ServiceNow (NYSE:NOW) Stock Price Down 5.4% – Time to Sell?

Shares of ServiceNow, Inc. (NYSE:NOW) fell 5.4% during mid-day trading on Wednesday . The company traded as low as $99.42 and last traded at $100.7620. 25,908,210 shares traded hands during trading, an increase of 30% from the average session volume of 19,856,166 shares. The stock had previously closed at $106.48.

ServiceNow News Roundup

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: High-profile bulls are staying long. Dan Ives reiterated conviction in ServiceNow as one of the “software Armageddon” winners, signaling continued institutional interest from influential analysts. Dan Ives Can’t Get Enough of These 2 Software Stocks Despite ‘Armageddon’ Worries
• Positive Sentiment: Product momentum and AI monetization are accelerating: Now Assist, Raptor and other AI features are driving large enterprise wins and rapidly growing ACV, supporting durable revenue expansion if adoption continues. ServiceNow’s Product Expansion Gains Pace: More Growth Ahead?
• Positive Sentiment: Capital returns and institutional buying provide support: management authorized another large buyback (~$5B noted in recent coverage) and institutions have been accumulating, which gives upside if sentiment stabilizes. AI Disruption Overblown! 4 Software Stocks to Buy on the Dip
• Neutral Sentiment: Short-interest dynamics could create near-term volatility: heavy short positions raise the chance of a short squeeze and technical rallies, but that’s uncertain and not a replacement for fundamental improvement. Software Stocks Look Primed for a Short Squeeze
• Neutral Sentiment: Management bench strengthened: ServiceNow named Danielle Fontaine Chief Accounting Officer, which is a routine governance/continuity positive but unlikely to move fundamentals by itself. ServiceNow Strengthens Finance Leadership With New Accounting Chief
• Negative Sentiment: AI disruption fears and business-model risk remain the core headwind: analysts point out that AI could reduce seat growth (ServiceNow’s historical revenue driver) and that consumption-based AI economics add margin variability — key reasons for the recent, sharp sell-off. ServiceNow’s Massive Fall: Analysts Eye +70% Gains Amid AI Risks

Wall Street Analyst Weigh In

Several equities analysts have weighed in on NOW shares. Capital One Financial lowered their price objective on shares of ServiceNow from $188.00 to $161.00 and set an “overweight” rating on the stock in a research report on Friday, January 16th. HSBC lowered their price target on ServiceNow from $266.40 to $226.00 and set a “buy” rating on the stock in a report on Friday, January 30th. Canaccord Genuity Group set a $200.00 price objective on ServiceNow in a research note on Thursday, January 29th. Wall Street Zen upgraded ServiceNow from a “hold” rating to a “buy” rating in a research report on Saturday, December 27th. Finally, Guggenheim raised ServiceNow from a “sell” rating to a “neutral” rating in a research note on Tuesday, December 16th. Three equities research analysts have rated the stock with a Strong Buy rating, thirty-three have assigned a Buy rating, six have given a Hold rating and two have assigned a Sell rating to the company. According to MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus target price of $193.01.

ServiceNow Price Performance

The stock has a 50 day moving average price of $142.02 and a two-hundred day moving average price of $166.34. The company has a debt-to-equity ratio of 0.12, a quick ratio of 1.00 and a current ratio of 1.00. The company has a market capitalization of $105.40 billion, a PE ratio of 60.41, a P/E/G ratio of 1.76 and a beta of 0.98.

ServiceNow (NYSE:NOW) last announced its quarterly 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 business had revenue of $3.57 billion during 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 firm’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. Equities analysts forecast that ServiceNow, Inc. will post 8.93 earnings per share for the current year.

Insider Activity at ServiceNow

In other ServiceNow news, Director Paul Edward Chamberlain sold 1,500 shares of the stock in a transaction on Friday, November 28th. The shares were sold at an average price of $161.60, for a total transaction of $242,400.00. Following the transaction, the director directly owned 47,930 shares of the company’s stock, valued at $7,745,488. This represents a 3.03% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. Also, insider Paul Fipps sold 1,525 shares of the firm’s stock in a transaction dated Tuesday, November 18th. The shares were sold at an average price of $163.51, for a total value of $249,352.75. Following the transaction, the insider owned 2,705 shares in the company, valued at approximately $442,294.55. This trade represents a 36.05% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 15,310 shares of company stock worth $2,533,585 over the last quarter. 0.34% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in NOW. Brady Martz Wealth Solutions LLC grew its holdings in ServiceNow by 1.3% during the third quarter. Brady Martz Wealth Solutions LLC now owns 842 shares of the information technology services provider’s stock valued at $775,000 after purchasing an additional 11 shares during the last quarter. Magnus Financial Group LLC boosted its holdings in shares of ServiceNow by 1.9% during the 3rd quarter. Magnus Financial Group LLC now owns 589 shares of the information technology services provider’s stock worth $542,000 after buying an additional 11 shares during the period. Avidian Wealth Enterprises LLC boosted its holdings in shares of ServiceNow by 2.5% during the 3rd quarter. Avidian Wealth Enterprises LLC now owns 453 shares of the information technology services provider’s stock worth $417,000 after buying an additional 11 shares during the period. Bay Colony Advisory Group Inc d b a Bay Colony Advisors boosted its holdings in ServiceNow by 2.1% during the second quarter. Bay Colony Advisory Group Inc d b a Bay Colony Advisors now owns 575 shares of the information technology services provider’s stock valued at $591,000 after acquiring an additional 12 shares during the period. Finally, Traveka Wealth LLC lifted its position in shares of ServiceNow by 3.8% during the 3rd quarter. Traveka Wealth LLC now owns 330 shares of the information technology services provider’s stock worth $304,000 after purchasing an additional 12 shares during the last quarter. Institutional investors and hedge funds own 87.18% of the company’s stock.

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.