ServiceNow (NYSE:NOW) Trading Down 1.4% on Analyst Downgrade

ServiceNow, Inc. (NYSE:NOW) shares traded down 1.4% on Tuesday after BMO Capital Markets lowered their price target on the stock from $170.00 to $120.00. BMO Capital Markets currently has an outperform rating on the stock. ServiceNow traded as low as $87.12 and last traded at $87.81. 23,377,652 shares were traded during mid-day trading, an increase of 19% from the average session volume of 19,693,533 shares. The stock had previously closed at $89.06.

Several other research firms have also recently weighed in on NOW. Guggenheim upgraded shares of ServiceNow from a “sell” rating to a “neutral” rating in a research report on Tuesday, December 16th. Wall Street Zen cut shares of ServiceNow from a “buy” rating to a “hold” rating in a research report on Saturday, February 28th. Royal Bank Of Canada lowered their price objective on shares of ServiceNow from $150.00 to $121.00 and set an “outperform” rating for the company in a research report on Monday. The Goldman Sachs Group reduced their target price on shares of ServiceNow from $216.00 to $188.00 and set a “buy” rating on the stock in a research note on Tuesday, April 7th. Finally, BNP Paribas Exane raised shares of ServiceNow from a “neutral” rating to an “outperform” rating and set a $140.00 target price on the stock in a research note on Monday, March 16th. Three equities research analysts have rated the stock with a Strong Buy rating, thirty-three have given a Buy rating, six have issued a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and a consensus target price of $183.93.

Insider Activity

In other news, insider Paul Fipps sold 9,641 shares of the firm’s stock in a transaction dated Wednesday, February 18th. The shares were sold at an average price of $105.93, for a total value of $1,021,271.13. Following the transaction, the insider owned 11,757 shares of the company’s stock, valued at approximately $1,245,419.01. This trade represents a 45.06% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director Paul Edward Chamberlain sold 1,500 shares of ServiceNow stock in a transaction that occurred on Thursday, February 12th. The stock was sold at an average price of $101.17, for a total transaction of $151,755.00. Following the transaction, the director directly owned 46,430 shares in the company, valued at $4,697,323.10. The trade was a 3.13% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last quarter, insiders have sold 16,237 shares of company stock valued at $1,697,162. 0.34% of the stock is currently owned by insiders.

More ServiceNow News

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: New strategic partnership with Qlik to pull governed enterprise data and analytics into ServiceNow workflows — the move strengthens ServiceNow’s platform for enterprise AI and could increase product stickiness and cross-sell opportunities. ServiceNow Qlik Alliance Aims To Make NOW The Enterprise AI Nerve Center
• Positive Sentiment: Official press release on the Qlik partnership reiterating the product and go-to-market collaboration — a near-term commercial catalyst that investors may view as validating ServiceNow’s enterprise-AI roadmap. Qlik and ServiceNow Partner to Bring Trusted Enterprise Context into AI-Powered Workflows
• Neutral Sentiment: Sector-level dip-buying in high-quality SaaS names provided some support for software stocks generally, but it’s a broad market theme rather than company-specific upside for NOW. Cloudflare (NET) Stock Trades Up, Here Is Why
• Negative Sentiment: BMO Capital Markets cut its price target from $170 to $120 (still an “outperform”), lowering near-term valuation expectations and signaling reduced upside. BMO Capital Adjusts Price Target on ServiceNow to $120 From $170; Maintains Outperform Rating
• Negative Sentiment: RBC similarly lowered its price target to $121 while keeping an “outperform,” another data point suggesting analysts are trimming forward expectations and weighing valuation/AI risks. RBC Adjusts Price Target on ServiceNow to $121 From $150; Maintains Outperform Rating
• Negative Sentiment: UBS cut NOW to Neutral, increasing selling pressure from investors who follow that house view; multiple critical analyst notes and op-eds argue the stock still trades richly vs. peers and that the AI pivot faces skepticism. ServiceNow Cut to Neutral at UBS Group
• Negative Sentiment: Recent commentary pieces and analyst write-ups (Seeking Alpha and others) argue valuation remains stretched and that a correction is not over — sentiment pieces that can amplify selling in a weak tape. ServiceNow: Cheap Enough To Avoid

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently bought and sold shares of the company. J. Derek Lewis & Associates Inc. bought a new position in ServiceNow during the 4th quarter worth approximately $238,000. Stance Capital LLC boosted its stake in ServiceNow by 456.7% during the 4th quarter. Stance Capital LLC now owns 8,050 shares of the information technology services provider’s stock worth $1,233,000 after acquiring an additional 6,604 shares during the last quarter. Rockefeller Capital Management L.P. boosted its stake in ServiceNow by 649.2% during the 4th quarter. Rockefeller Capital Management L.P. now owns 515,470 shares of the information technology services provider’s stock worth $78,965,000 after acquiring an additional 446,667 shares during the last quarter. Bank of New Hampshire boosted its stake in ServiceNow by 401.9% during the 4th quarter. Bank of New Hampshire now owns 9,275 shares of the information technology services provider’s stock worth $1,421,000 after acquiring an additional 7,427 shares during the last quarter. Finally, Fund Advisors of America Inc FL bought a new position in ServiceNow during the 4th quarter worth approximately $507,000. Institutional investors own 87.18% of the company’s stock.

ServiceNow Stock Down 1.4%

The firm’s 50 day moving average is $106.70 and its two-hundred day moving average is $142.82. The firm has a market cap of $90.99 billion, a P/E ratio of 52.64, a price-to-earnings-growth ratio of 1.39 and a beta of 1.01. The company has a current ratio of 1.00, a quick ratio of 1.00 and a debt-to-equity ratio of 0.12.

ServiceNow (NYSE:NOW) last released its quarterly earnings data on Wednesday, January 28th. The information technology services provider reported $0.92 earnings per share for the quarter, topping the consensus estimate of $0.89 by $0.03. ServiceNow had a net margin of 13.16% and a return on equity of 18.54%. The business had revenue of $3.57 billion for the quarter, compared to analyst estimates of $3.53 billion. During the same quarter last year, the firm earned $0.73 EPS. ServiceNow’s quarterly revenue was up 20.7% compared to the same quarter last year. As a group, research analysts anticipate that ServiceNow, Inc. will post 8.93 EPS 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.