ServiceNow (NYSE:NOW) Stock Price Up 3.6% - Time to Buy?

Key Points

• ServiceNow shares rose 3.6% to $118.25 in mid-day trading, with volume below the stock’s average daily level.
• Business momentum remains strong: second-quarter revenue increased 24% year over year to approximately $3.99 billion, beating estimates, while the company’s AI portfolio surpassed $1 billion in annual contract value.
• Analysts maintain a constructive outlook, with a consensus “Moderate Buy” rating and an average price target of $143.39, although the stock trades at a high price-to-earnings ratio of about 73.9.

ServiceNow, Inc. (NYSE:NOW - Get Free Report) shares traded up 3.6% during mid-day trading on Tuesday . The stock traded as high as $118.33 and last traded at $118.25. 18,744,981 shares were traded during mid-day trading, a decline of 22% from the average daily volume of 24,155,936 shares. The stock had previously closed at $114.19.

ServiceNow News Summary

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: AI growth is becoming a significant revenue driver. ServiceNow’s AI portfolio surpassed $1 billion in annual contract value, while second-quarter revenue reached approximately $3.99 billion, up 24% year over year. Investors view the combination of strong growth and expanding AI adoption as supporting the long-term bull case. ServiceNow Is Up 12.6% After Layoffs And AI ACV Tops $1 Billion
• Positive Sentiment: Workforce restructuring is being interpreted as margin-positive. ServiceNow reportedly plans to eliminate up to 1,000 positions, including nearly 300 jobs in Silicon Valley, while keeping overall headcount roughly flat and shifting employees toward AI-focused roles. The cost controls helped fuel a favorable stock reaction because they could improve operating leverage without signaling a broad reduction in hiring. Software company soars amid plans to cut 1,000 jobs
• Positive Sentiment: ServiceNow expanded its cybersecurity opportunity. The company introduced six autonomous security products built on its Armis and Veza acquisitions, presenting “Autonomous Security” as an integrated offering that combines asset intelligence, identity and workflow automation. Analysts and investors see an advantage in ServiceNow’s ability to connect security tools with enterprise operations. ServiceNow debuts six autonomous security products
• Positive Sentiment: New customer demand supports the strategy. A major multi-hospital system selected 3CLogic’s voice-AI solution for ServiceNow to modernize IT service operations, providing another example of adoption within large enterprises. Major Multi-Hospital System Selects 3CLogic to Modernize IT Service Operations
• Neutral Sentiment: Simon Mouyal was named chief marketing officer. The appointment may help communicate ServiceNow’s AI and security strategy, but no immediate financial impact was provided. ServiceNow Names Simon Mouyal Chief Marketing Officer
• Neutral Sentiment: Brokerage sentiment remains constructive, with ServiceNow receiving a consensus “Moderate Buy” rating, while commentary argues beaten-down software stocks offer value despite investor preference for hyperscalers.

Analyst Upgrades and Downgrades

NOW has been the subject of several recent analyst reports. Royal Bank Of Canada restated an "outperform" rating and set a $130.00 price objective on shares of ServiceNow in a research report on Thursday, July 23rd. Jefferies Financial Group reissued a "buy" rating and set a $140.00 target price (up from $135.00) on shares of ServiceNow in a research note on Thursday, July 23rd. TD Cowen reissued a "buy" rating and issued a $140.00 target price on shares of ServiceNow in a report on Friday, July 17th. HSBC reduced their price target on shares of ServiceNow from $226.00 to $171.00 and set a "buy" rating on the stock in a research note on Thursday, April 16th. Finally, DA Davidson set a $170.00 price target on shares of ServiceNow and gave the company a "buy" rating in a report on Monday, July 20th. One analyst has rated the stock with a Strong Buy rating, thirty-six have given a Buy rating, two have given a Hold rating and three have given a Sell rating to the stock. Based on data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average price target of $143.39.

ServiceNow Trading Up 3.6%

The firm's 50-day moving average is $105.88 and its 200 day moving average is $106.01. The company has a current ratio of 0.70, a quick ratio of 0.70 and a debt-to-equity ratio of 0.43. The firm has a market capitalization of $122.27 billion, a price-to-earnings ratio of 73.91, a P/E/G ratio of 1.96 and a beta of 0.96.

ServiceNow (NYSE:NOW - Get Free Report) last posted its earnings results on Wednesday, July 22nd. The information technology services provider reported $0.90 earnings per share for the quarter, topping analysts' consensus estimates of $0.86 by $0.04. The firm had revenue of $3.99 billion for the quarter, compared to analyst estimates of $3.93 billion. ServiceNow had a net margin of 11.34% and a return on equity of 16.45%. The company's revenue for the quarter was up 24.0% compared to the same quarter last year. During the same period in the previous year, the firm posted $0.81 EPS. On average, equities analysts predict that ServiceNow, Inc. will post 2.24 earnings per share for the current fiscal year.

Insider Buying and Selling

In related news, 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 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. This represents a 3.23% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Paul Fipps sold 1,048 shares of the firm's stock in a transaction on Monday, May 18th. The stock was sold at an average price of $98.51, for a total value of $103,238.48. Following the transaction, the insider directly 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 disclosure for this sale is available in the SEC filing. 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. Insiders have sold a total of 19,144 shares of company stock valued at $1,730,097 over the last 90 days. 0.34% of the stock is owned by insiders.

Hedge Funds Weigh In On ServiceNow

A number of hedge funds and other institutional investors have recently made changes to their positions in the stock. Millstone Evans Group LLC boosted its stake in shares of ServiceNow by 400.0% in the 4th quarter. Millstone Evans Group LLC now owns 165 shares of the information technology services provider's stock valued at $25,000 after purchasing an additional 132 shares during the last quarter. CBIZ Investment Advisory Services LLC lifted its holdings in ServiceNow by 540.0% in the fourth 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 period. Blueline Advisors LLC acquired a new position in ServiceNow in the fourth quarter valued at $25,000. Measured Wealth Private Client Group LLC boosted its position in ServiceNow by 560.0% during the fourth quarter. Measured Wealth Private Client Group LLC now owns 165 shares of the information technology services provider's stock valued at $25,000 after acquiring an additional 140 shares during the last quarter. Finally, Wealth Watch Advisors INC grew its holdings in ServiceNow by 432.3% during the 4th quarter. Wealth Watch Advisors INC now owns 165 shares of the information technology services provider's stock worth $25,000 after acquiring an additional 134 shares during the period. 87.18% of the stock is owned by institutional investors and hedge funds.

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.

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