ServiceNow (NYSE:NOW) Stock Jumps 1.3% – Time to Buy?

Shares of ServiceNow, Inc. (NYSE:NOW) shot up 1.3% on Monday. The company traded as high as $137.90 and last traded at $136.1420. 7,094,521 shares traded hands during mid-day trading, a decline of 68% from the average session volume of 22,062,381 shares. The stock had previously closed at $134.38.

Key Headlines Impacting ServiceNow

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: AI Workflow Factory launch strengthens the growth narrative. ServiceNow introduced AI Workflow Factory and Autonomous Engineer, tools designed to identify automation opportunities and build, operate and extend agentic AI workflows across enterprises. The launch reinforces the company’s strategy of turning AI adoption into recurring workflow and platform revenue. ServiceNow launches AI Workflow Factory
• Positive Sentiment: Analysts raised their expectations. Argus lifted its ServiceNow price target from $134 to $170 and upgraded the stock to Buy. UBS also raised its target after partner discussions indicated stable-to-improving third-quarter demand, with strength in AI and security. UBS increased its estimates for current remaining performance obligations and subscription revenue growth, though it expects a normal rather than outsized guidance beat. Argus raises ServiceNow price target UBS raises ServiceNow price target
• Positive Sentiment: Enterprise adoption examples are adding credibility. Germany’s Bundesliga selected ServiceNow as its Official CRM Partner after implementing Customer Service Management. The league says the platform resolves 89% of fan questions at first contact, offering a tangible example of AI and CRM benefits. ServiceNow is also expanding its AI Workflow Factory initiative in India as companies move from experimentation toward deployment. Bundesliga selects ServiceNow CRM ServiceNow AI Workflow Factory in India
• Neutral Sentiment: President and COO Amit Zavery said enterprise demand for AI-powered software remains strong and that ServiceNow continues to outperform its targets. The comments support management’s outlook but do not provide new financial guidance. ServiceNow COO discusses AI demand
• Negative Sentiment: Some customers remain uncertain about AI-enabled products and ServiceNow’s pricing structure, according to Stifel. The stock also trades at a high earnings multiple, while comparisons with Salesforce suggest NOW offers stronger growth but less attractive cash-flow valuation, potentially limiting upside if AI monetization disappoints.

Analyst Ratings Changes

A number of brokerages recently commented on NOW. JPMorgan Chase & Co. lifted their price objective on ServiceNow from $145.00 to $150.00 and gave the stock an “overweight” rating in a research note on Thursday, July 23rd. Benchmark restated a “buy” rating on shares of ServiceNow in a report on Friday, July 17th. Piper Sandler restated an “overweight” rating and set a $140.00 target price on shares of ServiceNow in a report on Thursday, July 23rd. TD Cowen restated a “buy” rating and set a $140.00 target price on shares of ServiceNow in a research report on Monday, August 17th. Finally, Sanford C. Bernstein reaffirmed an “outperform” rating on shares of ServiceNow in a research note on Wednesday, September 9th. One investment analyst has rated the stock with a Strong Buy rating, thirty-five have assigned a Buy rating, four have issued a Hold rating and two have given a Sell rating to the company’s stock. According to data from MarketBeat.com, ServiceNow presently has a consensus rating of “Moderate Buy” and a consensus target price of $146.46.

ServiceNow Trading Up 1.5%

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 business’s fifty day moving average is $131.24 and its 200 day moving average is $111.77. The firm has a market capitalization of $142.84 billion, a price-to-earnings ratio of 86.34, a price-to-earnings-growth ratio of 2.50 and a beta of 0.99.

ServiceNow (NYSE:NOW) last announced its earnings results on Wednesday, July 22nd. The information technology services provider reported $0.90 earnings per share for the quarter, topping analysts’ consensus estimates of $0.86 by $0.04. ServiceNow had a net margin of 11.34% and a return on equity of 16.45%. The firm had revenue of $3.99 billion during the quarter, compared to analyst estimates of $3.93 billion. During the same period in the prior year, the business earned $0.81 EPS. The company’s revenue for the quarter was up 24.0% compared to the same quarter last year. Equities analysts predict that ServiceNow, Inc. will post 2.22 earnings per share for the current year.

Insider Buying and Selling

In other ServiceNow news, insider Jacqueline P. Canney sold 7,847 shares of the company’s stock in a transaction that occurred on Friday, August 28th. The stock was sold at an average price of $138.00, for a total transaction of $1,082,886.00. Following the completion of the transaction, the insider owned 30,042 shares of the company’s stock, valued at $4,145,796. This represents a 20.71% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Paul Chamberlain sold 2,700 shares of the firm’s stock in a transaction that occurred on Thursday, August 27th. The stock was sold at an average price of $135.50, for a total transaction of $365,850.00. Following the transaction, the director directly owned 43,990 shares of the company’s stock, valued at $5,960,645. This represents a 5.78% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last three months, insiders sold 14,081 shares of company stock worth $1,937,904. 0.34% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Large investors have recently added to or reduced their stakes in the business. Cornerstone Financial Management LLC lifted its position in ServiceNow by 72.8% during the 2nd quarter. Cornerstone Financial Management LLC now owns 254 shares of the information technology services provider’s stock worth $25,000 after buying an additional 107 shares in the last quarter. CrossGen Wealth LLC bought a new position in shares of ServiceNow in the 1st quarter valued at about $29,000. Marquette Asset Management LLC increased its position in shares of ServiceNow by 75.0% in the second quarter. Marquette Asset Management LLC now owns 301 shares of the information technology services provider’s stock valued at $30,000 after acquiring an additional 129 shares during the last quarter. Kilter Group LLC acquired a new stake in shares of ServiceNow in the second quarter valued at about $31,000. Finally, Howard Hughes Medical Institute raised its holdings in ServiceNow by 404.5% during the fourth quarter. Howard Hughes Medical Institute now owns 222 shares of the information technology services provider’s stock worth $34,000 after acquiring an additional 178 shares in the last quarter. Institutional investors and hedge funds own 87.18% of the company’s stock.

ServiceNow Company Profile

ServiceNow, Inc is a cloud-based enterprise software company that helps organizations digitize, automate and manage workflows. Its platform connects people, processes and systems across departments, enabling businesses to replace manual, disconnected activities with standardized digital workflows.

The company’s products and services support a range of functions, including information technology service management, IT operations management, customer service, human resources, risk and security operations, and software development.