ServiceNow (NYSE:NOW) Shares Climb 2.9% – Should You Buy?

ServiceNow, Inc. (NYSE:NOW) rose 2.9% on Tuesday. The stock traded as high as $109.26 and last traded at $109.0910. Approximately 13,935,081 shares were traded during trading, a decline of 36% from the average daily volume of 21,630,889 shares. The stock had previously closed at $106.01.

Key Stories Impacting ServiceNow

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: ServiceNow and LTM plan to expand their partnership, combining ServiceNow’s AI Platform with LTM’s consulting and engineering capabilities to scale agentic AI projects and joint sales efforts. The collaboration could support broader enterprise adoption, though the announcement did not quantify expected revenue. Article: LTM and ServiceNow expand partnership
• Positive Sentiment: The NBA extended its partnership with ServiceNow and will use EmployeeWorks for employee onboarding and workplace requests, adding a prominent customer deployment. Article: NBA and ServiceNow extend partnership
• Positive Sentiment: Argus assigned ServiceNow a Buy rating, offering a supportive analyst view amid the recent weakness. Article: ServiceNow earns Buy rating from Argus
• Neutral Sentiment: A customer announcement said KORE will deploy 3CLogic’s voice AI platform alongside ServiceNow Customer Service Management. This illustrates use of ServiceNow in an AI-enabled customer-service solution, but the announcement centers on 3CLogic and does not detail financial impact for ServiceNow. Article: KORE selects 3CLogic platform
• Negative Sentiment: Investors are focused on risks raised in the Q3 earnings call: despite ServiceNow lifting its AI contract-value target to $1.7 billion as adoption accelerates, slower backlog growth and revenue adjustments prompted questions about the outlook. Article: ServiceNow Q3 earnings call highlights
• Negative Sentiment: A separate analysis warned that costs are rising faster than AI adoption, adding to concerns about profitability. Broader investor worries that AI could disrupt established software companies have also weighed on sentiment toward ServiceNow. Article: ServiceNow AI adoption and rising costs

Analysts Set New Price Targets

NOW has been the topic of a number of analyst reports. Robert W. Baird set a $185.00 price objective on shares of ServiceNow in a research report on Thursday, October 29th. Stifel Nicolaus set a $160.00 price objective on shares of ServiceNow and gave the stock a “buy” rating in a research report on Tuesday, October 6th. Sanford C. Bernstein restated an “outperform” rating and issued a $266.00 target price on shares of ServiceNow in a research note on Tuesday, October 20th. TD Cowen reduced their target price on shares of ServiceNow from $165.00 to $160.00 and set a “buy” rating for the company in a research note on Thursday, October 29th. Finally, BTIG Research lowered their target price on shares of ServiceNow from $170.00 to $150.00 and set a “buy” rating on the stock in a report on Thursday, October 29th. One equities research analyst has rated the stock with a Strong Buy rating, thirty-six have issued a Buy rating, three have issued a Hold rating and three have assigned a Sell rating to the company. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and an average target price of $154.50.

ServiceNow Stock Down 6.0%

The company has a debt-to-equity ratio of 0.42, a quick ratio of 0.72 and a current ratio of 0.72. The firm has a fifty day moving average price of $137.04 and a 200 day moving average price of $114.92. The firm has a market capitalization of $106.13 billion, a price-to-earnings ratio of 59.46, a PEG ratio of 2.13 and a beta of 1.00.

ServiceNow (NYSE:NOW) last posted its quarterly earnings results on Wednesday, October 28th. The information technology services provider reported $1.00 earnings per share for the quarter, missing analysts’ consensus estimates of $1.02 by ($0.02). The business had revenue of $4.11 billion during the quarter, compared to analysts’ expectations of $4.09 billion. ServiceNow had a net margin of 9.36% and a return on equity of 15.17%. The firm’s quarterly revenue was up 20.5% compared to the same quarter last year. During the same quarter last year, the firm earned $4.82 earnings per share. As a group, sell-side analysts expect that ServiceNow, Inc. will post 2.12 EPS for the current fiscal year.

Insiders Place Their Bets

In other news, Director Paul Chamberlain sold 2,700 shares of the company’s stock in a transaction 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 transaction, the director directly owned 43,990 shares of the company’s stock, valued at $5,960,645. This represents a 5.78% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, insider Paul Fipps sold 2,034 shares of the stock in a transaction dated 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 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 ninety days, insiders have sold 14,081 shares of company stock worth $1,937,904. Corporate insiders own 0.34% of the company’s stock.

Institutional Trading of ServiceNow

Institutional investors have recently added to or reduced their stakes in the stock. BlackRock Inc. acquired a new position in shares of ServiceNow in the 2nd quarter valued at about $9,536,615,000. State Street Corp grew its position in shares of ServiceNow by 2.0% during the 2nd quarter. State Street Corp now owns 49,038,218 shares of the information technology services provider’s stock valued at $4,868,514,000 after buying an additional 979,726 shares during the last quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC raised its stake in ServiceNow by 16.6% during the second quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 16,638,071 shares of the information technology services provider’s stock worth $1,651,828,000 after acquiring an additional 2,362,606 shares during the period. Amundi raised its stake in ServiceNow by 60.9% during the first quarter. Amundi now owns 11,479,098 shares of the information technology services provider’s stock worth $1,200,140,000 after acquiring an additional 4,346,722 shares during the period. Finally, Bank of New York Mellon Corp raised its stake in ServiceNow by 6.5% during the first quarter. Bank of New York Mellon Corp now owns 8,526,931 shares of the information technology services provider’s stock worth $891,491,000 after acquiring an additional 518,263 shares during the period. Hedge funds and other institutional investors own 87.18% of the company’s stock.

About ServiceNow

ServiceNow, Inc provides cloud-based software designed to help organizations digitize, automate and manage enterprise workflows. Its Now Platform connects people, processes and systems across departments, enabling customers to manage work through a centralized technology environment.

The company’s products and services address a range of business needs, including information technology service management, IT operations management, customer service management, human resources service delivery, security operations, risk and compliance, and application development.