ServiceNow (NYSE:NOW) Shares Up 1.6% – Still a Buy?

ServiceNow, Inc. (NYSE:NOW) shot up 1.6% during trading on Tuesday . The company traded as high as $121.84 and last traded at $119.5680. Approximately 17,106,791 shares traded hands during mid-day trading, a decline of 28% from the average session volume of 23,730,746 shares. The stock had previously closed at $117.70.

ServiceNow News Roundup

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: New ServiceNow partnership expands enterprise AI adoption. Tribal launched Tribal for ServiceNow, allowing broader enterprise teams—not only developers—to build and personalize AI agents within the ServiceNow AI Platform. The offering could increase platform usage and strengthen ServiceNow’s position in workflow automation. Tribal Partners with ServiceNow
• Positive Sentiment: Cybersecurity expansion adds another growth opportunity. ServiceNow’s planned $7.75 billion acquisition of Armis would broaden its AI-driven security platform and preventive cyber-defense capabilities. The company also appointed former Armis executive Simon Mouyal as chief marketing officer, highlighting the strategic importance of the security business. ServiceNow Is Spending $7.75 Billion on AI Security
• Positive Sentiment: Analyst confidence remains supportive. TD Cowen reiterated a Buy rating and a $140 price target, citing ServiceNow’s recurring revenue, expanding security platform and AI workflow opportunities. The target remains above the referenced market level. ServiceNow Earns Buy Rating
• Neutral Sentiment: ServiceNow and Atlassian are highlighted in continuous-control monitoring. The collaboration illustrates potential enterprise use cases for ServiceNow in governance, risk and compliance, but the report provided no specific contract or financial impact. Continuous Control Monitoring with ServiceNow and Atlassian
• Neutral Sentiment: A director sold 1,500 shares. Paul Edward Chamberlain sold approximately $188,400 of stock under a pre-arranged Rule 10b5-1 plan. The relatively small transaction provides limited insight into management’s outlook. SEC Insider Filing
• Negative Sentiment: AI could challenge the per-seat software model. Parnassus CIO Todd Ahlsten cautioned that AI may enable companies to accomplish more work with fewer employees, potentially reducing demand for seat-based pricing at ServiceNow and Salesforce. Salesforce and ServiceNow Business Model Warning
• Negative Sentiment: Valuation and sector rotation remain risks. Commentary says NOW still appears expensive despite its sharp decline over the past year, while investors continue rotating from software toward semiconductor and AI-hardware stocks. The Armis acquisition also carries integration and execution risks. ServiceNow Stock Still Looks Expensive

Analyst Ratings Changes

NOW has been the topic of a number of research analyst reports. Piper Sandler reissued an “overweight” rating and issued a $140.00 price target on shares of ServiceNow in a research note on Thursday, July 23rd. TD Cowen restated a “buy” rating and set a $140.00 price target on shares of ServiceNow in a research report on Monday. Morgan Stanley set a $180.00 price objective on ServiceNow in a research note on Tuesday, July 21st. Oppenheimer reaffirmed an “outperform” rating and issued a $140.00 target price (up from $130.00) on shares of ServiceNow in a research report on Wednesday, July 15th. Finally, KeyCorp reissued an “underweight” rating on shares of ServiceNow in a research report on Tuesday, July 21st. One analyst has rated the stock with a Strong Buy rating, thirty-six have issued a Buy rating, two have assigned a Hold rating and three have assigned a Sell rating to the stock. According to data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and an average target price of $143.76.

ServiceNow Price Performance

The stock has a fifty day moving average of $107.15 and a 200-day moving average of $105.49. 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 stock has a market capitalization of $123.63 billion, a price-to-earnings ratio of 74.73, a P/E/G ratio of 2.18 and a beta of 0.94.

ServiceNow (NYSE:NOW) last released its quarterly earnings data 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. The company had revenue of $3.99 billion for the quarter, compared to analysts’ expectations of $3.93 billion. ServiceNow had a net margin of 11.34% and a return on equity of 16.45%. The firm’s revenue for the quarter was up 24.0% on a year-over-year basis. During the same quarter last year, the company earned $0.81 earnings per share. On average, equities research analysts predict that ServiceNow, Inc. will post 2.24 EPS for the current fiscal year.

Insider Activity at ServiceNow

In related news, Director Paul Edward Chamberlain sold 1,500 shares of ServiceNow stock in a transaction on Thursday, August 13th. The shares were sold at an average price of $125.60, for a total transaction of $188,400.00. Following the sale, the director directly owned 46,690 shares in the company, valued at $5,864,264. This trade represents a 3.11% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 0.34% of the stock is owned by company insiders.

Hedge Funds Weigh In On ServiceNow

Several large investors have recently bought and sold shares of NOW. Millstone Evans Group LLC grew its stake in ServiceNow by 400.0% during the 4th quarter. Millstone Evans Group LLC now owns 165 shares of the information technology services provider’s stock worth $25,000 after buying an additional 132 shares during the last quarter. CBIZ Investment Advisory Services LLC boosted its holdings 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 period. Blueline Advisors LLC purchased a new position in shares of ServiceNow during the fourth quarter worth approximately $25,000. Measured Wealth Private Client Group LLC grew its position in shares of ServiceNow by 560.0% during the fourth quarter. Measured Wealth Private Client Group LLC now owns 165 shares of the information technology services provider’s stock worth $25,000 after acquiring an additional 140 shares during the last quarter. Finally, Wealth Watch Advisors INC increased its holdings in shares of ServiceNow by 432.3% in the 4th quarter. Wealth Watch Advisors INC now owns 165 shares of the information technology services provider’s stock valued at $25,000 after acquiring an additional 134 shares during the period. Institutional investors and hedge funds own 87.18% of the company’s stock.

ServiceNow Company Profile

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.