at $108.73.

ServiceNow News Summary

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: ServiceNow is benefiting from a sector-wide rebound in software stocks after Snowflake’s strong earnings suggested AI is more of an opportunity than a threat for enterprise platforms. ServiceNow (NOW) Stock Trades Up, Here Is Why
• Positive Sentiment: Investors are also responding to ServiceNow’s expanding AI narrative, including its position as a key platform for agentic AI workflows and enterprise automation. ServiceNow's stock soars toward historic month as AI fears fade across software
• Positive Sentiment: Coverage calling ServiceNow a buy at current levels and setting a higher price target is adding to the bullish sentiment around the stock’s valuation reset. Buy, Hold, or Sell: Is This Cloud Automation Juggernaut a Steal Following Its Massive Valuation Reset?
• Positive Sentiment: Momentum from partnerships and AI-related headlines, including Wipro’s expanded ServiceNow collaboration, is reinforcing the company’s relevance in enterprise automation. Wipro stock gains 4%: can its ServiceNow tie-up drive growth?
• Neutral Sentiment: Unusually high options activity suggests traders are positioning for continued volatility in ServiceNow shares. ServiceNow Sees Unusually High Options Volume NYSE: NOW

Analyst Ratings Changes

A number of brokerages have issued reports on NOW. Benchmark began coverage on ServiceNow in a research note on Wednesday, April 1st. They set a "buy" rating and a $125.00 price objective for the company. UBS Group reissued an "outperform" rating on shares of ServiceNow in a report on Tuesday. Argus reduced their target price on ServiceNow from $180.00 to $134.00 and set a "buy" rating for the company in a report on Friday, April 24th. Cantor Fitzgerald reduced their target price on ServiceNow to $122.00 and set an "overweight" rating for the company in a report on Thursday, April 23rd. Finally, Needham & Company LLC reissued a "buy" rating and issued a $115.00 target price on shares of ServiceNow in a report on Tuesday, May 5th. Two analysts have rated the stock with a Strong Buy rating, thirty-five have assigned a Buy rating, five have assigned a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and an average target price of $141.85.

ServiceNow Stock Up 14.6%

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 $128.42 billion, a P/E ratio of 74.23, a price-to-earnings-growth ratio of 1.69 and a beta of 0.82. The company has a fifty day moving average of $97.84 and a 200 day moving average of $123.73.

ServiceNow (NYSE:NOW - Get Free Report) last issued its quarterly earnings data on Wednesday, April 22nd. The information technology services provider reported $0.97 EPS for the quarter, hitting the consensus estimate 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 during the quarter, compared to analyst estimates of $3.75 billion. During the same quarter in the previous year, the company posted $0.81 earnings per share. ServiceNow's revenue was up 22.1% compared to the same quarter last year. On average, research analysts anticipate that ServiceNow, Inc. will post 2.35 earnings per share for the current fiscal year.

Insider Transactions at ServiceNow

In related news, insider Jacqueline P. Canney sold 8,927 shares of ServiceNow stock in a transaction on Friday, April 24th. The stock was sold at an average price of $89.60, for a total value of $799,859.20. Following the completion of the sale, the insider owned 29,531 shares of the company's stock, valued at $2,645,977.60. The trade was a 23.21% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, Director Paul Edward Chamberlain sold 1,500 shares of ServiceNow stock in a transaction on Thursday, May 14th. The stock was sold at an average price of $87.23, for a total value of $130,845.00. Following the completion of the sale, the director directly owned 44,930 shares of the company's stock, valued at $3,919,243.90. The trade was a 3.23% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders sold 28,071 shares of company stock worth $2,529,956. 0.34% of the stock is currently owned by insiders.

Hedge Funds Weigh In On ServiceNow

Institutional investors and hedge funds have recently bought and sold shares of the stock. Meridian Wealth Advisors LLC boosted its stake in ServiceNow by 2.2% in the third quarter. Meridian Wealth Advisors LLC now owns 552 shares of the information technology services provider's stock worth $508,000 after buying an additional 12 shares in the last quarter. Valley Brook Capital Group Inc. boosted its stake in ServiceNow by 2.1% in the third quarter. Valley Brook Capital Group Inc. now owns 634 shares of the information technology services provider's stock worth $583,000 after buying an additional 13 shares in the last quarter. Catalyst Financial Partners LLC boosted its stake in ServiceNow by 1.0% in the third quarter. Catalyst Financial Partners LLC now owns 1,270 shares of the information technology services provider's stock worth $1,169,000 after buying an additional 13 shares in the last quarter. JT Stratford LLC boosted its stake in ServiceNow by 3.5% in the third quarter. JT Stratford LLC now owns 385 shares of the information technology services provider's stock worth $354,000 after buying an additional 13 shares in the last quarter. Finally, Florida Financial Advisors LLC boosted its stake in ServiceNow by 5.4% in the second quarter. Florida Financial Advisors LLC now owns 273 shares of the information technology services provider's stock worth $280,000 after buying an additional 14 shares in the last quarter. 87.18% of the stock is currently owned by hedge funds and other institutional investors.

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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