ServiceNow (NYSE:NOW) Stock Price Up 4% - Time to Buy?

Key Points

• ServiceNow shares rose 4% in mid-day trading, with volume running above average as investors reacted to recent positive catalysts and ongoing interest in the stock.
• The company’s latest earnings showed revenue growth of 22.1% year over year to $3.77 billion, while EPS of $0.97 matched analyst expectations and margins remained solid.
• Analyst sentiment is still broadly favorable: ServiceNow has a Moderate Buy consensus with an average price target of $144.71, though some firms recently trimmed targets amid mixed views on valuation.

ServiceNow, Inc. (NYSE:NOW - Get Free Report) was up 4% during mid-day trading on Thursday . The company traded as high as $92.00 and last traded at $90.5620. Approximately 25,342,259 shares changed hands during mid-day trading, an increase of 18% from the average daily volume of 21,502,559 shares. The stock had previously closed at $87.05.

Trending Headlines about ServiceNow

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: ServiceNow’s expanding partnerships with Boomi, FedEx, and Accenture reinforce its AI and workflow automation growth narrative. FedEx advances ServiceNow partnership with procurement integration
• Positive Sentiment: Analyst commentary remains constructive, with investors still viewing ServiceNow as a leading AI-enabled enterprise software platform. ServiceNow and Accenture Launch Engineering Program to Scale Agentic AI for Enterprises

Analyst Ratings Changes

A number of research analysts have issued reports on NOW shares. Capital One Financial raised their price target on shares of ServiceNow from $105.00 to $120.00 and gave the stock an "overweight" rating in a report on Tuesday, May 5th. The Goldman Sachs Group decreased their price target on shares of ServiceNow from $188.00 to $163.00 and set a "buy" rating for the company in a report on Thursday, April 23rd. BMO Capital Markets decreased their price target on shares of ServiceNow from $120.00 to $115.00 and set an "outperform" rating for the company in a report on Thursday, April 23rd. KeyCorp set a $85.00 price target on shares of ServiceNow and gave the stock an "underweight" rating in a report on Thursday, April 23rd. Finally, Argus decreased their price target on shares of ServiceNow from $180.00 to $134.00 and set a "buy" rating for the company in a report on Friday, April 24th. Two equities research analysts have rated the stock with a Strong Buy rating, thirty-three have issued a Buy rating, six have issued a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus price target of $144.71.

ServiceNow Trading Up 4.0%

The company has a debt-to-equity ratio of 0.13, a current ratio of 0.84 and a quick ratio of 0.84. The company's fifty day moving average is $101.35 and its 200-day moving average is $129.98. The stock has a market cap of $93.37 billion, a PE ratio of 53.97, a PEG ratio of 1.58 and a beta of 0.82.

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

Insider Buying and Selling

In related news, insider Kevin Thomas Mcbride sold 1,400 shares of the firm's stock in a transaction on Friday, February 13th. The shares were sold at an average price of $105.71, for a total transaction of $147,994.00. Following the completion of the transaction, the insider owned 26,314 shares of the company's stock, valued at $2,781,652.94. This trade represents a 5.05% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, insider Jacqueline P. Canney sold 8,927 shares of the firm's stock in a transaction 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 transaction, the insider directly owned 29,531 shares of the company's stock, valued at approximately $2,645,977.60. This trade represents a 23.21% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 23,815 shares of company stock valued at $2,358,927 over the last 90 days. Insiders own 0.34% of the company's stock.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the company. Vanguard Group Inc. increased its holdings in ServiceNow by 404.5% in the fourth quarter. Vanguard Group Inc. now owns 101,963,384 shares of the information technology services provider's stock valued at $15,619,771,000 after buying an additional 81,752,460 shares in the last quarter. State Street Corp increased its holdings in ServiceNow by 406.6% in the fourth quarter. State Street Corp now owns 47,896,597 shares of the information technology services provider's stock valued at $7,337,280,000 after buying an additional 38,441,898 shares in the last quarter. Price T Rowe Associates Inc. MD increased its holdings in ServiceNow by 371.0% in the fourth quarter. Price T Rowe Associates Inc. MD now owns 32,395,663 shares of the information technology services provider's stock valued at $4,962,692,000 after buying an additional 25,517,218 shares in the last quarter. Geode Capital Management LLC increased its holdings in ServiceNow by 404.8% in the fourth quarter. Geode Capital Management LLC now owns 23,512,428 shares of the information technology services provider's stock valued at $3,591,425,000 after buying an additional 18,854,775 shares in the last quarter. Finally, Morgan Stanley increased its holdings in ServiceNow by 335.6% in the fourth quarter. Morgan Stanley now owns 22,733,483 shares of the information technology services provider's stock valued at $3,482,543,000 after buying an additional 17,514,679 shares in the last quarter. Hedge funds and other institutional investors 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.

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