ServiceNow (NYSE:NOW) Trading Down 4.4% After Insider Selling

ServiceNow, Inc. (NYSE:NOW)’s share price fell 4.4% during mid-day trading on Wednesday following insider selling activity. The stock traded as low as $136.38 and last traded at $136.5740. Approximately 14,433,567 shares changed hands during mid-day trading, a decline of 38% from the average session volume of 23,392,469 shares. The stock had previously closed at $142.90.

Specifically, insider Jacqueline P. Canney sold 7,847 shares of the company’s stock in a transaction on Friday, August 28th. The shares were sold at an average price of $138.00, for a total transaction of $1,082,886.00. Following the sale, the insider owned 30,042 shares of the company’s stock, valued at $4,145,796. This represents a 20.71% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Paul Fipps sold 2,034 shares of the stock in a transaction on Monday, August 31st. The shares were sold at an average price of $147.87, for a total value of $300,767.58. Following the sale, 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 other ServiceNow news, Director Paul Edward Chamberlain sold 2,700 shares of the firm’s stock in a transaction dated Thursday, August 27th. The shares were sold at an average price of $135.50, for a total value of $365,850.00. Following the completion of the sale, the director owned 43,990 shares of the company’s stock, valued at $5,960,645. This trade represents a 5.78% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink.

Wall Street Analysts Forecast Growth

A number of analysts have weighed in on the company. Morgan Stanley set a $180.00 target price on ServiceNow in a report on Tuesday, July 21st. Citic Securities reduced their price objective on ServiceNow from $168.00 to $140.00 and set a “buy” rating for the company in a research note on Thursday, May 21st. BMO Capital Markets lifted their price objective on shares of ServiceNow from $115.00 to $118.00 and gave the company an “outperform” rating in a research note on Thursday, July 23rd. Piper Sandler reiterated an “overweight” rating and issued a $140.00 price objective on shares of ServiceNow in a research note on Thursday, July 23rd. Finally, UBS Group set a $248.00 target price on shares of ServiceNow in a research report on Thursday, July 23rd. One analyst has rated the stock with a Strong Buy rating, thirty-six have assigned a Buy rating, three have assigned a Hold rating and two have given a Sell rating to the company. According to data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and a consensus price target of $144.24.

Key ServiceNow News

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: ServiceNow and Aramco Digital signed a collaboration agreement to support AI-powered enterprise transformation. The partnership could expand adoption of ServiceNow’s workflow and automation tools across Aramco’s operations and potentially more than 50 countries, strengthening the company’s competitive position versus Salesforce and Microsoft. ServiceNow and Aramco Digital Collaboration Agreement
• Neutral Sentiment: Analysts remain moderately optimistic about NOW despite its weaker performance versus some software peers. The Aramco agreement adds to ServiceNow’s AI growth narrative, but investors are likely to monitor competition from Salesforce and Microsoft, as well as whether agentic-AI deployments generate attractive returns. NOW Broadens Aramco AI Footprint
• Negative Sentiment: Security researchers reported that attackers may be able to escape the sandbox in ServiceNow’s AI platform. A vulnerability that enables access beyond the platform’s intended controls could raise concerns about enterprise data protection, customer trust, remediation costs and the pace of AI adoption. ServiceNow AI Platform Sandbox Security Report
• Negative Sentiment: Insiders continued to sell shares: President Paul Fipps sold 2,034 shares for about $301,000, director Paul Edward Chamberlain sold 2,700 shares for approximately $366,000, and Jacqueline Canney sold 7,847 shares for roughly $1.08 million. Canney’s sale was made under a pre-arranged Rule 10b5-1 plan, reducing its bearish significance, but the cluster of transactions may weigh on sentiment. ServiceNow Insider Selling Report

ServiceNow Stock Down 4.4%

The company has a market cap of $141.22 billion, a PE ratio of 85.36, a P/E/G ratio of 2.60 and a beta of 0.97. The business has a 50-day simple moving average of $114.37 and a 200-day simple moving average of $107.20. The company has a quick ratio of 0.70, a current ratio of 0.70 and a debt-to-equity ratio of 0.43.

ServiceNow (NYSE:NOW) last posted its quarterly earnings data on Wednesday, July 22nd. The information technology services provider reported $0.90 EPS for the quarter, beating analysts’ consensus estimates of $0.86 by $0.04. The business had revenue of $3.99 billion during the quarter, compared to analysts’ expectations of $3.93 billion. ServiceNow had a return on equity of 16.45% and a net margin of 11.34%.The business’s revenue was up 24.0% compared to the same quarter last year. During the same period in the previous year, the business earned $0.81 earnings per share. Equities research analysts anticipate that ServiceNow, Inc. will post 2.24 EPS for the current year.

Institutional Investors Weigh In On ServiceNow

Several institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Second Line Capital LLC raised its position in shares of ServiceNow by 60.4% in the second quarter. Second Line Capital LLC now owns 30,561 shares of the information technology services provider’s stock valued at $3,034,000 after buying an additional 11,512 shares during the last quarter. Cornerstone Financial Management LLC boosted its position in ServiceNow by 72.8% during the second quarter. Cornerstone Financial Management LLC now owns 254 shares of the information technology services provider’s stock worth $25,000 after acquiring an additional 107 shares during the last quarter. Brown Financial Advisors grew its stake in ServiceNow by 18.0% during the 2nd quarter. Brown Financial Advisors now owns 11,937 shares of the information technology services provider’s stock valued at $1,185,000 after acquiring an additional 1,821 shares in the last quarter. Advus Financial Partners LLC grew its stake in ServiceNow by 71.7% during the 2nd quarter. Advus Financial Partners LLC now owns 3,763 shares of the information technology services provider’s stock valued at $374,000 after acquiring an additional 1,572 shares in the last quarter. Finally, VIRGINIA RETIREMENT SYSTEMS ET Al acquired a new stake in ServiceNow in the 2nd quarter valued at about $28,275,000. 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.