ServiceNow (NYSE:NOW) Trading Down 2.9% – What’s Next?

ServiceNow, Inc. (NYSE:NOW)’s share price fell 2.9% during mid-day trading on Friday . The stock traded as low as $126.85 and last traded at $127.34. 19,728,300 shares changed hands during mid-day trading, an increase of 74% from the average session volume of 11,306,080 shares. The stock had previously closed at $131.17.

ServiceNow News Summary

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: Analysts and commentators highlight ServiceNow’s AI-led workflow platform as a growth driver if enterprise AI adoption continues, supporting longer‑term upside. 1 Stock-Split Stock to Buy That Could Soar
• Positive Sentiment: ServiceNow completed a 5-for-1 stock split in December, boosting retail accessibility and liquidity — a structural tailwind for demand. 1 Stock-Split Stock to Buy That Could Soar
• Positive Sentiment: Piper Sandler named NOW among its top software picks for 2026, signaling meaningful upside expectations from a major sell‑side shop. Here’s Why ServiceNow (NOW) Was Among Piper Sandler’s Top Picks For 2026
• Positive Sentiment: Large institutional buys reported in recent quarters (e.g., Nordea, UBS additions) suggest conviction from some asset managers and provide a supportive ownership base. ServiceNow Stock (NOW) Opinions on Recent Price Drop
• Neutral Sentiment: Coverage comparing enterprise AI/workflow vendors highlights ServiceNow’s exposure to the AI automation market but notes competitive differences across players — useful context but not an immediate catalyst. Who is Winning AI Workflow Automation? We Compared 4 Enterprise Stocks.
• Neutral Sentiment: An integration with a smaller identity vendor (AuthID) briefly lifted that partner’s shares; partner integrations can incrementally expand use cases but are not a major standalone driver for NOW. AuthID Shares Cool Off After ServiceNow Integration
• Negative Sentiment: Analyst moves and price‑target cuts (including a recent downgrade that pushed the stock to a 52‑week low) are pressuring the share price and catalyzing selling. ServiceNow (NYSE:NOW) Sets New 52-Week Low on Analyst Downgrade
• Negative Sentiment: Extensive insider selling over recent months (many executive sales, few purchases) raises short‑term governance/optics concerns for some investors. ServiceNow Stock (NOW) Opinions on Recent Price Drop
• Negative Sentiment: Social media and chatter about the recent dip amplify volatility — some see a buying opportunity, but short‑term momentum favors sellers. ServiceNow Stock (NOW) Opinions on Recent Price Drop

Analyst Ratings Changes

A number of research analysts recently commented on NOW shares. The Goldman Sachs Group cut ServiceNow from a “buy” rating to a “sell” rating in a research report on Monday. DA Davidson set a $220.00 price target on ServiceNow and gave the company a “buy” rating in a report on Tuesday, December 16th. BTIG Research restated a “buy” rating and issued a $200.00 price objective on shares of ServiceNow in a report on Monday, December 22nd. BMO Capital Markets reduced their target price on shares of ServiceNow from $232.00 to $230.00 and set an “outperform” rating for the company in a research note on Thursday, October 30th. Finally, Cantor Fitzgerald reissued an “overweight” rating and issued a $240.00 target price on shares of ServiceNow in a research report on Monday, October 27th. Three equities research analysts have rated the stock with a Strong Buy rating, thirty-two have issued a Buy rating, five have given a Hold rating and two have issued a Sell rating to the stock. Based on data from MarketBeat.com, ServiceNow currently has an average rating of “Moderate Buy” and an average target price of $215.97.

ServiceNow Price Performance

The stock has a market cap of $132.23 billion, a price-to-earnings ratio of 76.99, a price-to-earnings-growth ratio of 2.31 and a beta of 0.98. The stock has a fifty day simple moving average of $158.75 and a 200-day simple moving average of $176.57. The company has a current ratio of 1.06, a quick ratio of 1.06 and a debt-to-equity ratio of 0.13.

Insider Activity

In related news, insider Paul Fipps sold 1,525 shares of the firm’s stock in a transaction on Tuesday, November 18th. The stock was sold at an average price of $163.51, for a total value of $249,352.75. Following the completion of the transaction, the insider directly owned 2,705 shares of the company’s stock, valued at $442,294.55. This trade represents a 36.05% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Also, Vice Chairman Nicholas Tzitzon sold 2,610 shares of ServiceNow stock in a transaction on Tuesday, November 18th. The stock was sold at an average price of $165.42, for a total transaction of $431,735.76. Following the sale, the insider owned 15,000 shares in the company, valued at $2,481,240. This represents a 14.82% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last quarter, insiders sold 15,310 shares of company stock worth $2,533,585. Corporate insiders own 0.34% of the company’s stock.

Institutional Trading of ServiceNow

Several hedge funds have recently modified their holdings of the company. Klingman & Associates LLC boosted its stake in ServiceNow by 22.2% in the second quarter. Klingman & Associates LLC now owns 533 shares of the information technology services provider’s stock worth $548,000 after buying an additional 97 shares in the last quarter. Ethic Inc. lifted its holdings in shares of ServiceNow by 1.6% in the 2nd quarter. Ethic Inc. now owns 25,496 shares of the information technology services provider’s stock worth $26,067,000 after acquiring an additional 397 shares during the last quarter. Howard Capital Management Inc. boosted its stake in shares of ServiceNow by 32.0% in the 2nd quarter. Howard Capital Management Inc. now owns 1,465 shares of the information technology services provider’s stock valued at $1,506,000 after purchasing an additional 355 shares in the last quarter. Chicago Capital LLC grew its holdings in shares of ServiceNow by 1.0% during the 2nd quarter. Chicago Capital LLC now owns 78,951 shares of the information technology services provider’s stock valued at $81,168,000 after purchasing an additional 744 shares during the last quarter. Finally, ASR Vermogensbeheer N.V. raised its position in ServiceNow by 128.8% in the 2nd quarter. ASR Vermogensbeheer N.V. now owns 55,394 shares of the information technology services provider’s stock worth $56,944,000 after purchasing an additional 31,181 shares during the period. Institutional investors and hedge funds 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.