ServiceNow (NYSE:NOW) Trading Down 2.6% – Time to Sell?

Shares of ServiceNow, Inc. (NYSE:NOW) were down 2.6% on Tuesday . The company traded as low as $101.20 and last traded at $101.4490. 17,039,760 shares traded hands during mid-day trading, a decline of 29% from the average session volume of 23,959,475 shares. The stock had previously closed at $104.15.

Key Headlines Impacting ServiceNow

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: ServiceNow expanded its agentic AI ecosystem through new partnerships with Wipro, Digimarc, and HPE, signaling broader enterprise adoption and more practical use cases for its AI workflow platform. ServiceNow (NOW) Expands Agentic AI With Wipro Digimarc And HPE Partnerships
• Positive Sentiment: Cognizant announced interoperability between its multi-agent accelerator and ServiceNow AI Agents, reinforcing ServiceNow’s role as a central orchestrator in enterprise AI deployments. Cognizant expands cross-platform agentic AI with new ServiceNow AI Agent interoperability
• Positive Sentiment: The Hackett Group joined the ServiceNow Partner Program to help customers accelerate ROI-based AI transformation, which could help drive more implementations and long-term platform growth. The Hackett Group® Partners with ServiceNow to Help Enterprises Accelerate ROI-based AI Transformation
• Positive Sentiment: Several articles highlighted ServiceNow as a top generative AI software stock, backed by strong analyst coverage and an average price target implying meaningful upside from recent levels. Why is ServiceNow (NOW) the Best Generative AI Software Stock to Buy in June
• Neutral Sentiment: ServiceNow was featured in commentary arguing that AI and software need to “fuse together” to improve how companies operate, which adds to the bull case but is more thematic than immediately financial. ServiceNow: AI and software must fuse together to better run companies
• Neutral Sentiment: Zacks highlighted ServiceNow’s AI Control Tower as a potential growth engine as companies look for governance tools to manage more AI deployments; this is supportive, but still early-stage. Can AI Control Tower Become ServiceNow’s Next Growth Engine?

Wall Street Analyst Weigh In

Several equities analysts have recently issued reports on the company. FBN Securities decreased their price target on ServiceNow from $160.00 to $120.00 in a research note on Thursday, April 23rd. Argus reduced their price objective on ServiceNow from $180.00 to $134.00 and set a “buy” rating on the stock in a research note on Friday, April 24th. Piper Sandler decreased their target price on ServiceNow from $200.00 to $140.00 and set an “overweight” rating on the stock in a research report on Thursday, April 23rd. Capital One Financial boosted their target price on ServiceNow from $105.00 to $120.00 and gave the stock an “overweight” rating in a research note on Tuesday, May 5th. Finally, Wolfe Research set a $125.00 target price on shares of ServiceNow in a report on Thursday, April 23rd. One research analyst has rated the stock with a Strong Buy rating, thirty-five have issued a Buy rating, five have issued a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, ServiceNow currently has a consensus rating of “Moderate Buy” and a consensus price target of $142.17.

ServiceNow Stock Performance

The company has a market cap of $98.47 billion, a price-to-earnings ratio of 56.92, a P/E/G ratio of 1.67 and a beta of 0.94. 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 company has a fifty day moving average of $99.69 and a two-hundred day moving average of $118.44.

ServiceNow (NYSE:NOW) last issued its earnings results on Wednesday, April 22nd. The information technology services provider reported $0.97 earnings per share (EPS) for the quarter, hitting analysts’ consensus estimates of $0.97. ServiceNow had a return on equity of 18.16% and a net margin of 12.59%.The business had revenue of $3.77 billion during the quarter, compared to analysts’ expectations of $3.75 billion. During the same quarter in the prior year, the firm earned $0.81 EPS. The business’s revenue for the quarter was up 22.1% compared to the same quarter last year. Equities research analysts anticipate that ServiceNow, Inc. will post 2.35 EPS for the current year.

Insider Transactions at ServiceNow

In related news, Director Paul Edward Chamberlain sold 1,500 shares of the firm’s stock in a transaction that occurred on Thursday, May 14th. The shares were sold at an average price of $87.23, for a total value of $130,845.00. Following the completion of the transaction, the director owned 44,930 shares in the company, valued at $3,919,243.90. This trade represents a 3.23% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Anita M. Sands sold 16,445 shares of ServiceNow stock in a transaction that occurred 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 approximately $2,712,312.60. This represents a 35.34% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last ninety days, insiders sold 28,071 shares of company stock worth $2,529,956. 0.34% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On ServiceNow

A number of hedge funds have recently modified their holdings of the business. Vanguard Group Inc. grew its position in shares of 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 buying an additional 81,752,460 shares during the last quarter. State Street Corp raised its position in shares of ServiceNow by 406.6% during the fourth quarter. State Street Corp now owns 47,896,597 shares of the information technology services provider’s stock worth $7,337,280,000 after acquiring an additional 38,441,898 shares during the last quarter. Price T Rowe Associates Inc. MD lifted its stake in shares of ServiceNow by 371.0% in the fourth quarter. Price T Rowe Associates Inc. MD now owns 32,395,663 shares of the information technology services provider’s stock worth $4,962,692,000 after acquiring an additional 25,517,218 shares during the period. Geode Capital Management LLC lifted its stake in shares of 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 acquiring an additional 18,854,775 shares during the period. Finally, Morgan Stanley boosted its holdings in ServiceNow by 335.6% in the fourth quarter. Morgan Stanley now owns 22,733,483 shares of the information technology services provider’s stock valued at $3,482,543,000 after acquiring an additional 17,514,679 shares during the last quarter. Institutional investors and hedge funds own 87.18% of the company’s stock.

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.