ServiceNow (NYSE:NOW) Stock Price Down 4.4% on Insider Selling

ServiceNow, Inc. (NYSE:NOW)’s stock price dropped 4.4% during trading on Wednesday after an insider sold shares in the company. The stock traded as low as $136.38 and last traded at $136.5740. 14,433,567 shares were traded during mid-day trading, a decline of 38% from the average daily volume of 23,392,469 shares. The stock had previously closed at $142.90.

Specifically, insider Jacqueline P. Canney sold 7,847 shares of the firm’s stock in a transaction dated Friday, August 28th. The stock was sold at an average price of $138.00, for a total transaction of $1,082,886.00. Following the sale, the insider owned 30,042 shares of the company’s stock, valued at $4,145,796. This trade represents a 20.71% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Paul Fipps sold 2,034 shares of the stock in a transaction on Monday, August 31st. The stock was sold at an average price of $147.87, for a total transaction of $300,767.58. Following the sale, the insider directly owned 18,305 shares of the company’s stock, valued at $2,706,760.35. This represents a 10.00% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In related news, Director Paul Edward Chamberlain sold 2,700 shares of the company’s stock in a transaction on Thursday, August 27th. The shares were sold at an average price of $135.50, for a total value of $365,850.00. Following the completion of the transaction, the director directly owned 43,990 shares of the company’s stock, valued at approximately $5,960,645. This represents a 5.78% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link.

Analyst Upgrades and Downgrades

A number of research firms recently commented on NOW. Barclays reiterated an “overweight” rating and set a $134.00 price target (up from $132.00) on shares of ServiceNow in a report on Tuesday, May 5th. Evercore reaffirmed an “outperform” rating and set a $160.00 price target on shares of ServiceNow in a research report on Thursday, July 23rd. Piper Sandler reaffirmed an “overweight” rating and issued a $140.00 price objective on shares of ServiceNow in a report on Thursday, July 23rd. Weiss Ratings raised shares of ServiceNow from a “sell (d+)” rating to a “hold (c-)” rating in a report on Thursday, August 20th. Finally, Needham & Company LLC reaffirmed a “buy” rating and issued a $115.00 price objective on shares of ServiceNow in a research note on Thursday, July 23rd. One analyst has rated the stock with a Strong Buy rating, thirty-six have assigned a Buy rating, three have assigned a Hold rating and two have assigned a Sell rating to the stock. According to data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and a consensus target price of $144.24.

ServiceNow News Roundup

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: ServiceNow and Aramco Digital signed a collaboration agreement to support AI-powered enterprise transformation. The partnership could expand adoption of ServiceNow’s workflow and automation tools across Aramco’s operations and potentially more than 50 countries, strengthening the company’s competitive position versus Salesforce and Microsoft. ServiceNow and Aramco Digital Collaboration Agreement
• Neutral Sentiment: Analysts remain moderately optimistic about NOW despite its weaker performance versus some software peers. The Aramco agreement adds to ServiceNow’s AI growth narrative, but investors are likely to monitor competition from Salesforce and Microsoft, as well as whether agentic-AI deployments generate attractive returns. NOW Broadens Aramco AI Footprint
• Negative Sentiment: Security researchers reported that attackers may be able to escape the sandbox in ServiceNow’s AI platform. A vulnerability that enables access beyond the platform’s intended controls could raise concerns about enterprise data protection, customer trust, remediation costs and the pace of AI adoption. ServiceNow AI Platform Sandbox Security Report
• Negative Sentiment: Insiders continued to sell shares: President Paul Fipps sold 2,034 shares for about $301,000, director Paul Edward Chamberlain sold 2,700 shares for approximately $366,000, and Jacqueline Canney sold 7,847 shares for roughly $1.08 million. Canney’s sale was made under a pre-arranged Rule 10b5-1 plan, reducing its bearish significance, but the cluster of transactions may weigh on sentiment. ServiceNow Insider Selling Report

ServiceNow Stock Down 4.4%

The firm has a market capitalization of $141.22 billion, a price-to-earnings ratio of 85.36, a P/E/G ratio of 2.60 and a beta of 0.97. The company has a debt-to-equity ratio of 0.43, a current ratio of 0.70 and a quick ratio of 0.70. The stock has a fifty day moving average of $114.37 and a two-hundred day moving average of $107.20.

ServiceNow (NYSE:NOW) last posted its quarterly earnings data on Wednesday, July 22nd. The information technology services provider reported $0.90 earnings per share for the quarter, topping the consensus estimate of $0.86 by $0.04. The firm had revenue of $3.99 billion during the quarter, compared to analyst estimates of $3.93 billion. ServiceNow had a return on equity of 16.45% and a net margin of 11.34%.The business’s quarterly revenue was up 24.0% on a year-over-year basis. During the same period last year, the company posted $0.81 EPS. Sell-side analysts anticipate that ServiceNow, Inc. will post 2.24 earnings per share for the current year.

Institutional Investors Weigh In On ServiceNow

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Millstone Evans Group LLC raised its holdings in ServiceNow by 400.0% in the 4th quarter. Millstone Evans Group LLC now owns 165 shares of the information technology services provider’s stock worth $25,000 after purchasing an additional 132 shares in the last quarter. CBIZ Investment Advisory Services LLC lifted its position in ServiceNow by 540.0% in the 4th quarter. CBIZ Investment Advisory Services LLC now owns 160 shares of the information technology services provider’s stock valued at $25,000 after acquiring an additional 135 shares in the last quarter. Blueline Advisors LLC bought a new stake in ServiceNow in the 4th quarter worth about $25,000. Measured Wealth Private Client Group LLC raised its stake in ServiceNow by 560.0% during the 4th quarter. Measured Wealth Private Client Group LLC now owns 165 shares of the information technology services provider’s stock valued at $25,000 after buying an additional 140 shares during the last quarter. Finally, Cornerstone Financial Management LLC increased its position in ServiceNow by 72.8% during the second quarter. Cornerstone Financial Management LLC now owns 254 shares of the information technology services provider’s stock valued at $25,000 after acquiring an additional 107 shares during the last quarter. 87.18% of the stock is currently owned by institutional investors.

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.