ServiceNow (NYSE:NOW) Shares Down 4.6% – Here’s What Happened

Shares of ServiceNow, Inc. (NYSE:NOW) dropped 4.6% during mid-day trading on Friday. The company traded as low as $139.94 and last traded at $141.7360. Approximately 15,454,637 shares changed hands during mid-day trading, a decline of 28% from the average daily volume of 21,595,588 shares. The stock had previously closed at $148.57.

ServiceNow News Summary

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: Higher analyst price target: Piper Sandler raised its target for ServiceNow from $140 to $175 and maintained an “overweight” rating, citing potential upside from the company’s growth outlook.
• Positive Sentiment: AI product expansion: ServiceNow introduced the third generation of EmployeeWorks, enabling employees to build AI agents without coding. It also launched an Nvidia-backed “AI Passport” designed to govern agent permissions, business context and emergency controls. These products could support adoption of ServiceNow’s AI platform among enterprise customers. ServiceNow Stock Trending: Employees Build AI Agents with Nvidia Oversight
• Positive Sentiment: Supportive growth outlook: TD Cowen recently lifted its ServiceNow price target from $140 to $165 and reiterated a Buy rating, pointing to customer upgrades, security-product growth and demand from U.S. federal agencies as potential third-quarter drivers. ServiceNow stock rises as investors rotate to enterprise software stocks
• Neutral Sentiment: An investor letter from Emerald Wealth Partners argued that ServiceNow’s deep integration into enterprise systems could help protect its competitive position as AI adoption expands. How Deep System Roots Protect ServiceNow in AI Era
• Negative Sentiment: Sector-wide risk-off trading: Enterprise software stocks, including ServiceNow, Palantir and Salesforce, came under pressure as concerns spread that heavily financed AI investments may be difficult to sustain. This broader de-risking is currently dominating the stock-specific AI announcements. Enterprise Software Stocks Fall as AI Financing Worries Spread

Analyst Upgrades and Downgrades

Several equities research analysts have commented on NOW shares. Evercore restated an “outperform” rating on shares of ServiceNow in a research note on Tuesday. Jefferies Financial Group reissued a “buy” rating on shares of ServiceNow in a report on Tuesday. BMO Capital Markets raised their target price on ServiceNow from $115.00 to $118.00 and gave the company an “outperform” rating in a research report on Thursday, July 23rd. Piper Sandler raised their target price on ServiceNow from $140.00 to $175.00 and gave the company an “overweight” rating in a research report on Friday. Finally, Cantor Fitzgerald lifted their target price on ServiceNow from $141.00 to $174.00 and gave the company an “overweight” rating in a research note on Monday, September 21st. One analyst has rated the stock with a Strong Buy rating, thirty-five have given a Buy rating, four have given a Hold rating and two have issued a Sell rating to the company. According to data from MarketBeat, ServiceNow currently has a consensus rating of “Moderate Buy” and a consensus target price of $151.73.

ServiceNow Stock Performance

The stock has a market cap of $146.56 billion, a P/E ratio of 88.58, a PEG ratio of 2.57 and a beta of 0.99. The company has a fifty day moving average of $134.87 and a 200 day moving average of $113.47. The company has a debt-to-equity ratio of 0.43, a current ratio of 0.70 and a quick ratio of 0.70.

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

Insider Transactions at ServiceNow

In related news, insider Jacqueline P. Canney sold 7,847 shares of the firm’s stock in a transaction dated 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 trade represents a 20.71% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Paul Fipps sold 2,034 shares of the firm’s stock in a transaction dated Monday, August 31st. The shares were sold at an average price of $147.87, for a total value of $300,767.58. Following the transaction, the insider directly owned 18,305 shares of the company’s stock, valued at $2,706,760.35. This represents a 10.00% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last 90 days, insiders have sold 14,081 shares of company stock valued at $1,937,904. Corporate insiders own 0.34% of the company’s stock.

Institutional Investors Weigh In On ServiceNow

Several hedge funds and other institutional investors have recently bought and sold shares of the business. Banque Pictet & Cie SA acquired a new stake in ServiceNow in the 3rd quarter valued at about $1,333,000. James T. Borello RIA acquired a new position in shares of ServiceNow in the 3rd quarter worth approximately $56,000. Fortitude Advisory Group L.L.C. bought a new stake in shares of ServiceNow in the 3rd quarter worth approximately $340,000. Perpetual Ltd raised its holdings in shares of ServiceNow by 12.3% in the 3rd quarter. Perpetual Ltd now owns 6,215 shares of the information technology services provider’s stock worth $833,000 after purchasing an additional 682 shares in the last quarter. Finally, Moody National Bank Trust Division lifted its stake in ServiceNow by 3.9% during the third quarter. Moody National Bank Trust Division now owns 13,038 shares of the information technology services provider’s stock valued at $1,747,000 after purchasing an additional 484 shares during the last quarter. 87.18% of the stock is currently owned by institutional investors.

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.