ServiceNow (NYSE:NOW) Trading 5.1% Higher - Should You Buy?

Key Points

• ServiceNow shares rose 5.1% on Friday on unusually heavy trading volume, with the stock reaching as high as $96.67 after closing previously at $90.50.
• The company is getting a lift from a series of AI and enterprise workflow partnerships, including deals with Experian, Accenture, FedEx Dataworks, and Boomi aimed at expanding agentic AI and automation use cases.
• Despite strong recent revenue growth and solid analyst support, valuation and momentum concerns remain; analysts still rate the stock a Moderate Buy with a consensus target of $144.71, while some firms have recently cut price targets.

Shares of ServiceNow, Inc. (NYSE:NOW - Get Free Report) traded up 5.1% on Friday . The stock traded as high as $96.67 and last traded at $95.1530. 34,220,771 shares traded hands during trading, an increase of 58% from the average session volume of 21,641,699 shares. The stock had previously closed at $90.50.

Key Headlines Impacting ServiceNow

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: ServiceNow announced a new global multi-year partnership with Experian to embed trusted decisioning and autonomous AI agents into ServiceNow workflows, starting with employee onboarding and third-party risk management. Experian Partners With ServiceNow to Scale Trusted Decisioning to Agentic AI
• Positive Sentiment: ServiceNow and Accenture launched a forward-deployed engineering program to move agentic AI projects from pilots into full enterprise deployment, which could accelerate monetization of AI-driven workflows. ServiceNow AI Partnerships Aim To Turn Pilot Projects Into Core Workflows
• Positive Sentiment: ServiceNow expanded its partnership with FedEx Dataworks to integrate logistics data into Source-to-Pay workflows, strengthening its enterprise automation use cases and visibility into supply-chain operations. FedEx advances ServiceNow partnership with procurement integration
• Positive Sentiment: ServiceNow deepened ties with Boomi and launched the Workflow Data Network Passport Program to improve real-time data activation across enterprise systems, supporting its AI control-tower strategy. ServiceNow And Boomi Deepen Ties To Power AI Control Tower Ambitions
• Neutral Sentiment: Recent commentary highlighted that ServiceNow’s subscription revenue grew 22% and that strong cRPO provides good revenue visibility, which supports the long-term growth case but is already consistent with the company’s existing AI momentum. Can an Expanding Clientele Boost ServiceNow's Top-Line Growth?
• Neutral Sentiment: Some market commentary notes that ServiceNow’s stock has been under pressure and that bearish traders are positioning for further downside, reflecting lingering valuation and momentum concerns. See ServiceNow Stock Heading Lower? This Trade Profits From Further Downside.

Analyst Upgrades and Downgrades

Several research analysts have recently weighed in on the company. The Goldman Sachs Group reduced their target price on ServiceNow from $188.00 to $163.00 and set a "buy" rating for the company in a research note on Thursday, April 23rd. Barclays reaffirmed an "overweight" rating and set a $134.00 target price (up from $132.00) on shares of ServiceNow in a research note on Tuesday, May 5th. JPMorgan Chase & Co. reduced their target price on ServiceNow from $195.00 to $145.00 and set an "overweight" rating for the company in a research note on Thursday, April 23rd. KeyCorp set a $85.00 target price on ServiceNow and gave the stock an "underweight" rating in a research note on Thursday, April 23rd. Finally, Truist Financial reduced their target price on ServiceNow from $125.00 to $120.00 and set a "buy" rating for the company in a research note on Thursday, April 23rd. Two investment analysts have rated the stock with a Strong Buy rating, thirty-three have issued a Buy rating, six have assigned a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, the company presently has an average rating of "Moderate Buy" and a consensus target price of $144.71.

ServiceNow Trading Up 5.1%

The company has a 50 day moving average of $100.89 and a 200 day moving average of $129.31. The company has a debt-to-equity ratio of 0.13, a quick ratio of 0.84 and a current ratio of 0.84. The stock has a market capitalization of $98.10 billion, a price-to-earnings ratio of 56.71, a P/E/G ratio of 1.54 and a beta of 0.82.

ServiceNow (NYSE:NOW - Get Free Report) last posted its quarterly earnings data on Wednesday, April 22nd. The information technology services provider reported $0.97 EPS for the quarter, meeting the consensus estimate 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 firm's revenue was up 22.1% compared to the same quarter last year. During the same period in the prior year, the company earned $0.81 EPS. On average, research analysts predict that ServiceNow, Inc. will post 2.35 EPS for the current fiscal year.

Insider Buying and Selling at ServiceNow

In other ServiceNow news, insider Jacqueline P. Canney sold 8,927 shares of the company's stock in a transaction on Friday, April 24th. The stock was sold at an average price of $89.60, for a total value of $799,859.20. Following the completion of the sale, the insider directly owned 29,531 shares in the company, valued at $2,645,977.60. This represents a 23.21% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Also, insider Paul Fipps sold 3,696 shares of the company's stock in a transaction on Monday, February 23rd. The shares were sold at an average price of $101.77, for a total value of $376,141.92. Following the completion of the sale, the insider owned 8,061 shares of the company's stock, valued at approximately $820,367.97. The trade was a 31.44% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last 90 days, insiders sold 22,415 shares of company stock valued at $2,210,933. 0.34% of the stock is owned by company insiders.

Hedge Funds Weigh In On ServiceNow

A number of hedge funds have recently modified their holdings of the business. Cohen Klingenstein LLC raised its position in ServiceNow by 400.0% in the 4th quarter. Cohen Klingenstein LLC now owns 10,000 shares of the information technology services provider's stock valued at $1,532,000 after purchasing an additional 8,000 shares in the last quarter. World Investment Advisors raised its position in ServiceNow by 411.7% in the 4th quarter. World Investment Advisors now owns 47,955 shares of the information technology services provider's stock valued at $7,346,000 after purchasing an additional 38,583 shares in the last quarter. Sumitomo Mitsui Trust Group Inc. raised its position in ServiceNow by 385.9% in the 4th quarter. Sumitomo Mitsui Trust Group Inc. now owns 2,599,397 shares of the information technology services provider's stock valued at $398,202,000 after purchasing an additional 2,064,440 shares in the last quarter. Torray Investment Partners LLC raised its position in ServiceNow by 390.5% in the 4th quarter. Torray Investment Partners LLC now owns 40,629 shares of the information technology services provider's stock valued at $6,224,000 after purchasing an additional 32,345 shares in the last quarter. Finally, Jennison Associates LLC raised its position in ServiceNow by 280.1% in the 4th quarter. Jennison Associates LLC now owns 8,432,389 shares of the information technology services provider's stock valued at $1,291,758,000 after purchasing an additional 6,213,762 shares in the last quarter. 87.18% of the stock is currently owned by hedge funds and other institutional investors.

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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