ServiceNow (NYSE:NOW) Upgraded by CLSA to Moderate Sell Rating

CLSA upgraded shares of ServiceNow (NYSE:NOW) to a moderate sell rating in a research report released on Monday morning,Zacks.com reports.

Several other research firms also recently issued reports on NOW. Weiss Ratings downgraded shares of ServiceNow from a “hold (c-)” rating to a “sell (d+)” rating in a research note on Friday, July 10th. Canaccord Genuity Group reduced their price target on ServiceNow from $200.00 to $145.00 and set a “buy” rating for the company in a report on Thursday, April 23rd. Sanford C. Bernstein reiterated an “outperform” rating on shares of ServiceNow in a research report on Monday, June 29th. Barclays restated an “overweight” rating and set a $134.00 target price (up from $132.00) on shares of ServiceNow in a report on Tuesday, May 5th. Finally, Robert W. Baird reduced their price objective on ServiceNow from $125.00 to $118.00 and set an “outperform” rating on the stock in a research report on Thursday, April 23rd. One equities research analyst has rated the stock with a Strong Buy rating, thirty-five have given a Buy rating, four have given a Hold rating and three have given a Sell rating to the company’s stock. According to data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and a consensus target price of $139.12.

ServiceNow Price Performance

ServiceNow stock opened at $104.90 on Monday. The firm has a market cap of $108.15 billion, a PE ratio of 62.51, a price-to-earnings-growth ratio of 1.73 and a beta of 0.96. ServiceNow has a 52-week low of $81.24 and a 52-week high of $210.20. The company has a quick ratio of 0.84, a current ratio of 0.84 and a debt-to-equity ratio of 0.13. The company’s 50 day moving average is $104.24 and its two-hundred day moving average is $108.92.

ServiceNow (NYSE:NOW) last posted its quarterly earnings results on Wednesday, April 22nd. The information technology services provider reported $0.97 EPS for the quarter, hitting the consensus estimate of $0.97. ServiceNow had a net margin of 12.59% and a return on equity of 18.16%. The business had revenue of $3.77 billion during the quarter, compared to the consensus estimate of $3.75 billion. During the same quarter in the previous year, the firm posted $0.81 earnings per share. The company’s quarterly revenue was up 22.1% compared to the same quarter last year. On average, research analysts expect that ServiceNow will post 2.33 EPS for the current fiscal year.

Insider Buying and Selling at ServiceNow

In related news, insider Paul Fipps sold 1,048 shares of the stock in a transaction that occurred 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 completion of the sale, the insider directly owned 12,072 shares of the company’s stock, valued at $1,189,212.72. This represents a 7.99% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at 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 Paul Edward Chamberlain sold 1,500 shares of the business’s stock in a transaction dated Thursday, May 14th. The stock was sold at an average price of $87.23, for a total value of $130,845.00. Following the sale, the director owned 44,930 shares in the company, valued at approximately $3,919,243.90. The trade was a 3.23% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 28,071 shares of company stock worth $2,529,956 in the last ninety days. 0.34% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently bought and sold shares of the company. Wedge Capital Management L L P NC lifted its position in shares of ServiceNow by 5.4% in the second quarter. Wedge Capital Management L L P NC now owns 2,512 shares of the information technology services provider’s stock worth $249,000 after buying an additional 129 shares during the last quarter. Investors Research Corp increased its position in shares of ServiceNow by 787.2% during the 2nd quarter. Investors Research Corp now owns 7,674 shares of the information technology services provider’s stock worth $762,000 after purchasing an additional 6,809 shares in the last quarter. Tema ETFs LLC boosted its stake in ServiceNow by 10.0% in the second quarter. Tema ETFs LLC now owns 20,679 shares of the information technology services provider’s stock worth $2,053,000 after purchasing an additional 1,885 shares in the last quarter. Canvas Wealth Advisors LLC lifted its position in shares of ServiceNow by 60.7% during the second quarter. Canvas Wealth Advisors LLC now owns 28,524 shares of the information technology services provider’s stock worth $2,832,000 after purchasing an additional 10,773 shares in the last quarter. Finally, Fiduciary Financial Group LLC acquired a new stake in shares of ServiceNow during the 2nd quarter worth approximately $404,000. Hedge funds and other institutional investors own 87.18% of the company’s stock.

Trending Headlines about ServiceNow

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: ServiceNow added new AI-powered integrations with Ciroos and Esri, while Hitachi Digital Services expanded its partnership, reinforcing ServiceNow as a central workflow and data hub across IT, location intelligence, and infrastructure operations. ServiceNow (NOW) Adds Ciroos And Esri To Bring AI And GIS Into Workflows
• Positive Sentiment: Cantor Fitzgerald raised its price target on ServiceNow to $141 from $122 and kept an overweight rating, signaling confidence in upside from current levels. Benzinga report on Cantor Fitzgerald price target raise
• Positive Sentiment: Several articles highlighted the bull case ahead of earnings, arguing ServiceNow’s AI execution and platform breadth could support a long-term turnaround as the company expands beyond IT service management. ServiceNow Could Be a Great Long-Term Buy. Here’s the Bull Case.
• Neutral Sentiment: Investors are waiting for the upcoming earnings report and investor update to confirm whether recent AI integrations are translating into faster growth and stronger enterprise demand. Are ServiceNow’s New AI Integrations Quietly Redefining Its Platform Moat for Investors in NOW?
• Negative Sentiment: CLSA initiated coverage with an Underperform rating and a $72 price target, reflecting skepticism about the company’s valuation and near-term setup. ServiceNow gets bearish call before major earnings test
• Negative Sentiment: A critical ServiceNow code execution flaw is now being actively exploited, which could raise security concerns for customers and create short-term pressure on the stock. Critical ServiceNow code execution flaw now exploited in attacks

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.