ServiceNow (NYSE:NOW) Trading 3.3% Higher – Here’s Why

ServiceNow, Inc. (NYSE:NOW) shares rose 3.3% during mid-day trading on Tuesday . The company traded as high as $97.50 and last traded at $96.07. 31,522,715 shares changed hands during trading, an increase of 30% from the average session volume of 24,202,088 shares. The stock had previously closed at $93.01.

Key ServiceNow News

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: ServiceNow is expanding its AI ecosystem through new and deeper partnerships with HCLTech, Google Cloud, IBM, Inspira Enterprise, ID.me, Servos, Nametag, and Aria Systems, which could help accelerate enterprise AI adoption, strengthen governance tools, and open up new workflow and billing use cases. Article Title
• Positive Sentiment: Raymond James said ServiceNow may be gaining pricing power, arguing that price increases could boost near-term revenue and support durable high-margin growth. Article Title
• Positive Sentiment: Wall Street remains broadly constructive on ServiceNow, with reports highlighting analysts’ bullish long-term expectations despite AI-related competitive concerns. Article Title
• Neutral Sentiment: Comparisons with Salesforce and other enterprise software peers are keeping investors focused on ServiceNow’s revenue trajectory and whether its AI strategy can sustain growth. Article Title
• Neutral Sentiment: ServiceNow continues to attract trader interest as a “trending stock,” but that attention appears more reflective of market focus on the name than a fresh fundamental catalyst. Article Title
• Negative Sentiment: The stock has also been pressured by broader software weakness and “AI concerns,” with some articles noting that the pullback may reflect investor caution despite solid earnings. Article Title

Wall Street Analyst Weigh In

Several analysts have recently commented on NOW shares. Royal Bank Of Canada reaffirmed an “outperform” rating and issued a $121.00 price objective on shares of ServiceNow in a report on Tuesday, May 5th. Benchmark raised their target price on shares of ServiceNow from $125.00 to $130.00 and gave the stock a “buy” rating in a report on Monday, June 15th. TD Cowen restated a “buy” rating and set a $140.00 target price on shares of ServiceNow in a research report on Thursday, April 23rd. Sanford C. Bernstein reaffirmed an “outperform” rating and issued a $236.00 price target (up from $226.00) on shares of ServiceNow in a report on Wednesday, May 6th. Finally, Weiss Ratings downgraded ServiceNow from a “hold (c)” rating to a “hold (c-)” rating in a research report on Tuesday, April 21st. One research analyst has rated the stock with a Strong Buy rating, thirty-five have assigned a Buy rating, five have given a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and a consensus target price of $142.17.

ServiceNow Stock Performance

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’s 50 day moving average is $99.98 and its 200-day moving average is $115.96. The stock has a market capitalization of $93.23 billion, a price-to-earnings ratio of 53.81, a PEG ratio of 1.60 and a beta of 0.94.

ServiceNow (NYSE:NOW) last announced its quarterly earnings results on Wednesday, April 22nd. The information technology services provider reported $0.97 earnings per share (EPS) for the quarter, hitting analysts’ consensus estimates of $0.97. ServiceNow had a net margin of 12.59% and a return on equity of 18.16%. The firm 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 earnings per share. The firm’s quarterly revenue was up 22.1% compared to the same quarter last year. Analysts forecast that ServiceNow, Inc. will post 2.34 earnings per share for the current fiscal year.

Insiders Place Their Bets

In related news, insider Jacqueline P. Canney sold 8,927 shares of ServiceNow stock in a transaction dated Friday, April 24th. The stock was sold at an average price of $89.60, for a total value of $799,859.20. Following the completion of the transaction, the insider owned 29,531 shares in the company, valued at $2,645,977.60. The trade was a 23.21% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, insider Paul Fipps sold 1,048 shares of the company’s stock in a transaction dated Monday, May 18th. The stock was sold at an average price of $98.51, for a total value of $103,238.48. Following the completion of the transaction, the insider directly owned 12,072 shares of the company’s stock, valued at $1,189,212.72. The trade was a 7.99% decrease in their position. The SEC filing for this sale provides additional information. 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. Insiders have sold 28,071 shares of company stock worth $2,529,956 in the last 90 days. 0.34% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently made changes to their positions in the business. IAG Wealth Partners LLC grew its position in shares of ServiceNow by 200.0% in the third quarter. IAG Wealth Partners LLC now owns 27 shares of the information technology services provider’s stock valued at $25,000 after purchasing an additional 18 shares during the period. Noble Wealth Management PBC raised its position in shares of ServiceNow by 400.0% during the 4th quarter. Noble Wealth Management PBC now owns 160 shares of the information technology services provider’s stock worth $25,000 after purchasing an additional 128 shares during the last quarter. Millstone Evans Group LLC raised its position in shares of ServiceNow by 400.0% during 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 during the last quarter. CBIZ Investment Advisory Services LLC lifted its stake 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 buying an additional 135 shares in the last quarter. Finally, Blueline Advisors LLC purchased a new position in ServiceNow in the 4th quarter valued at about $25,000. 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.