ServiceNow (NYSE:NOW) Shares Up 1.3% – Here’s Why

ServiceNow, Inc. (NYSE:NOW) shares were up 1.3% during mid-day trading on Wednesday . The company traded as high as $103.35 and last traded at $103.1320. Approximately 29,731,258 shares changed hands during trading, an increase of 33% from the average daily volume of 22,390,395 shares. The stock had previously closed at $101.83.

ServiceNow News Summary

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: Bank of America restarted coverage on ServiceNow with a Buy rating and a $130 price target, arguing the stock is a beneficiary of the “agentic AI” shift and could serve as a control center for enterprise AI workflows. BofA Reinstates Coverage of ServiceNow, Salesforce. It Says 1 Is an AI Beneficiary.
• Positive Sentiment: Multiple reports said investors are rotating back into enterprise software, with analysts increasingly arguing that AI disruption fears around ServiceNow were overblown and that AI could actually expand demand for its workflow automation products. Wall Street Is Warming Up to ServiceNow Stock. That’s Because It’s Now a Bet on Agentic AI.
• Positive Sentiment: Coverage from TCW and other market commentary reinforced a constructive tone, suggesting institutional investors still see long-term growth potential in ServiceNow despite volatility in software names. TCW Concentrated Large Cap Growth Fund Maintains a Constructive View on ServiceNow (NOW)
• Neutral Sentiment: Broader software-sector strength helped lift sentiment across the group, including ServiceNow, as investors reassessed the risk of AI replacing enterprise software vendors. ServiceNow and Snowflake Stocks Trade Up, What You Need To Know
• Negative Sentiment: Some investors still worry about AI disruption and “SaaSpocalypse” narratives, and there was also recent insider selling disclosed, which can temper enthusiasm even if the sales were planned or tax-related. Insider Selling: ServiceNow (NYSE:NOW) Insider Sells 1,048 Shares of Stock

Wall Street Analyst Weigh In

A number of equities analysts have recently issued reports on NOW shares. Citizens Jmp restated a “market outperform” rating and set a $157.00 target price on shares of ServiceNow in a research report on Tuesday, May 5th. Cantor Fitzgerald lowered their target price on shares of ServiceNow to $122.00 and set an “overweight” rating on the stock in a research report on Thursday, April 23rd. Canaccord Genuity Group lowered their target price on shares of ServiceNow from $200.00 to $145.00 and set a “buy” rating on the stock in a research report on Thursday, April 23rd. Mizuho lowered their target price on shares of ServiceNow from $150.00 to $140.00 and set an “outperform” rating on the stock in a research report on Thursday, April 23rd. Finally, BMO Capital Markets lowered their target price on shares of ServiceNow from $120.00 to $115.00 and set an “outperform” rating on the stock in a research report on Thursday, April 23rd. Two investment analysts have rated the stock with a Strong Buy rating, thirty-three have given a Buy rating, six have issued a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and an average target price of $141.89.

ServiceNow Trading Up 1.3%

The business’s 50-day moving average is $99.72 and its two-hundred day moving average is $127.48. The company has a debt-to-equity ratio of 0.13, a quick ratio of 0.84 and a current ratio of 0.84. The stock has a market capitalization of $106.33 billion, a PE ratio of 61.46, a price-to-earnings-growth ratio of 1.76 and a beta of 0.82.

ServiceNow (NYSE:NOW) last posted its quarterly earnings data on Wednesday, April 22nd. The information technology services provider reported $0.97 earnings per share for the quarter, meeting analysts’ consensus estimates of $0.97. ServiceNow had a net margin of 12.59% and a return on equity of 18.16%. The firm had revenue of $3.77 billion for the quarter, compared to analyst estimates of $3.75 billion. During the same period last year, the firm posted $0.81 EPS. ServiceNow’s quarterly revenue was up 22.1% on a year-over-year basis. As a group, equities research analysts anticipate that ServiceNow, Inc. will post 2.35 earnings per share for the current year.

Insider Activity at ServiceNow

In other ServiceNow news, insider Paul Fipps sold 1,048 shares of the business’s stock in a transaction on Monday, May 18th. The shares were sold at an average price of $98.51, for a total transaction of $103,238.48. Following the sale, the insider directly owned 12,072 shares in the company, valued at approximately $1,189,212.72. The trade was a 7.99% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Director Anita M. Sands sold 16,445 shares of the business’s stock in a transaction on Thursday, May 14th. The stock was sold at an average price of $90.14, for a total transaction of $1,482,352.30. Following the sale, the director owned 30,090 shares in the company, valued at $2,712,312.60. The trade was a 35.34% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 31,767 shares of company stock valued at $2,906,098 over the last 90 days. Company insiders own 0.34% of the company’s stock.

Institutional Investors Weigh In On ServiceNow

Several institutional investors have recently made changes to their positions in NOW. World Investment Advisors grew its holdings in ServiceNow by 411.7% in the 4th quarter. World Investment Advisors now owns 47,955 shares of the information technology services provider’s stock valued at $7,346,000 after buying an additional 38,583 shares during the period. Cohen Klingenstein LLC grew its holdings in ServiceNow by 400.0% in the 4th quarter. Cohen Klingenstein LLC now owns 10,000 shares of the information technology services provider’s stock valued at $1,532,000 after buying an additional 8,000 shares during the period. Sumitomo Mitsui Trust Group Inc. grew its holdings in ServiceNow by 385.9% in the 4th quarter. Sumitomo Mitsui Trust Group Inc. now owns 2,599,397 shares of the information technology services provider’s stock valued at $398,202,000 after buying an additional 2,064,440 shares during the period. Torray Investment Partners LLC grew its holdings in ServiceNow by 390.5% in the 4th quarter. Torray Investment Partners LLC now owns 40,629 shares of the information technology services provider’s stock valued at $6,224,000 after buying an additional 32,345 shares during the period. Finally, Jennison Associates LLC grew its holdings in ServiceNow by 280.1% in the 4th quarter. Jennison Associates LLC now owns 8,432,389 shares of the information technology services provider’s stock valued at $1,291,758,000 after buying an additional 6,213,762 shares during the period. 87.18% of the stock is currently owned by hedge funds and other institutional investors.

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.