ServiceNow (NYSE:NOW) Stock Price Down 2.3% – Time to Sell?

ServiceNow, Inc. (NYSE:NOW)’s share price dropped 2.3% during trading on Wednesday . The company traded as low as $93.42 and last traded at $93.7350. Approximately 16,908,844 shares were traded during trading, a decline of 30% from the average session volume of 24,174,344 shares. The stock had previously closed at $95.94.

Key Stories Impacting ServiceNow

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: Wall Street commentary remains constructive, with reports highlighting ServiceNow’s pricing power and analysts still seeing significant upside from current levels, which supports the idea that the recent weakness may be a buying opportunity.
• Positive Sentiment: ServiceNow continues to expand its AI and workflow ecosystem through new partnerships, including efforts around AI governance, public sector modernization, and secure enterprise workflows, reinforcing its long-term growth story.
• Positive Sentiment: Coverage focused on ServiceNow as a trending stock suggests increased trader and investor attention, which can help fuel short-term momentum.
• Neutral Sentiment: Recent articles comparing ServiceNow with other enterprise software leaders and explaining how to invest in the stock are mostly informational, with limited direct impact on fundamentals.
• Negative Sentiment: AI-related concerns are still weighing on the name, as investors worry that advances in AI could disrupt parts of the enterprise software market and pressure valuations.
• Negative Sentiment: The stock has also been under pressure following a broader selloff in beaten-down software shares, so some of the rebound may reflect sector rotation rather than a clear company-specific improvement.

Analysts Set New Price Targets

Several brokerages have recently issued reports on NOW. Cantor Fitzgerald set a $130.00 price target on shares of ServiceNow in a research report on Monday, June 15th. Wall Street Zen cut shares of ServiceNow from a “buy” rating to a “hold” rating in a report on Saturday, February 28th. Argus reduced their target price on shares of ServiceNow from $180.00 to $134.00 and set a “buy” rating on the stock in a report on Friday, April 24th. Mizuho dropped their price target on shares of ServiceNow from $150.00 to $140.00 and set an “outperform” rating for the company in a research note on Thursday, April 23rd. Finally, Weiss Ratings cut ServiceNow from a “hold (c)” rating to a “hold (c-)” rating in a research note on Tuesday, April 21st. One analyst has rated the stock with a Strong Buy rating, thirty-five have given a Buy rating, five have given a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, the company currently has an average rating of “Moderate Buy” and an average price target of $142.17.

ServiceNow Stock Down 2.3%

The company has a debt-to-equity ratio of 0.13, a current ratio of 0.84 and a quick ratio of 0.84. The company has a market cap of $96.64 billion, a PE ratio of 55.86, a P/E/G ratio of 1.55 and a beta of 0.94. The business’s 50 day moving average is $99.89 and its 200-day moving average is $116.48.

ServiceNow (NYSE:NOW) last announced its quarterly earnings data on Wednesday, April 22nd. The information technology services provider reported $0.97 EPS for the quarter, meeting analysts’ consensus estimates of $0.97. ServiceNow had a net margin of 12.59% and a return on equity of 18.16%. The company had revenue of $3.77 billion for the quarter, compared to the consensus estimate of $3.75 billion. During the same period in the prior year, the firm posted $0.81 EPS. The company’s quarterly revenue was up 22.1% compared to the same quarter last year. As a group, analysts predict that ServiceNow, Inc. will post 2.34 EPS for the current year.

Insiders Place Their Bets

In other news, Director Paul Edward Chamberlain sold 1,500 shares of the company’s stock in a transaction dated Thursday, May 14th. The stock was sold at an average price of $87.23, for a total transaction of $130,845.00. Following the completion of the transaction, the director directly owned 44,930 shares of the company’s stock, valued at approximately $3,919,243.90. This represents a 3.23% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Paul Fipps sold 1,048 shares of the stock in a transaction dated Monday, May 18th. The shares were sold at an average price of $98.51, for a total value of $103,238.48. Following the completion of the transaction, the insider owned 12,072 shares in the company, valued at approximately $1,189,212.72. The trade was a 7.99% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last ninety days, insiders sold 28,071 shares of company stock worth $2,529,956. 0.34% of the stock is owned by corporate insiders.

Institutional Trading of ServiceNow

Institutional investors have recently modified their holdings of the stock. Basecamp Wealth Advisors LLC boosted its holdings in shares of ServiceNow by 4.3% in the 1st quarter. Basecamp Wealth Advisors LLC now owns 2,909 shares of the information technology services provider’s stock valued at $304,000 after buying an additional 121 shares in the last quarter. Western Wealth Management LLC grew its position in shares of ServiceNow by 35.7% in the 1st quarter. Western Wealth Management LLC now owns 19,660 shares of the information technology services provider’s stock valued at $2,055,000 after buying an additional 5,167 shares during the last quarter. Wealth High Governance Capital Ltda acquired a new stake in ServiceNow during the 1st quarter worth $732,000. Wealth High Governance Asset Management Ltda. acquired a new stake in ServiceNow during the 1st quarter worth $627,000. Finally, Lombard Odier Asset Management Europe Ltd lifted its position in ServiceNow by 104.9% in the first quarter. Lombard Odier Asset Management Europe Ltd now owns 99,813 shares of the information technology services provider’s stock valued at $10,435,000 after acquiring an additional 51,108 shares during the last quarter. Hedge funds and other institutional investors own 87.18% of the company’s stock.

About ServiceNow

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.