ServiceNow (NYSE:NOW) Shares Gap Up – Here’s What Happened

ServiceNow, Inc. (NYSE:NOW)’s stock price gapped up prior to trading on Tuesday . The stock had previously closed at $103.42, but opened at $110.14. ServiceNow shares last traded at $107.4280, with a volume of 14,794,498 shares trading hands.

Key Stories Impacting ServiceNow

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: Bank of America reinstated coverage with a Buy rating and $130 price target, calling ServiceNow a likely winner from enterprise AI adoption. BofA Reinstates Coverage of ServiceNow, Salesforce. It Says 1 Is an AI Beneficiary.
• Positive Sentiment: ServiceNow’s partnership with Experian to embed data and decisioning tools into its AI platform is seen as strengthening its enterprise workflow moat and supporting autonomous AI agents. ServiceNow (NOW) Partners With Experian to Power Autonomous AI Agents With Trusted Data
• Positive Sentiment: Market commentary says software stocks are rebounding after AI disruption fears were overdone, and ServiceNow is one of the leaders in that sector-wide recovery. ServiceNow’s stock heads for best day in a year — flashing a green light for the software sector
• Neutral Sentiment: Some investors are also noting insider selling, but the latest sale was tied to a pre-arranged trading plan and tax withholding, which limits its significance. Insider Selling: ServiceNow (NYSE:NOW) Insider Sells 1,048 Shares of Stock
• Negative Sentiment: Despite the rebound, some reports still point to lingering AI-disruption and “SaaSpocalypse” concerns, suggesting the stock may remain volatile if the sector rally fades. ServiceNow stock flashes a death cross amid rising SaaSpocalypse concerns

Analyst Upgrades and Downgrades

Several research firms recently weighed in on NOW. Cantor Fitzgerald reduced their target price on shares of ServiceNow to $122.00 and set an “overweight” rating for the company in a research note on Thursday, April 23rd. Stifel Nicolaus reduced their target price on shares of ServiceNow from $135.00 to $120.00 and set a “buy” rating for the company in a research note on Thursday, April 23rd. Canaccord Genuity Group reduced their target price on shares of ServiceNow from $200.00 to $145.00 and set a “buy” rating for the company in a research note on Thursday, April 23rd. Citigroup increased their target price on shares of ServiceNow from $154.00 to $158.00 and gave the company a “buy” rating in a research note on Thursday, April 30th. Finally, The Goldman Sachs Group reduced their target price on shares of ServiceNow from $188.00 to $163.00 and set a “buy” rating for the company in a research note 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 given a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $141.89.

ServiceNow Stock Down 0.4%

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 business has a fifty day simple moving average of $100.18 and a two-hundred day simple moving average of $128.05. The company has a market capitalization of $106.22 billion, a price-to-earnings ratio of 61.59, a P/E/G ratio of 1.61 and a beta of 0.82.

ServiceNow (NYSE:NOW) last released 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. The company had revenue of $3.77 billion for the quarter, compared to the consensus estimate of $3.75 billion. ServiceNow had a return on equity of 18.16% and a net margin of 12.59%.The company’s quarterly revenue was up 22.1% on a year-over-year basis. During the same period in the previous year, the business earned $0.81 earnings per share. Equities analysts expect that ServiceNow, Inc. will post 2.35 EPS for the current year.

Insider Buying and Selling

In other ServiceNow news, 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 directly owned 30,090 shares of the company’s stock, valued at approximately $2,712,312.60. The trade was a 35.34% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, Director Paul Edward Chamberlain sold 1,500 shares of ServiceNow 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 sale, the director directly owned 44,930 shares in the company, valued at $3,919,243.90. The trade was a 3.23% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 41,408 shares of company stock valued at $3,927,369 over the last ninety days. Company insiders own 0.34% of the company’s stock.

Institutional Investors Weigh In On ServiceNow

A number of institutional investors have recently added to or reduced their stakes in NOW. IAG Wealth Partners LLC raised its stake in shares of ServiceNow by 200.0% in the third quarter. IAG Wealth Partners LLC now owns 27 shares of the information technology services provider’s stock valued at $25,000 after acquiring an additional 18 shares during the last quarter. Noble Wealth Management PBC raised its stake in shares of ServiceNow by 400.0% in the fourth quarter. Noble Wealth Management PBC now owns 160 shares of the information technology services provider’s stock valued at $25,000 after acquiring an additional 128 shares during the last quarter. Millstone Evans Group LLC raised its stake in shares of ServiceNow by 400.0% in the fourth quarter. Millstone Evans Group LLC now owns 165 shares of the information technology services provider’s stock valued at $25,000 after acquiring an additional 132 shares during the last quarter. CBIZ Investment Advisory Services LLC raised its stake in shares of ServiceNow by 540.0% in the fourth quarter. CBIZ Investment Advisory Services LLC now owns 160 shares of the information technology services provider’s stock valued at $25,000 after acquiring an additional 135 shares during the last quarter. Finally, Blueline Advisors LLC bought a new position in shares of ServiceNow in the fourth quarter valued at approximately $25,000. 87.18% of the stock is owned by institutional investors and hedge funds.

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.