ServiceNow’s (NOW) “Buy” Rating Reiterated at Argus

Argus restated their buy rating on shares of ServiceNow (NYSE:NOW) in a research note released on Tuesday morning,Benzinga reports. They currently have a $170.00 price objective on the information technology services provider’s stock.

Other equities research analysts have also recently issued research reports about the company. Deutsche Bank Aktiengesellschaft raised their price objective on ServiceNow from $135.00 to $155.00 and gave the stock a “buy” rating in a report on Monday, September 21st. Needham & Company LLC upped their target price on ServiceNow from $115.00 to $155.00 and gave the company a “buy” rating in a research note on Friday, September 11th. JPMorgan Chase & Co. upped their target price on ServiceNow from $150.00 to $160.00 and gave the company an “overweight” rating in a research note on Thursday, October 29th. Citigroup reduced their target price on ServiceNow from $170.00 to $157.00 and set a “buy” rating on the stock in a research report on Thursday, October 29th. Finally, Evercore reissued an “outperform” rating on shares of ServiceNow in a research note on Tuesday, October 13th. One analyst has rated the stock with a Strong Buy rating, thirty-six have assigned a Buy rating, three have issued a Hold rating and three have assigned a Sell rating to the company. Based on data from MarketBeat, ServiceNow currently has an average rating of “Moderate Buy” and an average price target of $154.50.

ServiceNow Stock Performance

Shares of NOW opened at $102.24 on Tuesday. 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 company 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. The company’s 50 day simple moving average is $137.04 and its 200 day simple moving average is $114.92. ServiceNow has a 1 year low of $81.24 and a 1 year high of $175.80.

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

Insiders Place Their Bets

In other news, insider Jacqueline Canney sold 7,847 shares of the stock in a transaction on Friday, August 28th. The shares were sold at an average price of $138.00, for a total value of $1,082,886.00. Following the completion of 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 legal filing with the Securities & Exchange Commission, which is available at this hyperlink. 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 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 directly owned 18,305 shares in the company, valued at approximately $2,706,760.35. This represents a 10.00% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold a total of 14,081 shares of company stock worth $1,937,904 over the last ninety days. 0.34% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in NOW. BlackRock Inc. acquired a new stake in shares of ServiceNow during the second quarter worth $9,536,615,000. Bank of New York Mellon Corp bought a new stake in ServiceNow in the second quarter valued at about $712,573,000. Legal & General Group Plc bought a new stake in ServiceNow in the second quarter valued at about $641,888,000. Bank of America Corp DE acquired a new position in ServiceNow in the second quarter valued at about $627,355,000. Finally, Deutsche Bank AG acquired a new position in ServiceNow in the second quarter valued at about $595,157,000. 87.18% of the stock is owned by hedge funds and other institutional investors.

ServiceNow News Roundup

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

ServiceNow Company Profile

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.