ServiceNow (NYSE:NOW) Stock Price Down 1.6% – Time to Sell?

ServiceNow, Inc. (NYSE:NOW) shares dropped 1.6% during mid-day trading on Wednesday . The stock traded as low as $129.14 and last traded at $129.6820. Approximately 18,496,936 shares were traded during mid-day trading, an increase of 43% from the average daily volume of 12,915,059 shares. The stock had previously closed at $131.80.

Key ServiceNow News

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: Q4 results beat expectations — EPS and revenue topped street estimates and subscription revenue grew >20%, showing continued demand and AI adoption. Earnings Beat
• Positive Sentiment: Board authorized a $5B buyback (including $2B accelerated), which is supportive for EPS and signals management confidence. Buyback
• Positive Sentiment: Strong AI product traction and partnerships (Anthropic, OpenAI integrations) underpin longer-term growth potential and enterprise adoption. AI Partnerships
• Neutral Sentiment: Analyst reactions are mixed: several firms (DA Davidson, Cantor, BTIG, Needham) reiterated/maintained buy or overweight ratings and raised/kept targets, while others cut targets or downgraded — leaving a wide range of price targets and sentiment dispersion. Analyst Notes
• Neutral Sentiment: Unusually large options volume was reported, indicating speculative/moderately aggressive trading that can amplify intraday moves (uncertain directional implication). Options Activity
• Negative Sentiment: Guidance signaled a slowdown: management forecast subscription growth for FY26 that implies deceleration from 2025 levels — investors viewed this as a notable deceleration risk. Guidance/Slowdown
• Negative Sentiment: Broader sector and AI disruption fears triggered a sell-off in software names; commentary highlighted multiple compression and concerns competition from new AI entrants could hurt growth/valuation. Sector/AI Fears
• Negative Sentiment: Some firms cut price targets sharply (KeyCorp to $115, Macquarie to $140), reflecting concern over valuation and near‑term execution — that contributed to downward pressure. Price Target Cuts

Wall Street Analyst Weigh In

A number of analysts have weighed in on the stock. Morgan Stanley set a $263.00 price objective on shares of ServiceNow and gave the company an “overweight” rating in a research note on Thursday, October 30th. Wall Street Zen raised ServiceNow from a “hold” rating to a “buy” rating in a research report on Saturday, December 27th. TD Cowen reiterated a “buy” rating on shares of ServiceNow in a research note on Tuesday, January 20th. DZ Bank raised ServiceNow to a “strong-buy” rating in a report on Thursday, December 18th. Finally, Evercore ISI reiterated an “outperform” rating and issued a $175.00 price objective (down from $225.00) on shares of ServiceNow in a report on Thursday. Two analysts have rated the stock with a Strong Buy rating, thirty-two have issued a Buy rating, six have assigned a Hold rating and two have given a Sell rating to the stock. Based on data from MarketBeat.com, ServiceNow has a consensus rating of “Moderate Buy” and an average target price of $194.84.

ServiceNow Stock Performance

The business’s fifty day moving average is $149.79 and its 200-day moving average is $170.88. The company has a quick ratio of 1.06, a current ratio of 1.00 and a debt-to-equity ratio of 0.12. The company has a market cap of $121.21 billion, a PE ratio of 69.98, a P/E/G ratio of 2.01 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 earnings per share for the quarter, topping 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 business had revenue of $3.57 billion for the quarter, compared to the consensus estimate of $3.53 billion. During the same period last year, the firm earned $0.73 earnings per share. The company’s quarterly revenue was up 20.7% on a year-over-year basis. As a group, research analysts predict that ServiceNow, Inc. will post 8.93 EPS for the current fiscal year.

Insiders Place Their Bets

In other ServiceNow news, Director Lawrence Jackson sold 1,325 shares of ServiceNow stock in a transaction that occurred on Friday, November 28th. The shares were sold at an average price of $162.04, for a total transaction of $214,708.30. Following the transaction, the director owned 1,615 shares of the company’s stock, valued at $261,701.06. The trade was a 45.07% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, Director Paul Edward Chamberlain sold 1,500 shares of the stock in a transaction 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 ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last 90 days, insiders have sold 15,310 shares of company stock valued at $2,533,585. 0.34% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Several hedge funds have recently bought and sold shares of NOW. Sigma Planning Corp lifted its position in shares of ServiceNow by 330.3% in the fourth quarter. Sigma Planning Corp now owns 16,071 shares of the information technology services provider’s stock valued at $2,657,000 after acquiring an additional 12,336 shares in the last quarter. Cullinan Associates Inc. raised its stake in ServiceNow by 400.0% during the 4th quarter. Cullinan Associates Inc. now owns 9,000 shares of the information technology services provider’s stock valued at $1,379,000 after purchasing an additional 7,200 shares during the period. Citizens Financial Group Inc. RI boosted its stake in ServiceNow by 537.6% in the 4th quarter. Citizens Financial Group Inc. RI now owns 72,972 shares of the information technology services provider’s stock worth $11,179,000 after purchasing an additional 61,527 shares during the period. New York State Teachers Retirement System boosted its stake in ServiceNow by 381.1% in the 4th quarter. New York State Teachers Retirement System now owns 830,539 shares of the information technology services provider’s stock worth $127,230,000 after purchasing an additional 657,892 shares during the period. Finally, Activest Wealth Management grew its holdings in ServiceNow by 921.7% during the 4th quarter. Activest Wealth Management now owns 470 shares of the information technology services provider’s stock valued at $72,000 after buying an additional 424 shares in the last quarter. Institutional investors own 87.18% of the company’s stock.

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.