ServiceNow (NYSE:NOW) Stock Gets Downgrade from Zacks Research

ServiceNow (NYSE:NOW) was downgraded by analysts at Zacks Research from a “hold” rating to a “strong sell” rating in a report issued on Monday, Zacks reports.

A number of other equities analysts have also commented on NOW. Deutsche Bank Aktiengesellschaft lifted their price target on shares of ServiceNow from $135.00 to $155.00 and gave the company a “buy” rating in a research report on Monday, September 21st. Barclays reiterated an “overweight” rating and set a $160.00 price target (up from $134.00) on shares of ServiceNow in a research report on Tuesday, October 13th. Morgan Stanley set a $180.00 target price on shares of ServiceNow in a research report on Tuesday, July 21st. BMO Capital Markets boosted their target price on ServiceNow from $115.00 to $118.00 and gave the stock an “outperform” rating in a research report on Thursday, July 23rd. Finally, Piper Sandler lifted their target price on ServiceNow from $140.00 to $175.00 and gave the stock an “overweight” rating in a report on Friday, October 16th. One investment analyst has rated the stock with a Strong Buy rating, thirty-six have given a Buy rating, three have issued a Hold rating and three have assigned a Sell rating to the stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and an average target price of $152.71.

ServiceNow Stock Up 3.0%

Shares of ServiceNow stock opened at $149.70 on Monday. The stock’s fifty day moving average is $136.01 and its 200-day moving average is $114.34. ServiceNow has a 12-month low of $81.24 and a 12-month high of $192.97. The company has a quick ratio of 0.70, a current ratio of 0.70 and a debt-to-equity ratio of 0.43. The firm has a market capitalization of $154.79 billion, a PE ratio of 93.56, a price-to-earnings-growth ratio of 2.67 and a beta of 0.99.

ServiceNow (NYSE:NOW) last issued its quarterly earnings results on Wednesday, July 22nd. The information technology services provider reported $0.90 earnings per share for the quarter, beating analysts’ consensus estimates of $0.86 by $0.04. ServiceNow had a return on equity of 16.45% and a net margin of 11.34%. The business had revenue of $3.99 billion for the quarter, compared to the consensus estimate of $3.93 billion. During the same quarter in the previous year, the company posted $0.81 earnings per share. ServiceNow’s revenue for the quarter was up 24.0% compared to the same quarter last year. Equities analysts anticipate that ServiceNow will post 2.22 earnings per share for the current year.

Insider Buying and Selling

In other ServiceNow news, Director Paul Chamberlain sold 2,700 shares of the company’s stock in a transaction on Thursday, August 27th. The shares were sold at an average price of $135.50, for a total value of $365,850.00. Following the transaction, the director directly owned 43,990 shares in the company, valued at $5,960,645. The trade was a 5.78% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Also, insider Jacqueline P. Canney sold 7,847 shares of the stock in a transaction that occurred on Friday, August 28th. The stock was sold at an average price of $138.00, for a total value of $1,082,886.00. Following the transaction, the insider owned 30,042 shares in the company, valued at approximately $4,145,796. This trade represents a 20.71% 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. Over the last 90 days, insiders sold 14,081 shares of company stock worth $1,937,904. Company insiders own 0.34% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently made changes to their positions in the business. Benchmark Financial Wealth Advisors LLC bought a new position in shares of ServiceNow in the 3rd quarter valued at about $243,000. Pinnacle Associates Ltd. bought a new stake in ServiceNow in the third quarter worth about $3,417,000. Cohen Investment Advisors LLC grew its stake in shares of ServiceNow by 2.7% during the third quarter. Cohen Investment Advisors LLC now owns 26,880 shares of the information technology services provider’s stock valued at $3,602,000 after buying an additional 707 shares during the last quarter. Nisa Investment Advisors LLC lifted its stake in shares of ServiceNow by 4.6% during the 3rd quarter. Nisa Investment Advisors LLC now owns 192,271 shares of the information technology services provider’s stock worth $25,766,000 after acquiring an additional 8,477 shares during the last quarter. Finally, Harfst & Associates Inc. purchased a new position in ServiceNow during the 3rd quarter valued at $235,000. Institutional investors and hedge funds own 87.18% of the company’s stock.

Key Stories Impacting ServiceNow

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: Analyst support and upcoming earnings: BMO Capital Markets named ServiceNow a new Top Pick, while Bernstein raised its price target to $266 and Piper Sandler and TD Cowen also lifted targets. Investors are looking for evidence of continued customer upgrades and AI-driven growth in the third-quarter report expected October 28. These 2 software stocks are new Top Picks at BMO
• Positive Sentiment: AI monetization remains the central catalyst: ServiceNow is expanding zero-code AI-agent tools, governance capabilities and workflow automation across IT, human resources, customer service and other enterprise functions. Its recent quarter showed approximately 24% year-over-year revenue growth, supporting the argument that the company can convert AI demand into higher-margin software sales. ServiceNow Orchestrates AI’s Next Act—Can Earnings Deliver?
• Positive Sentiment: Technical momentum is improving: A bullish flag breakout and stronger moving-average structure could support a move through $154, with one forecast identifying a potential path toward $211 if resistance is cleared. ServiceNow Price Forecast: $154 Breakout Could Extend Recovery
• Positive Sentiment: ServiceNow expanded a partnership with Simplify Alpha to develop AI-powered, payer-specific solutions for health insurers, potentially opening another vertical for workflow and automation growth. Simplify Alpha Expands Partnership with ServiceNow
• Neutral Sentiment: ServiceNow was highlighted as a favored name in CNBC’s “Final Trades,” adding visibility among retail and professional investors. CNBC’s Final Trades
• Negative Sentiment: Risks include a premium valuation near 93 times trailing earnings, increased short interest, a current ratio below 1.0 and another round of San Diego sales-job cuts. These factors could limit upside if upcoming results fail to justify elevated expectations. ServiceNow cuts San Diego sales jobs

ServiceNow Company Profile

ServiceNow, Inc provides cloud-based software designed to help organizations digitize, automate and manage enterprise workflows. Its Now Platform connects people, processes and systems across departments, enabling customers to manage work through a centralized technology environment.

The company’s products and services address a range of business needs, including information technology service management, IT operations management, customer service management, human resources service delivery, security operations, risk and compliance, and application development.