ServiceNow (NYSE:NOW) Trading Down 2.1% – What’s Next?

ServiceNow, Inc. (NYSE:NOW)’s stock price was down 2.1% on Tuesday . The stock traded as low as $98.72 and last traded at $99.99. Approximately 23,144,634 shares were traded during trading, an increase of 3% from the average daily volume of 22,456,352 shares. The stock had previously closed at $102.13.

Trending Headlines about ServiceNow

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: ServiceNow extended gains as investors viewed the stock as deeply undervalued versus GuruFocus’s GF Value estimate, reinforcing bullish sentiment around the name. A Look at ServiceNow Inc (NOW) After 6.5% Gain — GF Value $225.42 vs Price $108.73
• Positive Sentiment: Wipro announced a deeper partnership with ServiceNow to automate enterprise workflows and embed agentic AI capabilities, which could support longer-term platform adoption and AI revenue opportunities. Wipro and ServiceNow deepen AI partnership to automate enterprise workflows
• Positive Sentiment: Analyst commentary highlighted ServiceNow’s Q1 results as a sign of resilience, with revenue growth around 22% and earnings meeting expectations, while institutional buying and elevated analyst targets continue to support the stock. ServiceNow (NOW) Stock Analysis: Evaluating the Investment Opportunity
• Neutral Sentiment: Unusually heavy call-option activity suggests traders are positioning for further upside, but it may also reflect short-term speculation rather than fundamental conviction.
• Neutral Sentiment: Several articles focused on ServiceNow’s presentation at a software and AI conference and on broader automation-software comparisons, which appear more informational than immediately market-moving.
• Negative Sentiment: Some coverage flagged rising AI competition and questioned whether ServiceNow can sustain growth, a reminder that investors are still watching how effectively the company defends its AI and enterprise software positioning. Can ServiceNow Sustain Its Growth Amid Rising AI Competition?

Analysts Set New Price Targets

Several equities analysts have recently weighed in on NOW shares. Bank of America began coverage on shares of ServiceNow in a report on Monday, May 18th. They set a “buy” rating and a $130.00 target price for the company. HSBC cut their price target on shares of ServiceNow from $226.00 to $171.00 and set a “buy” rating for the company in a report on Thursday, April 16th. Wolfe Research set a $125.00 price target on shares of ServiceNow in a report on Thursday, April 23rd. Argus cut their price target on shares of ServiceNow from $180.00 to $134.00 and set a “buy” rating for the company in a report on Friday, April 24th. Finally, Raymond James Financial cut their price target on shares of ServiceNow from $160.00 to $130.00 and set an “outperform” rating for the company in a report on Thursday, April 23rd. Two equities research analysts have rated the stock with a Strong Buy rating, thirty-five have assigned a Buy rating, five have given a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus price target of $141.85.

ServiceNow Stock Performance

The company has a market cap of $111.95 billion, a PE ratio of 64.71, a price-to-earnings-growth ratio of 1.69 and a beta of 0.82. The firm’s fifty day moving average is $97.84 and its 200 day moving average is $123.73. The company has a current ratio of 0.84, a quick ratio of 0.84 and a debt-to-equity ratio of 0.13.

ServiceNow (NYSE:NOW) last announced its earnings results on Wednesday, April 22nd. The information technology services provider reported $0.97 earnings per share (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 company had revenue of $3.77 billion for the quarter, compared to analysts’ expectations of $3.75 billion. During the same quarter in the previous year, the company posted $0.81 EPS. The firm’s quarterly revenue was up 22.1% on a year-over-year basis. As a group, research analysts predict that ServiceNow, Inc. will post 2.35 EPS for the current fiscal year.

Insider Buying and Selling at ServiceNow

In other ServiceNow news, Director Paul Edward Chamberlain sold 1,500 shares of ServiceNow stock in a transaction on Thursday, May 14th. The shares were sold at an average price of $87.23, for a total transaction of $130,845.00. Following the sale, the director owned 44,930 shares of the company’s stock, valued at $3,919,243.90. The trade was a 3.23% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Paul Fipps sold 1,048 shares of ServiceNow stock in a transaction on Monday, May 18th. The stock was sold at an average price of $98.51, for a total transaction of $103,238.48. Following the sale, the insider directly owned 12,072 shares in the company, valued at approximately $1,189,212.72. This trade represents a 7.99% decrease in their position. The SEC filing for this sale provides additional information. 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. In the last 90 days, insiders sold 28,071 shares of company stock worth $2,529,956. Company insiders own 0.34% of the company’s stock.

Institutional Investors Weigh In On ServiceNow

Several institutional investors and hedge funds have recently added to or reduced their stakes in the business. Maripau Wealth Management LLC boosted its position in shares of ServiceNow by 26.4% during the 1st quarter. Maripau Wealth Management LLC now owns 3,420 shares of the information technology services provider’s stock valued at $358,000 after acquiring an additional 715 shares during the last quarter. Westshore Wealth LLC boosted its position in shares of ServiceNow by 0.8% during the 1st quarter. Westshore Wealth LLC now owns 16,233 shares of the information technology services provider’s stock valued at $1,697,000 after acquiring an additional 128 shares during the last quarter. Glenmede Trust Co. NA boosted its position in shares of ServiceNow by 232.2% during the 1st quarter. Glenmede Trust Co. NA now owns 426,146 shares of the information technology services provider’s stock valued at $44,554,000 after acquiring an additional 297,879 shares during the last quarter. Summitry LLC acquired a new position in shares of ServiceNow during the 1st quarter valued at about $222,000. Finally, Verus Capital Partners LLC boosted its position in shares of ServiceNow by 27.9% during the 1st quarter. Verus Capital Partners LLC now owns 4,540 shares of the information technology services provider’s stock valued at $475,000 after acquiring an additional 990 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.