ServiceNow (NYSE:NOW) Stock Price Down 2.6% - Time to Sell?

Key Points

• ServiceNow shares fell 2.6% in midday trading, briefly touching $101.20 before last trading near $101.45, on volume below its recent average.
• Wall Street remains broadly positive: analysts still mostly rate the stock a buy, with a consensus “Moderate Buy” and average price target of $142.17. Several firms recently trimmed targets, but Benchmark raised its target to $130 and reiterated a buy rating.
• Business and AI-related catalysts remain supportive, including new partnerships with Cognizant and Wipro around AI governance and agentic AI deployment. The company also recently posted earnings that met EPS expectations and beat on revenue, with sales up 22.1% year over year.

ServiceNow, Inc. (NYSE:NOW - Get Free Report) was down 2.6% during mid-day trading on Tuesday . The company traded as low as $101.20 and last traded at $101.4490. Approximately 17,039,760 shares changed hands during trading, a decline of 29% from the average daily volume of 23,959,475 shares. The stock had previously closed at $104.15.

More ServiceNow News

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: Benchmark raised its price target on ServiceNow to $130 from $125 and kept a buy rating, signaling confidence that the stock still has room to run. Article source
• Positive Sentiment: ServiceNow announced partnerships with Cognizant and Wipro focused on AI governance and agentic AI deployment, which could help expand enterprise adoption and reinforce its role in AI workflow automation. Article source Article source
• Positive Sentiment: Recent market coverage noted that ServiceNow outperformed the broader market in the latest session, reflecting continued investor interest in the stock. Article source
• Neutral Sentiment: Commentary from Columbia Threadneedle highlighted ServiceNow in the context of growing AI-native adoption, but the piece was more of a portfolio discussion than a direct company-specific catalyst. Article source
• Negative Sentiment: A report of a ServiceNow security breach exposing enterprise customer data could pressure sentiment if investors worry about trust, compliance, or enterprise customer retention. Article source
• Negative Sentiment: Some analysts and comparison pieces suggested Salesforce may have the stronger near-term cloud software case, which could weigh on relative valuation sentiment for ServiceNow. Article source Article source

Wall Street Analyst Weigh In

A number of research analysts recently issued reports on NOW shares. TD Cowen reissued a "buy" rating and set a $140.00 price target on shares of ServiceNow in a research report on Thursday, April 23rd. Piper Sandler lowered their price target on shares of ServiceNow from $200.00 to $140.00 and set an "overweight" rating for the company in a research report on Thursday, April 23rd. Sanford C. Bernstein reissued an "outperform" rating and set a $236.00 price target (up from $226.00) on shares of ServiceNow in a research report on Wednesday, May 6th. Citic Securities lowered their price target on shares of ServiceNow from $168.00 to $140.00 and set a "buy" rating for the company in a research report on Thursday, May 21st. Finally, BMO Capital Markets lowered their price target on shares of ServiceNow from $120.00 to $115.00 and set an "outperform" rating for the company in a research report on Thursday, April 23rd. One investment analyst has rated the stock with a Strong Buy rating, thirty-five have given a Buy rating, five have issued a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and a consensus price target of $142.17.

ServiceNow Stock Performance

The firm has a market capitalization of $104.59 billion, a P/E ratio of 60.46, a price-to-earnings-growth ratio of 1.69 and a beta of 0.94. The company has a current ratio of 0.84, a quick ratio of 0.84 and a debt-to-equity ratio of 0.13. The business's 50 day simple moving average is $99.85 and its two-hundred day simple moving average is $119.31.

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

Insider Activity

In other news, Director Paul Edward Chamberlain sold 1,500 shares of ServiceNow stock in a transaction that occurred on Thursday, May 14th. The shares were 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 in the company, valued at $3,919,243.90. The trade was a 3.23% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Jacqueline P. Canney sold 8,927 shares of ServiceNow stock in a transaction that occurred on Friday, April 24th. The stock was sold at an average price of $89.60, for a total transaction 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. This represents a 23.21% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold a total of 28,071 shares of company stock valued at $2,529,956 in the last quarter. 0.34% of the stock is owned by company insiders.

Institutional Trading of ServiceNow

Large investors have recently made changes to their positions in the stock. IAG Wealth Partners LLC grew its stake 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 acquiring an additional 18 shares during the period. Wealth Watch Advisors INC bought a new stake in shares of ServiceNow in the third quarter worth approximately $29,000. Texas Capital Bancshares Inc TX bought a new stake in shares of ServiceNow in the third quarter worth approximately $37,000. Ameriflex Group Inc. grew its stake in shares of ServiceNow by 187.5% in the third quarter. Ameriflex Group Inc. now owns 46 shares of the information technology services provider's stock worth $42,000 after acquiring an additional 30 shares during the period. Finally, Kelleher Financial Advisors bought a new stake in shares of ServiceNow in the third quarter worth approximately $50,000. 87.18% of the stock is currently owned by 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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