ServiceNow (NYSE:NOW) Stock Price Up 6.6% - Should You Buy?

Key Points

• ServiceNow shares rose 6.6% in midday trading, reaching as high as $106.69 as volume came in above average. The move followed renewed positive sentiment around the stock.
• Guggenheim upgraded ServiceNow to Buy, arguing the shares look undervalued after recent weakness and that AI-related fears may be overdone. Other commentary also pointed to ServiceNow’s AI adoption, security tools, and workflow growth as long-term positives.
• Investors are also watching the company’s July 22 earnings report, with analysts expecting ServiceNow to potentially beat estimates again. The stock currently carries a consensus Moderate Buy rating and an average price target of $141.68.

ServiceNow, Inc. (NYSE:NOW - Get Free Report) shares were up 6.6% on Wednesday . The stock traded as high as $106.69 and last traded at $105.8140. 26,090,038 shares changed hands during mid-day trading, an increase of 8% from the average daily volume of 24,183,455 shares. The stock had previously closed at $99.28.

Key Stories Impacting ServiceNow

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: Guggenheim upgraded ServiceNow to Buy, saying the stock looks undervalued after recent weakness and that AI fears have become too extreme for the current valuation. ServiceNow and Salesforce shares now look like buys, as ‘Armageddon' fears are too extreme, analyst says
• Positive Sentiment: ServiceNow and Accenture launched a joint AI-driven security and risk-management initiative, reinforcing NOW’s enterprise AI positioning and expanding potential demand for its platform. ServiceNow to Announce Second Quarter 2026 Financial Results on July 22
• Positive Sentiment: Analysts and commentary highlighted ServiceNow’s AI adoption, security offerings, and workflow growth as supports for long-term revenue and earnings potential. NOW Benefits From Enterprise AI Adoption: Buy, Sell, or Hold the Stock?
• Positive Sentiment: The company’s upcoming July 22 earnings report is drawing attention, with some analysts expecting ServiceNow to beat estimates again based on its strong historical track record. Will ServiceNow (NOW) Beat Estimates Again in Its Next Earnings Report?

Wall Street Analyst Weigh In

A number of brokerages have weighed in on NOW. Deutsche Bank Aktiengesellschaft cut their target price on shares of ServiceNow from $180.00 to $135.00 and set a "buy" rating for the company in a research report on Thursday, April 16th. UBS Group reaffirmed an "outperform" rating on shares of ServiceNow in a report on Tuesday, May 26th. Citigroup boosted their target price on shares of ServiceNow from $154.00 to $158.00 and gave the company a "buy" rating in a report on Thursday, April 30th. TD Cowen reaffirmed a "buy" rating and issued a $140.00 price target on shares of ServiceNow in a report on Thursday, April 23rd. Finally, Benchmark boosted their price objective on ServiceNow from $125.00 to $130.00 and gave the company a "buy" rating in a research note on Monday, June 15th. One analyst has rated the stock with a Strong Buy rating, thirty-six have assigned a Buy rating, four have issued a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, the company presently has a consensus rating of "Moderate Buy" and an average price target of $141.68.

ServiceNow Price Performance

The business has a 50 day simple moving average of $100.23 and a two-hundred day simple moving average of $113.88. The firm has a market capitalization of $109.09 billion, a P/E ratio of 63.06, a price-to-earnings-growth ratio of 1.66 and a beta of 0.94. 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 issued its quarterly earnings results 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. The firm had revenue of $3.77 billion during the quarter, compared to the consensus estimate of $3.75 billion. ServiceNow had a return on equity of 18.16% and a net margin of 12.59%.The company's revenue for the quarter was up 22.1% on a year-over-year basis. During the same quarter last year, the company posted $0.81 EPS. On average, sell-side analysts expect that ServiceNow, Inc. will post 2.34 EPS for the current fiscal year.

Insider Activity at ServiceNow

In related 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 transaction, the insider directly owned 12,072 shares in the company, valued at approximately $1,189,212.72. The trade was a 7.99% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. 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 Paul Edward Chamberlain sold 1,500 shares of ServiceNow stock in a transaction dated Thursday, May 14th. The stock was sold at an average price of $87.23, for a total value of $130,845.00. Following the sale, the director directly owned 44,930 shares of the company's stock, valued at approximately $3,919,243.90. This trade represents 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. Insiders sold 28,071 shares of company stock worth $2,529,956 over the last quarter. 0.34% of the stock is currently owned by corporate insiders.

Institutional Trading of ServiceNow

Several hedge funds and other institutional investors have recently bought and sold shares of NOW. Vanguard Group Inc. grew its holdings in shares of ServiceNow by 404.5% during the 4th 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 purchasing an additional 81,752,460 shares during the last quarter. State Street Corp lifted its stake 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 worth $7,337,280,000 after purchasing an additional 38,441,898 shares during the last quarter. Price T Rowe Associates Inc. MD boosted its position in ServiceNow by 371.0% during 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 during the period. Geode Capital Management LLC boosted its position in ServiceNow by 404.8% during 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 during the period. Finally, Morgan Stanley grew its stake in shares of ServiceNow by 335.6% during 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 during 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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