ServiceNow (NYSE:NOW) Sets New 12-Month Low – Time to Sell?

ServiceNow, Inc. (NYSE:NOW)’s stock price reached a new 52-week low during mid-day trading on Tuesday . The company traded as low as $126.00 and last traded at $125.7280, with a volume of 3287400 shares trading hands. The stock had previously closed at $127.31.

ServiceNow News Summary

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: ServiceNow struck a three?year strategic deal to embed OpenAI models (including GPT?5.2) and deliver agentic AI across its platform, which should materially boost automation, customer value and product differentiation. Read More.
• Positive Sentiment: The company and OpenAI framed the collaboration publicly (BusinessWire, WSJ, Benzinga coverage), reinforcing the message that ServiceNow is positioning to monetize next?gen AI agents across enterprise workflows — a clear long?term growth catalyst. Read More.
• Positive Sentiment: Analyst support remains strong: TD Cowen reiterated a Buy with a $200 target, and other firms (Evercore ISI, Oppenheimer, Stifel) continue to highlight solid execution and AI tailwinds, which cushions downside and supports a recovery thesis. Read More.
• Neutral Sentiment: Management messaging at Davos and pieces on new workflow/security capabilities (biometrics) suggest a broader product roadmap, but these are medium?term storylines rather than immediate revenue drivers. Read More.
• Negative Sentiment: Shares have been in a multi?week decline and recently hit lows not seen since late 2023; weak momentum and technicals (50/200?day moving averages well above current price) are pressuring the stock. Read More.
• Negative Sentiment: Near?term headwinds include M&A-related concerns, potential reductions in U.S. federal spending and specific contract risks flagged by analysts — factors that could weigh on short?term revenue visibility despite the OpenAI deal. Read More.

Wall Street Analyst Weigh In

NOW has been the topic of a number of analyst reports. Macquarie reiterated a “neutral” rating and issued a $172.00 price objective on shares of ServiceNow in a research report on Thursday, January 8th. Arete upgraded shares of ServiceNow from a “neutral” rating to a “buy” rating and set a $200.00 target price for the company in a research note on Tuesday, January 6th. JPMorgan Chase & Co. boosted their price target on shares of ServiceNow from $204.00 to $215.00 and gave the stock an “overweight” rating in a research note on Thursday, October 30th. Mizuho set a $210.00 price target on shares of ServiceNow in a report on Tuesday, December 16th. Finally, TD Cowen lowered their price objective on ServiceNow from $250.00 to $230.00 and set a “buy” rating on the stock in a report on Friday, December 26th. Three research analysts have rated the stock with a Strong Buy rating, thirty-three have given a Buy rating, five have given a Hold rating and two have given a Sell rating to the stock. Based on data from MarketBeat, ServiceNow currently has an average rating of “Moderate Buy” and an average target price of $216.11.

ServiceNow Price Performance

The firm has a market cap of $131.81 billion, a PE ratio of 76.79, a price-to-earnings-growth ratio of 2.19 and a beta of 0.98. The company has a 50 day moving average price of $156.93 and a 200 day moving average price of $175.08. The company has a current ratio of 1.06, a quick ratio of 1.06 and a debt-to-equity ratio of 0.13.

Insiders Place Their Bets

In other news, insider Kevin Thomas Mcbride sold 1,400 shares of ServiceNow stock in a transaction on Friday, November 14th. The stock was sold at an average price of $168.50, for a total transaction of $235,894.40. Following the completion of the transaction, the insider owned 25,270 shares of the company’s stock, valued at $4,257,893.92. The trade was a 5.25% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through this hyperlink. Also, Director Paul Edward Chamberlain sold 1,500 shares of the stock in a transaction dated Friday, November 28th. The shares were sold at an average price of $161.60, for a total transaction of $242,400.00. Following the completion of the sale, the director directly owned 47,930 shares in the company, valued at approximately $7,745,488. The trade was a 3.03% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last quarter, insiders have sold 15,310 shares of company stock valued at $2,533,585. Company insiders own 0.34% of the company’s stock.

Institutional Investors Weigh In On ServiceNow

Institutional investors and hedge funds have recently bought and sold shares of the stock. Magnus Financial Group LLC increased its holdings in ServiceNow by 1.9% in the 3rd quarter. Magnus Financial Group LLC now owns 589 shares of the information technology services provider’s stock valued at $542,000 after purchasing an additional 11 shares in the last quarter. Highline Wealth Partners LLC grew its stake in shares of ServiceNow by 1.8% in the second quarter. Highline Wealth Partners LLC now owns 623 shares of the information technology services provider’s stock valued at $640,000 after buying an additional 11 shares in the last quarter. Richardson Financial Services Inc. raised its holdings in shares of ServiceNow by 50.0% during the 2nd quarter. Richardson Financial Services Inc. now owns 33 shares of the information technology services provider’s stock valued at $33,000 after buying an additional 11 shares during the period. Brady Martz Wealth Solutions LLC lifted its position in ServiceNow by 1.3% during the 3rd quarter. Brady Martz Wealth Solutions LLC now owns 842 shares of the information technology services provider’s stock worth $775,000 after acquiring an additional 11 shares in the last quarter. Finally, Avidian Wealth Enterprises LLC boosted its holdings in ServiceNow by 2.5% in the 3rd quarter. Avidian Wealth Enterprises LLC now owns 453 shares of the information technology services provider’s stock worth $417,000 after acquiring an additional 11 shares during the period. Hedge funds and other institutional investors 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.