ServiceNow (NYSE:NOW) Stock Price Down 1.1% – Here’s What Happened

ServiceNow, Inc. (NYSE:NOW) was down 1.1% on Tuesday. The company traded as low as $128.12 and last traded at $130.0540. 9,726,249 shares changed hands during trading, a decline of 56% from the average daily volume of 22,345,693 shares. The stock had previously closed at $131.45.

ServiceNow News Roundup

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: ServiceNow is leading a broader recovery in enterprise software, with investors rotating back into technology names after recent weakness. ServiceNow Climbs as Software Names Lead a Rebound
• Positive Sentiment: Deutsche Bank included ServiceNow among its preferred technology stocks for the remainder of the year, supporting the view that NOW could participate in the next phase of the AI trade. Tech Stocks That Could Lead the Next AI Trade
• Positive Sentiment: Nvidia CEO Jensen Huang’s description of ServiceNow as potentially the leading enterprise-AI platform reinforces confidence in the company’s strategic positioning. ServiceNow’s reported AI annual contract value above $1 billion and continued AI contract growth add fundamental support. ServiceNow and Enterprise AI
• Positive Sentiment: Analysts and market commentators argue that the stock’s prior reset created a more attractive entry point, while ServiceNow’s entrenched workflow software and presence across much of the Fortune 500 support its long-term moat. AI Stocks Rebuilding After Pullbacks
• Neutral Sentiment: Dyna Software announced general availability of Platform Copilot for ServiceNow, potentially expanding the platform’s AI ecosystem, although the announcement did not disclose a material financial contribution to NOW. Dyna Software Announces Platform Copilot
• Negative Sentiment: Investors remain concerned about AI-related security flaws, potential disruption, valuation, and delays in near-term enterprise deal activity. NOW trades at a premium earnings multiple, making execution important. ServiceNow Stock May Be Fully Priced
• Negative Sentiment: Reported insider activity shows multiple sales and no purchases over the past six months, a potential caution signal even though insider transactions do not necessarily reflect management’s outlook.

Analyst Ratings Changes

Several equities analysts have commented on NOW shares. Bank of America upped their price objective on shares of ServiceNow from $130.00 to $150.00 and gave the company a “buy” rating in a report on Wednesday, August 19th. CLSA assumed coverage on ServiceNow in a research report on Monday, July 20th. They issued an “underperform” rating and a $72.00 target price on the stock. Guggenheim upgraded ServiceNow from a “neutral” rating to a “buy” rating and set a $125.00 price objective on the stock in a research report on Wednesday, July 1st. Citigroup reaffirmed a “market outperform” rating on shares of ServiceNow in a report on Thursday, July 23rd. Finally, Sanford C. Bernstein restated an “outperform” rating on shares of ServiceNow in a research note on Wednesday, September 9th. One equities research analyst has rated the stock with a Strong Buy rating, thirty-six have given a Buy rating, three have assigned a Hold rating and two have assigned a Sell rating to the company. According to MarketBeat.com, ServiceNow has a consensus rating of “Moderate Buy” and an average target price of $147.00.

ServiceNow Trading Up 3.4%

The company has a market capitalization of $143.26 billion, a price-to-earnings ratio of 86.60, a P/E/G ratio of 2.39 and a beta of 0.97. 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 50 day moving average price is $128.45 and its two-hundred day moving average price is $111.16.

ServiceNow (NYSE:NOW) last issued its quarterly earnings data on Wednesday, July 22nd. The information technology services provider reported $0.90 EPS for the quarter, beating the consensus estimate of $0.86 by $0.04. The business had revenue of $3.99 billion during the quarter, compared to the consensus estimate of $3.93 billion. ServiceNow had a net margin of 11.34% and a return on equity of 16.45%. The firm’s revenue was up 24.0% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $0.81 EPS. On average, equities analysts predict that ServiceNow, Inc. will post 2.22 earnings per share for the current fiscal year.

Insider Activity at ServiceNow

In other news, insider Jacqueline P. Canney sold 7,847 shares of the stock in a transaction dated Friday, August 28th. The stock was 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 approximately $4,145,796. This represents a 20.71% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Paul Fipps sold 2,034 shares of the company’s stock in a transaction that occurred 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 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 ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 14,081 shares of company stock worth $1,937,904 in the last quarter. 0.34% of the stock is owned by insiders.

Institutional Investors Weigh In On ServiceNow

Large investors have recently modified their holdings of the company. BlackRock Inc. acquired a new stake in ServiceNow during the 2nd quarter worth about $9,536,615,000. State Street Corp increased its stake in shares of ServiceNow by 406.6% in the 4th quarter. State Street Corp now owns 47,896,597 shares of the information technology services provider’s stock valued at $7,337,280,000 after acquiring an additional 38,441,898 shares in the last quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC increased its stake in shares of ServiceNow by 417.0% in the 4th quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 14,004,910 shares of the information technology services provider’s stock valued at $2,145,412,000 after acquiring an additional 11,295,806 shares in the last quarter. Capital International Investors lifted its position in shares of ServiceNow by 396.0% during the 4th quarter. Capital International Investors now owns 10,393,373 shares of the information technology services provider’s stock valued at $1,592,310,000 after acquiring an additional 8,297,818 shares during the period. Finally, Nuveen LLC lifted its position in shares of ServiceNow by 342.6% during the 4th quarter. Nuveen LLC now owns 9,530,753 shares of the information technology services provider’s stock valued at $1,460,016,000 after acquiring an additional 7,377,244 shares during the period. 87.18% of the stock is currently owned by institutional investors and hedge funds.

About ServiceNow

ServiceNow, Inc is a cloud-based enterprise software company that helps organizations digitize, automate and manage workflows. Its platform connects people, processes and systems across departments, enabling businesses to replace manual, disconnected activities with standardized digital workflows.

The company’s products and services support a range of functions, including information technology service management, IT operations management, customer service, human resources, risk and security operations, and software development.