ServiceNow (NYSE:NOW) Price Target Raised to $176.00

ServiceNow (NYSE:NOW) had its price target raised by Royal Bank Of Canada from $130.00 to $176.00 in a report issued on Monday morning, MarketBeat Ratings reports. The brokerage currently has an outperform rating on the information technology services provider’s stock.

Several other equities research analysts have also recently issued reports on the stock. Evercore reaffirmed an “outperform” rating and set a $160.00 price target on shares of ServiceNow in a research note on Thursday, July 23rd. BTIG Research reissued a “buy” rating and set a $170.00 price target on shares of ServiceNow in a research note on Monday. Benchmark restated a “buy” rating on shares of ServiceNow in a report on Friday, July 17th. Guggenheim upgraded ServiceNow from a “neutral” rating to a “buy” rating and set a $125.00 price objective on the stock in a report on Wednesday, July 1st. Finally, Oppenheimer reaffirmed an “outperform” rating and issued a $140.00 price objective (up from $130.00) on shares of ServiceNow in a research report on Wednesday, July 15th. One research analyst has rated the stock with a Strong Buy rating, thirty-five have assigned a Buy rating, four have assigned a Hold rating and two have given a Sell rating to the company’s stock. According to MarketBeat, the company has an average rating of “Moderate Buy” and an average target price of $149.54.

ServiceNow Trading Up 1.0%

Shares of NOW opened at $139.96 on Monday. The company has a debt-to-equity ratio of 0.43, a current ratio of 0.70 and a quick ratio of 0.70. The firm has a 50 day simple moving average of $134.23 and a 200-day simple moving average of $113.12. ServiceNow has a 1-year low of $81.24 and a 1-year high of $192.97. The stock has a market cap of $144.72 billion, a price-to-earnings ratio of 72.65, a price-to-earnings-growth ratio of 2.55 and a beta of 0.99.

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

Insider Buying and Selling

In related news, Director Paul Chamberlain sold 2,700 shares of the stock in a transaction that occurred on Thursday, August 27th. The shares were sold at an average price of $135.50, for a total transaction of $365,850.00. Following the completion of the sale, the director owned 43,990 shares of the company’s stock, valued at approximately $5,960,645. This represents a 5.78% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, insider Paul Fipps sold 2,034 shares of the firm’s stock in a transaction that occurred on Monday, August 31st. The shares were sold at an average price of $147.87, for a total transaction of $300,767.58. Following the completion of the transaction, the insider owned 18,305 shares in the company, valued at $2,706,760.35. The trade was a 10.00% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last quarter, insiders sold 14,081 shares of company stock valued at $1,937,904. 0.34% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On ServiceNow

Several large investors have recently made changes to their positions in the business. BlackRock Inc. acquired a new stake in ServiceNow during the second quarter valued at approximately $9,536,615,000. Bank of New York Mellon Corp bought a new stake in ServiceNow during the second quarter worth approximately $712,573,000. Legal & General Group Plc bought a new stake in ServiceNow during the second quarter worth approximately $641,888,000. Bank of America Corp DE acquired a new position in ServiceNow in the second quarter worth approximately $627,355,000. Finally, Deutsche Bank AG acquired a new position in ServiceNow in the second quarter worth approximately $595,157,000. Institutional investors and hedge funds own 87.18% of the company’s stock.

ServiceNow News Roundup

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: Analyst support and AI growth: Oppenheimer said ServiceNow appears positioned for a favorable third-quarter outcome and raised its price target, while another analyst called NOW a top software pick. Expectations that AI, security and usage-based products could accelerate growth into fiscal 2027 supported the stock. Analyst Calls ServiceNow a Top Software Pick
• Positive Sentiment: New marketing collaboration: ServiceNow and Stagwell announced a three-year go-to-market partnership to modernize enterprise marketing campaigns. Stagwell plans to provide ServiceNow access to its AI-powered “The Machine” operating system, potentially expanding ServiceNow’s workflow platform into marketing operations and strengthening its AI credentials. Stagwell Closes the AI-Marketing Execution Gap with ServiceNow
• Positive Sentiment: Potentially attractive after the selloff: Coverage highlighted continued revenue growth of roughly 24%, expanding AI-powered workflows and recent product momentum. Some investors view the pullback as an opportunity ahead of third-quarter results, although the stock remains significantly below its 52-week high.
• Neutral Sentiment: Decagon acquisition rumors denied: ServiceNow said reports that it was interested in acquiring AI customer-service startup Decagon were false. The denial removes the prospect of a potentially expensive deal, but it also eliminates a possible way to accelerate ServiceNow’s customer-service AI capabilities. Jefferies maintained a buy rating and a $140 price target. ServiceNow’s Decagon Denial
• Negative Sentiment: Valuation remains a risk: Analysts noted that Salesforce currently has stronger earnings-estimate revisions, faster AI growth and a lower valuation. ServiceNow’s roughly 20%-plus growth must translate into stronger cash generation to justify its premium multiple, while recent spending on sales and engineering has pressured earnings despite higher revenue.

About ServiceNow

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.