Paul Fipps Sells 2,034 Shares of ServiceNow (NYSE:NOW) Stock

ServiceNow, Inc. (NYSE:NOW) 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 completion of the transaction, the insider directly owned 18,305 shares in the company, valued at $2,706,760.35. This trade represents a 10.00% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website.

ServiceNow Stock Down 4.4%

ServiceNow stock opened at $136.57 on Thursday. The stock 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 company has a debt-to-equity ratio of 0.43, a current ratio of 0.70 and a quick ratio of 0.70. The stock’s fifty day moving average is $115.22 and its two-hundred day moving average is $107.44. ServiceNow, Inc. has a 1-year low of $81.24 and a 1-year high of $194.73.

ServiceNow (NYSE:NOW) last released 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 business had revenue of $3.99 billion during the quarter, compared to analysts’ expectations of $3.93 billion. During the same period in the prior year, the firm posted $0.81 EPS. The business’s quarterly revenue was up 24.0% compared to the same quarter last year. On average, sell-side analysts expect that ServiceNow, Inc. will post 2.24 EPS for the current fiscal year.

Key ServiceNow News

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: ServiceNow and Aramco Digital signed a collaboration agreement to expand AI-powered enterprise transformation. The partnership could broaden adoption of ServiceNow’s AI workflow tools across Aramco’s operations and strengthen the company’s competitive position versus Salesforce and Microsoft. ServiceNow and Aramco Digital Collaboration Agreement
• Positive Sentiment: Pricefx launched a Deal Optimization App for the ServiceNow AI Platform, embedding pricing guidance, negotiation insights and product recommendations into enterprise sales workflows. The announcement supports the view that partners are using ServiceNow as an AI distribution layer, potentially increasing platform usage and ecosystem revenue. ServiceNow as an Enterprise AI Commerce Platform
• Neutral Sentiment: Analysts remain moderately optimistic despite ServiceNow’s weaker performance than some software peers. However, with a reported price-to-earnings ratio above 85, investors may require continued strong growth and successful monetization of AI initiatives to justify the valuation. ServiceNow Performance Compared With Software Peers
• Negative Sentiment: Researchers reported that attackers may be able to break out of a sandbox in the ServiceNow AI Platform. A vulnerability involving AI tools could raise concerns about customer data, enterprise security, remediation costs and reputational risk, making this the most direct company-specific pressure on the stock. ServiceNow AI Platform Sandbox Security Report
• Negative Sentiment: Multiple insiders recently sold shares, including Paul Fipps, Jacqueline Canney and Director Paul Edward Chamberlain. Some transactions were made under pre-arranged trading plans, reducing their bearish significance, but the cluster of sales may still weigh on investor sentiment. ServiceNow Insider Selling Report

Analyst Upgrades and Downgrades

NOW has been the subject of several research analyst reports. Sanford C. Bernstein restated an “outperform” rating and issued a $248.00 target price (up from $236.00) on shares of ServiceNow in a report on Thursday, July 23rd. Piper Sandler restated an “overweight” rating and issued a $140.00 price objective on shares of ServiceNow in a research note on Thursday, July 23rd. Royal Bank Of Canada reaffirmed an “outperform” rating and set a $130.00 price objective on shares of ServiceNow in a report on Thursday, July 23rd. JPMorgan Chase & Co. lifted their target price on ServiceNow from $145.00 to $150.00 and gave the stock an “overweight” rating in a research report on Thursday, July 23rd. Finally, CLSA assumed coverage on ServiceNow in a report on Monday, July 20th. They issued an “underperform” rating and a $72.00 target price for the company. 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 assigned a Sell rating to the company. According to data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and a consensus target price of $144.24.

Hedge Funds Weigh In On ServiceNow

Several hedge funds have recently bought and sold shares of NOW. Florida Financial Advisors LLC raised its stake in shares of ServiceNow by 5.4% during the 2nd quarter. Florida Financial Advisors LLC now owns 273 shares of the information technology services provider’s stock worth $280,000 after buying an additional 14 shares during the last quarter. Clark Capital Management Group Inc. lifted its holdings in shares of ServiceNow by 3.6% in the third quarter. Clark Capital Management Group Inc. now owns 514 shares of the information technology services provider’s stock valued at $473,000 after purchasing an additional 18 shares in the last quarter. American Trust grew its position in shares of ServiceNow by 1.8% in the third quarter. American Trust now owns 1,029 shares of the information technology services provider’s stock valued at $947,000 after purchasing an additional 18 shares during the last quarter. Morse Asset Management Inc increased its stake in shares of ServiceNow by 0.5% during the 2nd quarter. Morse Asset Management Inc now owns 3,488 shares of the information technology services provider’s stock worth $3,586,000 after purchasing an additional 19 shares in the last quarter. Finally, CYBER HORNET ETFs LLC lifted its stake in ServiceNow by 3.7% in the 3rd quarter. CYBER HORNET ETFs LLC now owns 567 shares of the information technology services provider’s stock valued at $522,000 after buying an additional 20 shares in the last quarter. 87.18% of the stock is owned by hedge funds and other institutional investors.

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.