ServiceNow (NYSE:NOW) Reaches New 12-Month Low – Should You Sell?

ServiceNow, Inc. (NYSE:NOW)’s stock price reached a new 52-week low during mid-day trading on Tuesday . The company traded as low as $98.00 and last traded at $104.01, with a volume of 23079769 shares. The stock had previously closed at $100.74.

Key ServiceNow News

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: Goldman Sachs highlights “robust expansion opportunities in new domains,” signaling analyst confidence that ServiceNow can monetize beyond ITSM into broader AI-enabled enterprise workflows. Goldman Sachs Likes ServiceNow’s (NOW) “Robust Expansion Opportunities in New Domains”
• Positive Sentiment: Bullish fund manager commentary (Dan Ives) names ServiceNow among “software Armageddon” winners — a vote of confidence that can attract momentum buyers and institutional flows. Dan Ives Can’t Get Enough of These 2 Software Stocks Despite ‘Armageddon’ Worries
• Positive Sentiment: Zacks and other outlets flag faster product expansion (Now Assist, Raptor, etc.) and AI-driven wins that support durable revenue growth — reinforcing upside to consensus given recent beat-and-raise dynamics. ServiceNow’s Product Expansion Gains Pace: More Growth Ahead?
• Positive Sentiment: MarketBeat and The Motley Fool pieces argue the AI disruption sell-off is overblown and list NOW among software leaders to buy on a dip — a narrative that supports a value/buy-the-dip trade. AI Disruption Overblown! 4 Software Stocks to Buy on the Dip (NOW)
• Positive Sentiment: ServiceNow named a new Chief Accounting Officer (Danielle Fontaine) — a governance/stability signal that reduces execution risk as the company scales AI and third‑party integrations. ServiceNow Strengthens Finance Leadership With New Accounting Chief
• Positive Sentiment: Startup Bearing raised $4.5M to scale security ops on the ServiceNow AI Platform — evidence of partner/ecosystem adoption that can expand platform stickiness and API/service monetization. Bearing Raises $4.5M Oversubscribed Seed Round to Scale Physical Security Operations on the ServiceNow AI Platform
• Positive Sentiment: CEO/coverage pieces (Fool) paint a long-term vision (ambitious TAM and AI platform leadership), which can support higher multiples if execution continues to match messaging. This AI Stock’s CEO Just Said It’s a $1 Trillion Company in the Making
• Neutral Sentiment: Barron’s notes heavy short interest in software names and the potential for a short squeeze — a near-term technical catalyst but not fundamental improvement; this can amplify moves both ways. Software Stocks Look Primed for a Short Squeeze
• Neutral Sentiment: The Information piece offers a deeper take on risks/nuances investors may be underweight; useful for longer-term positioning but less likely to move price intraday. What Investors Are Missing About ServiceNow

Analyst Ratings Changes

A number of research firms recently commented on NOW. Macquarie Infrastructure dropped their target price on shares of ServiceNow from $172.00 to $140.00 and set a “neutral” rating on the stock in a report on Thursday, January 29th. Capital One Financial reduced their price objective on ServiceNow from $188.00 to $161.00 and set an “overweight” rating for the company in a research note on Friday, January 16th. Wells Fargo & Company set a $225.00 target price on ServiceNow and gave the stock an “overweight” rating in a research report on Thursday, January 8th. Stifel Nicolaus set a $180.00 price target on ServiceNow and gave the stock a “buy” rating in a research note on Thursday, January 29th. Finally, BMO Capital Markets reduced their price objective on shares of ServiceNow from $175.00 to $170.00 and set an “outperform” rating for the company in a research note on Thursday, January 29th. Three equities research analysts have rated the stock with a Strong Buy rating, thirty-three have given a Buy rating, six have given a Hold rating and two have given a Sell rating to the company. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and an average price target of $193.01.

ServiceNow Stock Up 2.7%

The stock has a market capitalization of $108.01 billion, a P/E ratio of 61.91, a PEG ratio of 1.70 and a beta of 0.97. The stock has a 50 day moving average price of $139.41 and a 200-day moving average price of $165.45. The company has a debt-to-equity ratio of 0.12, a current ratio of 1.00 and a quick ratio of 1.00.

ServiceNow (NYSE:NOW) last issued its 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 return on equity of 18.54% and a net margin of 13.16%.The company had revenue of $3.57 billion during the quarter, compared to analysts’ expectations of $3.53 billion. During the same period in the prior year, the business posted $0.73 EPS. ServiceNow’s quarterly revenue was up 20.7% compared to the same quarter last year. As a group, research analysts expect that ServiceNow, Inc. will post 8.93 EPS for the current fiscal year.

Insiders Place Their Bets

In other ServiceNow news, CFO Gina Mastantuono sold 2,075 shares of the business’s stock in a transaction dated Friday, December 5th. The shares were sold at an average price of $170.00, for a total value of $352,750.00. Following the transaction, the chief financial officer owned 61,140 shares in the company, valued at approximately $10,393,800. The trade was a 3.28% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Paul Edward Chamberlain sold 1,500 shares of the stock in a transaction that occurred on Friday, November 28th. The shares were sold at an average price of $161.60, for a total transaction of $242,400.00. Following the sale, the director owned 47,930 shares in the company, valued at approximately $7,745,488. The trade was a 3.03% decrease in their position. The SEC filing for this sale provides additional information. Over the last 90 days, insiders have sold 14,670 shares of company stock worth $2,424,481. 0.34% of the stock is currently owned by insiders.

Institutional Investors Weigh In On ServiceNow

Several institutional investors have recently modified their holdings of the business. Brady Martz Wealth Solutions LLC grew its position in ServiceNow by 1.3% in the 3rd quarter. Brady Martz Wealth Solutions LLC now owns 842 shares of the information technology services provider’s stock worth $775,000 after purchasing an additional 11 shares during the period. Magnus Financial Group LLC increased its position in shares of ServiceNow by 1.9% during the 3rd quarter. Magnus Financial Group LLC now owns 589 shares of the information technology services provider’s stock valued at $542,000 after purchasing an additional 11 shares during the last quarter. Avidian Wealth Enterprises LLC increased its position in shares of ServiceNow by 2.5% during the 3rd quarter. Avidian Wealth Enterprises LLC now owns 453 shares of the information technology services provider’s stock valued at $417,000 after purchasing an additional 11 shares during the last quarter. Bay Colony Advisory Group Inc d b a Bay Colony Advisors lifted its stake in shares of ServiceNow by 2.1% in the 2nd quarter. Bay Colony Advisory Group Inc d b a Bay Colony Advisors now owns 575 shares of the information technology services provider’s stock worth $591,000 after purchasing an additional 12 shares during the period. Finally, Traveka Wealth LLC grew its position in ServiceNow by 3.8% during the third quarter. Traveka Wealth LLC now owns 330 shares of the information technology services provider’s stock valued at $304,000 after buying an additional 12 shares during the period. 87.18% of the stock is owned by hedge funds and other institutional investors.

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.