ServiceNow (NYSE:NOW) Shares Down 4.6% – Time to Sell?

ServiceNow, Inc. (NYSE:NOW)’s share price was down 4.6% on Friday. The company traded as low as $139.94 and last traded at $141.7360. Approximately 15,454,637 shares were traded during trading, a decline of 28% from the average daily volume of 21,595,588 shares. The stock had previously closed at $148.57.

ServiceNow News Roundup

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: Piper Sandler raised its price target to $175 from $140 and maintained an “overweight” rating, implying meaningful upside and reflecting confidence in ServiceNow’s growth outlook. ServiceNow Stock Trending: Employees Build AI Agents with Nvidia Oversight
• Positive Sentiment: ServiceNow introduced new EmployeeWorks capabilities that allow employees to build AI agents without coding, along with an Nvidia-backed AI Passport designed to manage permissions, business context and emergency controls for AI agents. These products could strengthen adoption of ServiceNow’s workflow and governance platform. ServiceNow introduces the third generation of its employee-centric AI harness
• Positive Sentiment: Recent coverage highlights ServiceNow’s deep integration into enterprise systems, strong customer retention and consistent revenue growth. Analysts also expect potential support from customer upgrades, security-product demand and U.S. federal spending. ServiceNow stock rises as investors rotate to enterprise software stocks
• Neutral Sentiment: ServiceNow’s shares benefited previously from a denial of reports that it was interested in acquiring AI startup Decagon, reducing concerns about a potentially expensive acquisition. That benefit has faded as broader market sentiment has deteriorated. ServiceNow Climbs After Denying Decagon Acquisition Interest
• Negative Sentiment: Enterprise software stocks are falling as AI-financing concerns spread. Investors appear to be taking profits and reducing exposure to expensive AI beneficiaries, with ServiceNow declining alongside Palantir and Salesforce despite its improving AI product portfolio. Enterprise Software Stocks Fall as AI Financing Worries Spread

Analyst Ratings Changes

Several brokerages have recently issued reports on NOW. TD Cowen raised their price target on ServiceNow from $140.00 to $165.00 and gave the company a “buy” rating in a research report on Thursday. Deutsche Bank Aktiengesellschaft boosted their price objective on ServiceNow from $135.00 to $155.00 and gave the stock a “buy” rating in a research report on Monday, September 21st. Cantor Fitzgerald boosted their price objective on ServiceNow from $141.00 to $174.00 and gave the stock an “overweight” rating in a research report on Monday, September 21st. Oppenheimer restated an “outperform” rating and set a $165.00 target price (up from $140.00) on shares of ServiceNow in a research note on Tuesday. Finally, Piper Sandler raised their target price on ServiceNow from $140.00 to $175.00 and gave the company an “overweight” rating in a report on Friday. One research analyst has rated the stock with a Strong Buy rating, thirty-five have assigned a Buy rating, four have given a Hold rating and two have assigned a Sell rating to the company. According to data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and a consensus price target of $151.73.

ServiceNow Trading Down 4.6%

The company has a current ratio of 0.70, a quick ratio of 0.70 and a debt-to-equity ratio of 0.43. The business’s fifty day simple moving average is $135.20 and its two-hundred day simple moving average is $113.67. The stock has a market capitalization of $146.56 billion, a P/E ratio of 88.58, a P/E/G ratio of 2.61 and a beta of 0.99.

ServiceNow (NYSE:NOW) last posted its quarterly earnings results 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 net margin of 11.34% and a return on equity of 16.45%. The company had revenue of $3.99 billion for the quarter, compared to analyst estimates of $3.93 billion. During the same period last year, the business posted $0.81 EPS. The business’s quarterly revenue was up 24.0% on a year-over-year basis. As a group, analysts forecast that ServiceNow, Inc. will post 2.22 earnings per share for the current year.

Insider Activity at ServiceNow

In related news, insider Jacqueline Canney sold 7,847 shares of the stock in a transaction dated 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 in the company, valued at approximately $4,145,796. This trade represents a 20.71% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Paul Chamberlain sold 2,700 shares of ServiceNow stock in a transaction dated Thursday, August 27th. The stock was sold at an average price of $135.50, for a total value of $365,850.00. Following the sale, the director directly owned 43,990 shares in the company, valued at approximately $5,960,645. This trade represents a 5.78% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last 90 days, insiders sold 14,081 shares of company stock worth $1,937,904. Company insiders own 0.34% of the company’s stock.

Institutional Trading of ServiceNow

A number of hedge funds have recently modified their holdings of the company. Cornerstone Financial Management LLC raised its stake in shares of ServiceNow by 72.8% in the second quarter. Cornerstone Financial Management LLC now owns 254 shares of the information technology services provider’s stock valued at $25,000 after purchasing an additional 107 shares in the last quarter. CrossGen Wealth LLC acquired a new stake in ServiceNow during the first quarter worth $29,000. Caitong International Asset Management Co. Ltd boosted its stake in ServiceNow by 4,157.1% during the fourth quarter. Caitong International Asset Management Co. Ltd now owns 298 shares of the information technology services provider’s stock worth $46,000 after buying an additional 291 shares in the last quarter. Marquette Asset Management LLC increased its holdings in ServiceNow by 75.0% in the 2nd quarter. Marquette Asset Management LLC now owns 301 shares of the information technology services provider’s stock valued at $30,000 after buying an additional 129 shares during the period. Finally, Kilter Group LLC bought a new stake in ServiceNow in the 2nd quarter valued at $31,000. Institutional investors own 87.18% of the company’s stock.

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.