ServiceNow (NYSE:NOW) Shares Up 6.3% - Still a Buy?

Key Points

• ServiceNow shares rose 6.3% on heavy trading volume, climbing as high as $110.16 after closing at $102.12 the prior day.
• Recent news flow is largely positive, including Wipro deepening its partnership with ServiceNow to automate enterprise workflows and expand agentic AI use cases, plus heavy call option buying that signals bullish trader sentiment.
• The company’s latest quarter showed solid execution: EPS matched expectations at $0.97 and revenue grew 22.1% year over year to $3.77 billion, while analysts overall still rate the stock a Moderate Buy with an average price target of $141.85.

ServiceNow, Inc. (NYSE:NOW - Get Free Report)'s stock price shot up 6.3% during trading on Thursday . The stock traded as high as $110.16 and last traded at $108.5810. 37,828,849 shares were traded during trading, an increase of 67% from the average session volume of 22,672,699 shares. The stock had previously closed at $102.12.

Key Headlines Impacting ServiceNow

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: Wipro said it is deepening its partnership with ServiceNow to automate enterprise workflows and expand agentic AI use cases across core business functions, reinforcing demand for ServiceNow’s platform. Wipro and ServiceNow deepen AI partnership to automate enterprise workflows
• Positive Sentiment: Unusually heavy call option buying in ServiceNow suggests traders are positioning for further upside, which can amplify momentum in the stock.
• Positive Sentiment: Recent commentary has highlighted ServiceNow’s solid Q1 results, with revenue growth of about 22% and earnings meeting expectations, supporting confidence in the company’s execution. ServiceNow (NOW) Stock Analysis: Evaluating the Investment Opportunity
• Neutral Sentiment: Analyst and media coverage continues to keep ServiceNow in focus, including discussions about how it can defend growth amid rising AI competition and attract larger enterprise AI budgets. Can ServiceNow Sustain Its Growth Amid Rising AI Competition?
• Neutral Sentiment: The stock is also benefiting from broader strength in software names, with recent market commentary noting software stocks rising while some chip makers lag. Oracle, Intel, and 8 Stocks That Explain the Market Today
• Negative Sentiment: Some recent articles raise the risk that intensifying AI competition could pressure ServiceNow’s long-term growth if it fails to keep differentiating its enterprise software stack.

Analysts Set New Price Targets

Several brokerages recently commented on NOW. KeyCorp set a $85.00 price objective on shares of ServiceNow and gave the company an "underweight" rating in a research note on Thursday, April 23rd. Barclays reissued an "overweight" rating and issued a $134.00 price target (up from $132.00) on shares of ServiceNow in a research note on Tuesday, May 5th. DA Davidson reissued a "buy" rating and issued a $190.00 price target on shares of ServiceNow in a research note on Tuesday, May 5th. Bank of America began coverage on shares of ServiceNow in a research note on Monday, May 18th. They issued a "buy" rating and a $130.00 price target for the company. Finally, TD Cowen reissued a "buy" rating and issued a $140.00 price target on shares of ServiceNow in a research note on Thursday, April 23rd. Two research analysts have rated the stock with a Strong Buy rating, thirty-five have given a Buy rating, five have issued a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat.com, the company has an average rating of "Moderate Buy" and an average price target of $141.85.

ServiceNow Stock Up 6.3%

The company has a market cap of $111.95 billion, a PE ratio of 64.71, a PEG ratio of 1.65 and a beta of 0.82. The stock's 50 day moving average price is $98.00 and its 200-day moving average price is $124.18. The company has a debt-to-equity ratio of 0.13, a quick ratio of 0.84 and a current ratio of 0.84.

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 net margin of 12.59% and a return on equity of 18.16%. The company had revenue of $3.77 billion during the quarter, compared to analysts' expectations of $3.75 billion. During the same quarter in the prior year, the company earned $0.81 EPS. The firm's revenue was up 22.1% on a year-over-year basis. On average, analysts predict that ServiceNow, Inc. will post 2.35 earnings per share for the current year.

Insider Buying and Selling at ServiceNow

In other news, insider Paul Fipps sold 1,048 shares of the company's stock in a transaction on Monday, May 18th. The shares were sold at an average price of $98.51, for a total value of $103,238.48. Following the completion of 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 position. 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. Also, Director Anita M. Sands sold 16,445 shares of the company's stock in a transaction on Thursday, May 14th. The shares were sold at an average price of $90.14, for a total transaction of $1,482,352.30. Following the completion of the sale, the director directly owned 30,090 shares of the company's stock, valued at $2,712,312.60. This trade represents a 35.34% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 28,071 shares of company stock worth $2,529,956 over the last 90 days. Company insiders own 0.34% of the company's stock.

Institutional Investors Weigh In On ServiceNow

A number of institutional investors have recently made changes to their positions in the business. IAG Wealth Partners LLC raised its holdings in ServiceNow by 200.0% during the 3rd quarter. IAG Wealth Partners LLC now owns 27 shares of the information technology services provider's stock valued at $25,000 after buying an additional 18 shares during the last quarter. Noble Wealth Management PBC raised its holdings in ServiceNow by 400.0% during the 4th quarter. Noble Wealth Management PBC now owns 160 shares of the information technology services provider's stock valued at $25,000 after buying an additional 128 shares during the last quarter. Millstone Evans Group LLC raised its holdings in ServiceNow by 400.0% during the 4th quarter. Millstone Evans Group LLC now owns 165 shares of the information technology services provider's stock valued at $25,000 after buying an additional 132 shares during the last quarter. CBIZ Investment Advisory Services LLC raised its holdings in ServiceNow by 540.0% during the 4th quarter. CBIZ Investment Advisory Services LLC now owns 160 shares of the information technology services provider's stock valued at $25,000 after buying an additional 135 shares during the last quarter. Finally, Blueline Advisors LLC bought a new stake in ServiceNow during the 4th quarter valued at $25,000. Hedge funds and other 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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