ServiceNow (NYSE:NOW) Trading Down 2.5% - Here's Why

Key Points

• Shares of ServiceNow fell 2.5% to about $112.76 on Thursday with ~18.3M shares traded (9% below average), and the stock is trading below its 50‑day ($120.73) and 200‑day ($156.09) moving averages.
• Analysts maintain a “Moderate Buy” consensus with a mean target of $192.06, though several firms recently trimmed price targets (e.g., TD Cowen to $185) while ratings range from Strong Buy to Sell.
• Insiders have been selling recently (16,237 shares, ~$1.7M over 90 days), but institutional investors own 87.18% of the company after large fourth‑quarter purchases by Vanguard, State Street, Price T. Rowe and others.

Shares of ServiceNow, Inc. (NYSE:NOW - Get Free Report) dropped 2.5% on Thursday . The company traded as low as $112.42 and last traded at $112.7640. Approximately 18,312,992 shares traded hands during trading, a decline of 9% from the average daily volume of 20,037,416 shares. The stock had previously closed at $115.63.

Analyst Upgrades and Downgrades

Several equities research analysts have recently issued reports on the stock. TD Cowen lowered their target price on shares of ServiceNow from $200.00 to $185.00 and set a "buy" rating for the company in a report on Thursday, January 29th. Weiss Ratings reiterated a "hold (c)" rating on shares of ServiceNow in a report on Thursday, January 22nd. Stifel Nicolaus set a $180.00 price objective on shares of ServiceNow and gave the stock a "buy" rating in a research note on Thursday, January 29th. UBS Group set a $115.00 target price on ServiceNow in a research report on Thursday, January 29th. Finally, Argus raised ServiceNow to a "strong-buy" rating in a research note on Wednesday, February 4th. Three analysts have rated the stock with a Strong Buy rating, thirty-one have issued a Buy rating, six have assigned a Hold rating and two have given a Sell rating to the stock. According to data from MarketBeat.com, the company has an average rating of "Moderate Buy" and a consensus target price of $192.06.

ServiceNow Stock Down 2.5%

The company has a debt-to-equity ratio of 0.12, a quick ratio of 1.00 and a current ratio of 1.00. The company has a market cap of $117.95 billion, a P/E ratio of 67.60, a price-to-earnings-growth ratio of 1.97 and a beta of 0.99. The business's fifty day moving average is $120.73 and its two-hundred day moving average is $156.09.

ServiceNow (NYSE:NOW - Get Free Report) last posted its quarterly earnings results on Wednesday, January 28th. The information technology services provider reported $0.92 earnings per share for the quarter, beating the consensus estimate of $0.89 by $0.03. ServiceNow had a net margin of 13.16% and a return on equity of 18.54%. The firm had revenue of $3.57 billion during the quarter, compared to the consensus estimate of $3.53 billion. During the same quarter in the previous year, the firm posted $0.73 earnings per share. The company's revenue was up 20.7% on a year-over-year basis. Equities analysts predict that ServiceNow, Inc. will post 8.93 EPS for the current year.

Insiders Place Their Bets

In other news, insider Paul Fipps sold 3,696 shares of the stock in a transaction on Monday, February 23rd. The stock was sold at an average price of $101.77, for a total transaction of $376,141.92. Following the transaction, the insider owned 8,061 shares of the company's stock, valued at approximately $820,367.97. This represents a 31.44% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, Director Paul Edward Chamberlain sold 1,500 shares of the firm's stock in a transaction on Thursday, February 12th. The shares were sold at an average price of $101.17, for a total value of $151,755.00. Following the transaction, the director owned 46,430 shares in the company, valued at approximately $4,697,323.10. This represents a 3.13% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last ninety days, insiders sold 16,237 shares of company stock worth $1,697,162. 0.34% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On ServiceNow

Several large investors have recently modified their holdings of the business. Vanguard Group Inc. lifted its holdings in ServiceNow by 404.5% during the fourth quarter. Vanguard Group Inc. now owns 101,963,384 shares of the information technology services provider's stock worth $15,619,771,000 after buying an additional 81,752,460 shares during the period. State Street Corp increased its holdings in shares of ServiceNow by 406.6% in the 4th 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 acquiring an additional 38,441,898 shares during the period. Price T Rowe Associates Inc. MD increased its holdings in shares of ServiceNow by 371.0% in the 4th 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 acquiring an additional 25,517,218 shares during the period. Geode Capital Management LLC raised its position in shares of ServiceNow by 404.8% in the 4th quarter. Geode Capital Management LLC now owns 23,512,428 shares of the information technology services provider's stock worth $3,591,425,000 after acquiring an additional 18,854,775 shares in the last quarter. Finally, Morgan Stanley raised its position in shares of ServiceNow by 335.6% in the 4th quarter. Morgan Stanley now owns 22,733,483 shares of the information technology services provider's stock worth $3,482,543,000 after acquiring an additional 17,514,679 shares in the last quarter. Institutional investors own 87.18% of the company's stock.

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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