ServiceNow (NYSE:NOW) Trading Up 2.4% - Time to Buy?

Key Points

• ServiceNow shares rose 2.4% in mid-day trading, reaching as high as $104.59, with volume running slightly above average. The move adds to recent momentum in the stock.
• Recent commentary remains broadly bullish, with ServiceNow being pitched as an attractive software and AI workflow play after a pullback. Analysts continue to cite its AI strategy and recovery potential as supporting the stock.
• The company’s latest earnings were solid: EPS matched estimates, revenue beat expectations at $3.77 billion, and sales grew 22.1% year over year. Even so, some analysts have trimmed price targets, though the overall consensus remains a Moderate Buy.

ServiceNow, Inc. (NYSE:NOW - Get Free Report)'s stock price was up 2.4% during mid-day trading on Friday . The company traded as high as $104.59 and last traded at $102.1270. Approximately 23,355,480 shares changed hands during mid-day trading, an increase of 4% from the average daily volume of 22,446,465 shares. The stock had previously closed at $99.69.

ServiceNow News Summary

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: ServiceNow is being highlighted as an attractive software stock after a sharp pullback, with commentary saying its valuation looks compelling relative to still-strong growth forecasts. Intuit Drops 63%: Are Software Stocks Deep Value or a Trap?
• Positive Sentiment: Analysts and market commentators continue to frame ServiceNow as an AI workflow recovery story, citing Bank of America’s Buy rating and $130 price target as support for the stock. Why ServiceNow (NOW) Is Still an AI Workflow Recovery Bet
• Positive Sentiment: New AI products and broader AI strategy are being credited with helping drive a rally in ServiceNow shares, reinforcing optimism around future demand. ServiceNow Rally Builds Around Broader AI Strategy
• Positive Sentiment: ServiceNow’s recent earnings remain a positive backdrop: the company met EPS expectations, beat on revenue, and delivered 22.1% year-over-year revenue growth. This supports the case for continued multiple expansion if growth stays resilient.
• Neutral Sentiment: Several articles today focused on whether ServiceNow’s post-earnings move can continue, suggesting the stock may be consolidating as investors reassess growth estimates rather than reacting to a new company-specific catalyst. Why Is ServiceNow (NOW) Up 17.6% Since Last Earnings Report?
• Neutral Sentiment: One note cut ServiceNow’s price target from $168 to $140 while keeping a Buy rating, which signals some caution on upside but still reflects confidence in the business. Citic Securities Adjusts ServiceNow Price Target

Analysts Set New Price Targets

A number of research analysts have issued reports on NOW shares. UBS Group set a $150.00 price objective on ServiceNow in a research note on Thursday, April 23rd. Truist Financial reduced their price objective on ServiceNow from $125.00 to $120.00 and set a "buy" rating for the company in a research note on Thursday, April 23rd. Oppenheimer set a $130.00 price objective on ServiceNow and gave the company an "outperform" rating in a research note on Wednesday, April 15th. Deutsche Bank Aktiengesellschaft reduced their price objective on ServiceNow from $180.00 to $135.00 and set a "buy" rating for the company in a research note on Thursday, April 16th. Finally, Argus reduced their price objective on ServiceNow from $180.00 to $134.00 and set a "buy" rating for the company in a research note on Friday, April 24th. Two equities research analysts have rated the stock with a Strong Buy rating, thirty-four have given a Buy rating, six have assigned a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and a consensus price target of $141.85.

ServiceNow Price Performance

The company has a current ratio of 0.84, a quick ratio of 0.84 and a debt-to-equity ratio of 0.13. The business has a 50-day moving average price of $99.01 and a 200 day moving average price of $126.30. The stock has a market cap of $105.29 billion, a PE ratio of 60.86, a PEG ratio of 1.87 and a beta of 0.82.

ServiceNow (NYSE:NOW - Get Free Report) last issued its quarterly earnings data on Wednesday, April 22nd. The information technology services provider reported $0.97 earnings per share (EPS) for the quarter, hitting analysts' consensus estimates of $0.97. The business had revenue of $3.77 billion for the quarter, compared to analysts' expectations of $3.75 billion. ServiceNow had a return on equity of 18.16% and a net margin of 12.59%.The firm's quarterly revenue was up 22.1% on a year-over-year basis. During the same quarter in the prior year, the firm posted $0.81 EPS. As a group, research analysts forecast that ServiceNow, Inc. will post 2.35 earnings per share for the current fiscal year.

Insider Buying and Selling

In related news, Director Anita M. Sands sold 16,445 shares of the stock in a transaction dated Thursday, May 14th. The stock was sold at an average price of $90.14, for a total transaction of $1,482,352.30. Following the sale, the director owned 30,090 shares of the company's stock, valued at approximately $2,712,312.60. This represents a 35.34% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, insider Jacqueline P. Canney sold 8,927 shares of the stock in a transaction dated Friday, April 24th. The stock was sold at an average price of $89.60, for a total value of $799,859.20. Following the sale, the insider directly owned 29,531 shares in the company, valued at $2,645,977.60. This trade represents a 23.21% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last quarter, insiders sold 31,767 shares of company stock worth $2,906,098. Company insiders own 0.34% of the company's stock.

Institutional Trading of ServiceNow

Institutional investors have recently added to or reduced their stakes in the stock. IAG Wealth Partners LLC increased its stake in ServiceNow by 200.0% in the 3rd quarter. IAG Wealth Partners LLC now owns 27 shares of the information technology services provider's stock worth $25,000 after acquiring an additional 18 shares during the last quarter. Noble Wealth Management PBC increased its stake in ServiceNow by 400.0% in the 4th quarter. Noble Wealth Management PBC now owns 160 shares of the information technology services provider's stock worth $25,000 after acquiring an additional 128 shares during the last quarter. Millstone Evans Group LLC increased its stake in ServiceNow by 400.0% in the 4th quarter. Millstone Evans Group LLC now owns 165 shares of the information technology services provider's stock worth $25,000 after acquiring an additional 132 shares during the last quarter. CBIZ Investment Advisory Services LLC increased its stake in ServiceNow by 540.0% in the 4th quarter. CBIZ Investment Advisory Services LLC now owns 160 shares of the information technology services provider's stock worth $25,000 after acquiring an additional 135 shares during the last quarter. Finally, Blueline Advisors LLC bought a new position in ServiceNow in the 4th quarter worth about $25,000. Hedge funds and other 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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