ServiceNow (NYSE:NOW) Trading Up 2.4% – Time to Buy?

ServiceNow, Inc. (NYSE:NOW) shot up 2.4% on Friday . The company traded as high as $104.59 and last traded at $102.1270. 23,355,480 shares changed hands during mid-day trading, an increase of 4% from the average session volume of 22,446,465 shares. The stock had previously closed at $99.69.

Trending Headlines about ServiceNow

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: ServiceNow is being highlighted as an attractive software stock after a sharp pullback, with commentary saying its valuation looks compelling relative to still-strong growth forecasts. Intuit Drops 63%: Are Software Stocks Deep Value or a Trap?
• Positive Sentiment: Analysts and market commentators continue to frame ServiceNow as an AI workflow recovery story, citing Bank of America’s Buy rating and $130 price target as support for the stock. Why ServiceNow (NOW) Is Still an AI Workflow Recovery Bet
• Positive Sentiment: New AI products and broader AI strategy are being credited with helping drive a rally in ServiceNow shares, reinforcing optimism around future demand. ServiceNow Rally Builds Around Broader AI Strategy
• Positive Sentiment: ServiceNow’s recent earnings remain a positive backdrop: the company met EPS expectations, beat on revenue, and delivered 22.1% year-over-year revenue growth. This supports the case for continued multiple expansion if growth stays resilient.
• Neutral Sentiment: Several articles today focused on whether ServiceNow’s post-earnings move can continue, suggesting the stock may be consolidating as investors reassess growth estimates rather than reacting to a new company-specific catalyst. Why Is ServiceNow (NOW) Up 17.6% Since Last Earnings Report?
• Neutral Sentiment: One note cut ServiceNow’s price target from $168 to $140 while keeping a Buy rating, which signals some caution on upside but still reflects confidence in the business. Citic Securities Adjusts ServiceNow Price Target

Analyst Upgrades and Downgrades

A number of brokerages have weighed in on NOW. Citigroup upped their target price on ServiceNow from $154.00 to $158.00 and gave the stock a “buy” rating in a research note on Thursday, April 30th. The Goldman Sachs Group decreased their target price on ServiceNow from $188.00 to $163.00 and set a “buy” rating on the stock in a research note on Thursday, April 23rd. Barclays reiterated an “overweight” rating and set a $134.00 price objective (up from $132.00) on shares of ServiceNow in a research report on Tuesday, May 5th. Needham & Company LLC reiterated a “buy” rating and set a $115.00 price objective on shares of ServiceNow in a research report on Tuesday, May 5th. Finally, Wall Street Zen lowered ServiceNow from a “buy” rating to a “hold” rating in a research report on Saturday, February 28th. Two research analysts have rated the stock with a Strong Buy rating, thirty-four have issued a Buy rating, six have given a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, ServiceNow presently has a consensus rating of “Moderate Buy” and an average target price of $141.85.

ServiceNow Trading Up 2.4%

The firm has a 50-day moving average of $99.01 and a 200-day moving average of $126.30. The company has a debt-to-equity ratio of 0.13, a quick ratio of 0.84 and a current ratio of 0.84. The firm has a market capitalization of $105.29 billion, a P/E ratio of 60.86, a price-to-earnings-growth ratio of 1.87 and a beta of 0.82.

ServiceNow (NYSE:NOW) last posted its quarterly earnings results on Wednesday, April 22nd. The information technology services provider reported $0.97 earnings per share (EPS) for the quarter, hitting the consensus estimate 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 period last year, the company earned $0.81 EPS. ServiceNow’s revenue for the quarter was up 22.1% compared to the same quarter last year. On average, equities research analysts anticipate that ServiceNow, Inc. will post 2.35 EPS for the current fiscal year.

Insider Buying and Selling

In related news, insider Paul Fipps sold 3,696 shares of the firm’s stock in a transaction that occurred on Monday, February 23rd. The stock was sold at an average price of $101.77, for a total transaction of $376,141.92. Following the transaction, the insider directly owned 8,061 shares in the company, valued at $820,367.97. This trade represents a 31.44% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, insider Jacqueline P. Canney sold 8,927 shares of the firm’s stock in a transaction that occurred on Friday, April 24th. The stock was sold at an average price of $89.60, for a total value of $799,859.20. Following the transaction, the insider owned 29,531 shares in the company, valued at approximately $2,645,977.60. The trade was a 23.21% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 31,767 shares of company stock valued at $2,906,098 in the last 90 days. 0.34% of the stock is owned by insiders.

Institutional Investors Weigh In On ServiceNow

Several institutional investors and hedge funds have recently bought and sold shares of NOW. World Investment Advisors increased its position in ServiceNow by 411.7% during the 4th quarter. World Investment Advisors now owns 47,955 shares of the information technology services provider’s stock valued at $7,346,000 after buying an additional 38,583 shares in the last quarter. Cohen Klingenstein LLC raised its stake in shares of ServiceNow by 400.0% in the fourth quarter. Cohen Klingenstein LLC now owns 10,000 shares of the information technology services provider’s stock worth $1,532,000 after purchasing an additional 8,000 shares during the last quarter. Sumitomo Mitsui Trust Group Inc. raised its stake in shares of ServiceNow by 385.9% in the fourth quarter. Sumitomo Mitsui Trust Group Inc. now owns 2,599,397 shares of the information technology services provider’s stock worth $398,202,000 after purchasing an additional 2,064,440 shares during the last quarter. Torray Investment Partners LLC raised its stake in shares of ServiceNow by 390.5% in the fourth quarter. Torray Investment Partners LLC now owns 40,629 shares of the information technology services provider’s stock worth $6,224,000 after purchasing an additional 32,345 shares during the last quarter. Finally, Jennison Associates LLC raised its stake in shares of ServiceNow by 280.1% in the fourth quarter. Jennison Associates LLC now owns 8,432,389 shares of the information technology services provider’s stock worth $1,291,758,000 after purchasing an additional 6,213,762 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.