ServiceNow (NYSE:NOW) Stock Price Down 1.2% – Should You Sell?

ServiceNow, Inc. (NYSE:NOW)’s share price was down 1.2% during mid-day trading on Friday . The company traded as low as $104.00 and last traded at $108.02. Approximately 18,449,132 shares traded hands during mid-day trading, a decline of 8% from the average daily volume of 20,089,307 shares. The stock had previously closed at $109.30.

ServiceNow News Summary

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: Company rolled out new AI-driven offerings (Autonomous Workforce and EmployeeWorks) aimed at automating enterprise workflows end‑to‑end — a concrete product roadmap that supports monetization of AI and platform stickiness. Read More.
• Positive Sentiment: ServiceNow says it resolves ~90% of its own IT requests autonomously — a strong proof point for ROI that can be marketed to customers and help drive adoption of paid AI/automation features. Read More.
• Positive Sentiment: Market commentary highlights the stock as deeply oversold with many analysts holding aggressive price targets (some >100% upside), creating a potential rebound narrative if momentum stabilizes. Read More.
• Positive Sentiment: Moveworks-from-ServiceNow achieved FedRAMP Moderate authorization, clearing a federal deployment hurdle and strengthening public‑sector revenue prospects. Read More.
• Neutral Sentiment: Comparisons with GitLab emphasize NOW’s advantage in large‑deal momentum and deep workflow integrations, but the piece is more competitive context than a direct catalyst. Read More.
• Neutral Sentiment: Partnerships (e.g., EY collaboration on “system of experience”) and ecosystem integrations are supportive for long‑term adoption but are incremental near‑term drivers. Read More.
• Negative Sentiment: Short interest jumped ~28% in February (~27.2M shares), signaling increased bearish positioning that can amplify downward pressure and volatility. Read More.
• Negative Sentiment: Insider Paul Fipps sold 3,696 shares (~$376k) on Feb. 23, reducing his holding by ~31% — an action some investors may interpret negatively despite other insider buys. Read More.
• Negative Sentiment: The overarching AI‑risk narrative persists — worries that AI could compress SaaS revenue growth have driven the recent re‑rating and remain a headline risk until execution and large‑deal evidence fully reassure investors. Read More.

Analyst Ratings Changes

A number of research analysts have recently commented on the company. Wall Street Zen raised ServiceNow from a “hold” rating to a “buy” rating in a report on Saturday, December 27th. BNP Paribas Exane decreased their target price on shares of ServiceNow from $186.00 to $120.00 and set a “neutral” rating for the company in a research report on Thursday, January 22nd. DZ Bank upgraded shares of ServiceNow to a “strong-buy” rating in a research report on Thursday, December 18th. BMO Capital Markets reduced their price target 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. Finally, DA Davidson reiterated a “buy” rating and set a $220.00 price objective on shares of ServiceNow in a research note on Thursday, January 29th. Three research 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. According to MarketBeat, the company has an average rating of “Moderate Buy” and a consensus price target of $192.06.

ServiceNow Stock Down 1.2%

The company has a market cap of $112.99 billion, a price-to-earnings ratio of 64.76, a price-to-earnings-growth ratio of 1.76 and a beta of 0.97. The company has a current ratio of 1.00, a quick ratio of 1.00 and a debt-to-equity ratio of 0.12. The firm’s fifty day moving average price is $127.58 and its 200-day moving average price is $159.87.

ServiceNow (NYSE:NOW) last released its earnings results on Wednesday, January 28th. The information technology services provider reported $0.92 EPS for the quarter, beating the consensus estimate of $0.89 by $0.03. The firm had revenue of $3.57 billion for the quarter, compared to analysts’ expectations of $3.53 billion. ServiceNow had a return on equity of 18.54% and a net margin of 13.16%.The business’s quarterly revenue was up 20.7% compared to the same quarter last year. During the same quarter in the previous year, the business posted $0.73 EPS. Sell-side analysts predict that ServiceNow, Inc. will post 8.93 earnings per share for the current year.

Insider Activity

In other news, Director Paul Edward Chamberlain sold 1,500 shares of ServiceNow stock in a transaction on Thursday, February 12th. The shares were sold at an average price of $101.17, for a total transaction of $151,755.00. Following the transaction, the director owned 46,430 shares in the company, valued at approximately $4,697,323.10. The trade was a 3.13% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, insider Paul Fipps sold 3,696 shares of ServiceNow stock in a transaction dated Monday, February 23rd. The stock was sold at an average price of $101.77, for a total value of $376,141.92. Following the transaction, the insider directly owned 8,061 shares in the company, valued at $820,367.97. The trade was a 31.44% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last three months, insiders sold 18,312 shares of company stock worth $2,049,912. 0.34% of the stock is owned by company insiders.

Institutional Investors Weigh In On ServiceNow

Institutional investors have recently modified their holdings of the company. Vanguard Group Inc. grew its stake in ServiceNow by 404.5% in the 4th quarter. Vanguard Group Inc. now owns 101,963,384 shares of the information technology services provider’s stock valued at $15,619,771,000 after purchasing an additional 81,752,460 shares during the period. State Street Corp lifted its stake in ServiceNow by 406.6% in the fourth quarter. State Street Corp now owns 47,896,597 shares of the information technology services provider’s stock valued at $7,337,280,000 after purchasing an additional 38,441,898 shares during the last quarter. Price T Rowe Associates Inc. MD grew its holdings in ServiceNow by 371.0% during the fourth quarter. Price T Rowe Associates Inc. MD now owns 32,395,663 shares of the information technology services provider’s stock valued at $4,962,692,000 after purchasing an additional 25,517,218 shares during the period. Geode Capital Management LLC increased its position in ServiceNow by 404.8% in the fourth quarter. Geode Capital Management LLC now owns 23,512,428 shares of the information technology services provider’s stock worth $3,591,425,000 after buying an additional 18,854,775 shares during the last quarter. Finally, Morgan Stanley lifted its position in shares of ServiceNow by 335.6% during the 4th quarter. Morgan Stanley now owns 22,733,483 shares of the information technology services provider’s stock valued at $3,482,543,000 after buying an additional 17,514,679 shares during the last quarter. 87.18% of the stock is owned by 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.