ServiceNow (NYSE:NOW) Trading 6.5% Higher on Analyst Upgrade

ServiceNow, Inc. (NYSE:NOW) shares rose 6.5% during mid-day trading on Wednesday after Bank of America raised their price target on the stock from $130.00 to $150.00. Bank of America currently has a buy rating on the stock. ServiceNow traded as high as $129.60 and last traded at $127.2150. Approximately 22,399,707 shares were traded during trading, a decline of 6% from the average daily volume of 23,744,471 shares. The stock had previously closed at $119.49.

NOW has been the topic of a number of other reports. Morgan Stanley set a $180.00 target price on shares of ServiceNow in a research note on Tuesday, July 21st. Evercore reiterated an “outperform” rating and issued a $160.00 target price on shares of ServiceNow in a research report on Thursday, July 23rd. Canaccord Genuity Group reduced their target price on ServiceNow from $200.00 to $145.00 and set a “buy” rating on the stock in a research note on Thursday, April 23rd. Stifel Nicolaus lowered their price target on ServiceNow from $135.00 to $120.00 and set a “buy” rating on the stock in a research report on Thursday, April 23rd. Finally, Citizens Jmp reissued a “market outperform” rating and set a $157.00 price objective on shares of ServiceNow in a report on Tuesday, May 5th. One research analyst has rated the stock with a Strong Buy rating, thirty-six have assigned a Buy rating, two have assigned a Hold rating and three have issued a Sell rating to the stock. Based on data from MarketBeat, the company has an average rating of “Moderate Buy” and an average target price of $144.24.

Insiders Place Their Bets

In other ServiceNow news, Director Paul Edward Chamberlain sold 1,500 shares of the business’s stock in a transaction on Thursday, August 13th. The shares were sold at an average price of $125.60, for a total value of $188,400.00. Following the completion of the sale, the director directly owned 46,690 shares of the company’s stock, valued at $5,864,264. The trade was a 3.11% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 0.34% of the stock is owned by corporate insiders.

ServiceNow News Summary

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: Higher analyst conviction supports the stock. Bank of America’s bullish rating and higher target follow TD Cowen’s reaffirmed Buy rating and reflect optimism about ServiceNow’s recurring-revenue model, AI workflow opportunities and expanding security business. TD Cowen Buy rating
• Positive Sentiment: Armis expands ServiceNow’s cybersecurity opportunity. Coverage of the approximately $8 billion acquisition highlights how the deal could strengthen ServiceNow’s AI-powered security platform and broaden its preventive cyber-defense offerings, potentially supporting long-term growth and cross-selling. ServiceNow Armis acquisition
• Positive Sentiment: Some investors view the software selloff as excessive. Jim Cramer argued that profitable, growing enterprise software companies such as ServiceNow are being valued as if AI will eliminate their business models, rather than merely pressure growth or pricing. Jim Cramer defends software companies
• Neutral Sentiment: New ecosystem partnerships add product momentum. Tribal launched an offering for ServiceNow that enables enterprise teams to build and manage AI agents on the Now Platform, potentially increasing platform usage but with uncertain near-term financial impact. Tribal ServiceNow partnership
• Negative Sentiment: AI-related business-model risks remain. Critics warn that AI could allow companies to accomplish more with fewer employees, potentially challenging per-seat software pricing and subscription growth. The Armis transaction also creates integration and execution risks. AI threat to software business models
• Negative Sentiment: Insider selling is a minor overhang. Director Paul Edward Chamberlain sold 1,500 shares under a pre-arranged Rule 10b5-1 plan. Because the sale was scheduled in advance and reduced his holdings by only 3.11%, it offers limited evidence of deteriorating fundamentals. ServiceNow director stock sale

Institutional Trading of ServiceNow

Hedge funds and other institutional investors have recently bought and sold shares of the stock. Wealth Watch Advisors INC bought a new position in shares of ServiceNow in the third quarter worth approximately $29,000. Kelleher Financial Advisors bought a new stake in ServiceNow during the 3rd quarter valued at $50,000. Pin Oak Investment Advisors Inc. boosted its position in ServiceNow by 20.7% during the 3rd quarter. Pin Oak Investment Advisors Inc. now owns 134 shares of the information technology services provider’s stock valued at $123,000 after buying an additional 23 shares during the period. Jupiter Wealth Management LLC purchased a new stake in ServiceNow during the 2nd quarter valued at $154,000. Finally, CBIZ Investment Advisory Services LLC grew its holdings in ServiceNow by 540.0% in the 4th quarter. CBIZ Investment Advisory Services LLC now owns 160 shares of the information technology services provider’s stock worth $25,000 after acquiring an additional 135 shares during the last quarter. Institutional investors own 87.18% of the company’s stock.

ServiceNow Stock Performance

The business’s fifty day simple moving average is $107.40 and its 200-day simple moving average is $105.41. The firm has a market cap of $131.54 billion, a P/E ratio of 79.51, a price-to-earnings-growth ratio of 2.18 and a beta of 0.94. The company has a current ratio of 0.70, a quick ratio of 0.70 and a debt-to-equity ratio of 0.43.

ServiceNow (NYSE:NOW) last issued its quarterly earnings data on Wednesday, July 22nd. The information technology services provider reported $0.90 EPS for the quarter, beating the consensus estimate of $0.86 by $0.04. The firm had revenue of $3.99 billion during the quarter, compared to the consensus estimate of $3.93 billion. ServiceNow had a net margin of 11.34% and a return on equity of 16.45%. The company’s quarterly revenue was up 24.0% compared to the same quarter last year. During the same period in the prior year, the firm posted $0.81 earnings per share. As a group, sell-side analysts expect that ServiceNow, Inc. will post 2.24 earnings per share for the current year.

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.