ServiceNow (NYSE:NOW) Sets New 52-Week Low After Analyst Downgrade

ServiceNow, Inc. (NYSE:NOW)’s stock price hit a new 52-week low on Thursday after KeyCorp lowered their price target on the stock from $155.00 to $115.00. KeyCorp currently has an underweight rating on the stock. ServiceNow traded as low as $121.30 and last traded at $116.9620, with a volume of 2382671 shares trading hands. The stock had previously closed at $129.62.

Several other research firms have also recently commented on NOW. Needham & Company LLC reaffirmed a “buy” rating and issued a $155.00 target price on shares of ServiceNow in a research report on Thursday. Oppenheimer restated an “outperform” rating and issued a $175.00 price target (down from $200.00) on shares of ServiceNow in a research note on Wednesday, January 21st. Capital One Financial lowered their price objective on shares of ServiceNow from $188.00 to $161.00 and set an “overweight” rating on the stock in a research note on Friday, January 16th. Stifel Nicolaus cut their price objective on shares of ServiceNow from $230.00 to $200.00 and set a “buy” rating for the company in a research report on Friday, January 9th. Finally, Zacks Research cut ServiceNow from a “strong-buy” rating to a “hold” rating in a research report on Tuesday, November 11th. Two analysts have rated the stock with a Strong Buy rating, thirty-two have assigned a Buy rating, six have given a Hold rating and two have issued a Sell rating to the company’s stock. Based on data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and an average target price of $198.10.

Insider Buying and Selling

In related news, Director Paul Edward Chamberlain sold 1,500 shares of the firm’s stock in a transaction that occurred on Friday, November 28th. The stock was sold at an average price of $161.60, for a total transaction of $242,400.00. Following the completion of the sale, the director directly owned 47,930 shares of the company’s stock, valued at approximately $7,745,488. This trade represents a 3.03% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, insider Jacqueline P. Canney sold 470 shares of the business’s stock in a transaction on Tuesday, November 18th. The shares were sold at an average price of $165.42, for a total value of $77,745.52. Following the transaction, the insider owned 15,135 shares of the company’s stock, valued at approximately $2,503,571.16. The trade was a 3.01% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold a total of 15,310 shares of company stock worth $2,533,585 over the last three months. 0.34% of the stock is currently owned by company insiders.

Key ServiceNow News

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: Beat Q4 estimates and raised 2026 subscription guidance — the core fundamental news that supports longer‑term growth expectations and the stock’s premium multiple. MarketWatch: Q4 results and guidance
• Positive Sentiment: Board authorized an additional $5B buyback (including $2B accelerated) — meaningful shareholder return that reduces float and can support the share price. BusinessWire: $5B buyback
• Positive Sentiment: Expanded AI partnerships (Anthropic, OpenAI) and customer wins (Fiserv, Panasonic Avionics) — strengthens AI monetization narrative and product differentiation. BusinessWire: Anthropic partnership
• Positive Sentiment: Multiple brokers reaffirm Buy ratings and raised/maintained price targets (BTIG $200, Needham $155, UBS $170) — signals continued analyst conviction in multi‑year growth and valuation premium. Benzinga: Analyst notes
• Neutral Sentiment: Unusually large call option activity — could reflect speculative hedging or directional bets around post‑earnings volatility rather than a directional consensus.
• Neutral Sentiment: CEO publicly bought stock and committed to staying through 2030 — supportive signal of insider confidence but not a near‑term operational catalyst by itself. Business Insider: CEO buy
• Negative Sentiment: Shares sold off after the print — investors parsed the subscription revenue details and judged the outlook or cadence of growth as less than transformative, prompting profit‑taking in a weak software tape. Blockonomi: post‑earnings selloff
• Negative Sentiment: Market commentary highlights “iffy” subscription revenue forecast and AI disruption fears for legacy software players — sentiment pressure that can outweigh near‑term fundamental beats. SiliconANGLE: subscription concerns
• Negative Sentiment: BMO trimmed its price target slightly (175→170) — a modest negative signal from a sell‑side desk even though the rating remains positive.

Institutional Investors Weigh In On ServiceNow

Large investors have recently added to or reduced their stakes in the stock. Kilter Group LLC purchased a new position in ServiceNow during the 2nd quarter worth $25,000. IAG Wealth Partners LLC grew its holdings in ServiceNow by 200.0% during 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 in the last quarter. Noble Wealth Management PBC grew its holdings in ServiceNow by 400.0% during 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 in the last quarter. Lodestone Wealth Management LLC bought a new stake in shares of ServiceNow in the 4th quarter valued at about $26,000. Finally, Albion Financial Group UT increased its holdings in ServiceNow by 400.0% during the fourth quarter. Albion Financial Group UT now owns 170 shares of the information technology services provider’s stock valued at $26,000 after buying an additional 136 shares during the period. 87.18% of the stock is owned by hedge funds and other institutional investors.

ServiceNow Stock Down 9.8%

The business’s 50 day moving average is $151.58 and its 200 day moving average is $171.79. The company has a quick ratio of 1.06, a current ratio of 1.06 and a debt-to-equity ratio of 0.13. The company has a market cap of $121.45 billion, a P/E ratio of 70.71, a P/E/G ratio of 2.27 and a beta of 0.98.

ServiceNow (NYSE:NOW) last released its quarterly earnings results on Wednesday, January 28th. The information technology services provider reported $0.92 EPS for the quarter, topping the consensus estimate of $0.89 by $0.03. ServiceNow had a return on equity of 18.74% and a net margin of 13.66%.The firm had revenue of $3.57 billion during the quarter, compared to analyst estimates of $3.53 billion. During the same period in the previous year, the company posted $0.73 EPS. The business’s revenue for the quarter was up 20.7% compared to the same quarter last year. As a group, equities analysts anticipate that ServiceNow, Inc. will post 8.93 earnings per share for the current fiscal year.

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.