ServiceNow (NYSE:NOW) Trading Down 3.5% Following Analyst Downgrade

ServiceNow, Inc. (NYSE:NOW) fell 3.5% during mid-day trading on Thursday after Citic Securities lowered their price target on the stock from $168.00 to $140.00. Citic Securities currently has a buy rating on the stock. ServiceNow traded as low as $98.11 and last traded at $99.7020. 25,763,489 shares changed hands during mid-day trading, an increase of 15% from the average session volume of 22,429,227 shares. The stock had previously closed at $103.30.

NOW has been the subject of a number of other reports. Citizens Jmp reaffirmed a “market outperform” rating and set a $157.00 target price on shares of ServiceNow in a research report on Tuesday, May 5th. Argus dropped their price target on ServiceNow from $180.00 to $134.00 and set a “buy” rating on the stock in a research report on Friday, April 24th. Royal Bank Of Canada restated an “outperform” rating and set a $121.00 price target on shares of ServiceNow in a research note on Tuesday, May 5th. Evercore upped their price objective on shares of ServiceNow from $140.00 to $150.00 and gave the stock an “outperform” rating in a research note on Tuesday, May 5th. Finally, Sanford C. Bernstein reiterated an “outperform” rating and set a $236.00 target price (up from $226.00) on shares of ServiceNow in a report on Wednesday, May 6th. Two research analysts have rated the stock with a Strong Buy rating, thirty-four have assigned a Buy rating, six have given a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, ServiceNow presently has an average rating of “Moderate Buy” and an average target price of $141.85.

Insider Buying and Selling

In other ServiceNow news, Director Anita M. Sands sold 16,445 shares of ServiceNow stock in a transaction dated Thursday, May 14th. The stock was sold at an average price of $90.14, for a total value of $1,482,352.30. Following the transaction, the director owned 30,090 shares in the company, valued at $2,712,312.60. The trade was a 35.34% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, insider Jacqueline P. Canney sold 8,927 shares of the business’s stock in a transaction dated Friday, April 24th. The stock was sold at an average price of $89.60, for a total transaction of $799,859.20. Following the completion of the transaction, the insider owned 29,531 shares of the company’s stock, valued at $2,645,977.60. This represents a 23.21% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last quarter, insiders sold 31,767 shares of company stock valued at $2,906,098. 0.34% of the stock is currently owned by insiders.

ServiceNow News Roundup

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: New reports say ServiceNow’s rally is being driven by its broader AI strategy, including fresh AI products and renewed analyst support. One update noted the stock had already gained nearly 9% on the news. ServiceNow Rally Builds Around Broader AI Strategy
• Positive Sentiment: Wall Street coverage remains constructive, with BofA restarting ServiceNow with a Buy rating and Citic Securities also maintaining a Buy even after cutting its price target to $140 from $168. Citic Securities price target update
• Positive Sentiment: Several articles frame ServiceNow as a beneficiary of “agentic AI,” arguing the company could become a control center for enterprise automation rather than a casualty of AI disruption. Wall Street Is Warming Up to ServiceNow Stock
• Neutral Sentiment: A ServiceNow partner, IntegrityPro Consulting, announced AI jobs tied to West Palm Beach, which supports the ecosystem story but is unlikely to move the stock on its own. ServiceNow partner IntegrityPro Consulting brings AI jobs to West Palm
• Negative Sentiment: Despite the positive AI narrative, recent valuation-focused commentary still highlights that ServiceNow has fallen sharply over the past year, showing investors remain sensitive to rich multiples and prior share-price declines. Assessing ServiceNow (NOW) Valuation After A Year Of Sharp Share Price Declines

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently modified their holdings of the company. Brighton Jones LLC increased its position in shares of ServiceNow by 1.1% during the fourth quarter. Brighton Jones LLC now owns 2,753 shares of the information technology services provider’s stock worth $2,919,000 after purchasing an additional 30 shares in the last quarter. Sivia Capital Partners LLC boosted its position in shares of ServiceNow by 4.2% in the 2nd quarter. Sivia Capital Partners LLC now owns 837 shares of the information technology services provider’s stock worth $861,000 after purchasing an additional 34 shares in the last quarter. United Bank grew its stake in ServiceNow by 15.5% during the 2nd quarter. United Bank now owns 1,519 shares of the information technology services provider’s stock worth $1,562,000 after buying an additional 204 shares during the last quarter. Riggs Asset Managment Co. Inc. grew its stake in ServiceNow by 2.2% during the 2nd quarter. Riggs Asset Managment Co. Inc. now owns 1,922 shares of the information technology services provider’s stock worth $1,976,000 after buying an additional 42 shares during the last quarter. Finally, Nebula Research & Development LLC increased its position in ServiceNow by 205.1% during the 2nd quarter. Nebula Research & Development LLC now owns 906 shares of the information technology services provider’s stock valued at $931,000 after buying an additional 609 shares in the last quarter. Hedge funds and other institutional investors own 87.18% of the company’s stock.

ServiceNow Stock Down 3.5%

The company has a 50-day moving average of $99.35 and a 200-day moving average of $126.89. The company has a current ratio of 0.84, a quick ratio of 0.84 and a debt-to-equity ratio of 0.13. The company has a market capitalization of $102.79 billion, a price-to-earnings ratio of 59.42, a price-to-earnings-growth ratio of 1.85 and a beta of 0.82.

ServiceNow (NYSE:NOW) last issued its quarterly earnings results on Wednesday, April 22nd. The information technology services provider reported $0.97 earnings per share for the quarter, hitting analysts’ consensus estimates of $0.97. ServiceNow had a return on equity of 18.16% and a net margin of 12.59%.The business had revenue of $3.77 billion for the quarter, compared to analyst estimates of $3.75 billion. During the same quarter in the previous year, the firm earned $0.81 earnings per share. The company’s revenue was up 22.1% on a year-over-year basis. On average, equities analysts predict that ServiceNow, Inc. will post 2.35 earnings per share for the current fiscal year.

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.