ServiceNow (NYSE:NOW) Trading Down 4.8% – Should You Sell?

ServiceNow, Inc. (NYSE:NOW) shares fell 4.8% during mid-day trading on Thursday . The stock traded as low as $106.38 and last traded at $110.1810. 29,276,545 shares traded hands during trading, an increase of 21% from the average session volume of 24,212,672 shares. The stock had previously closed at $115.76.

More ServiceNow News

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: ServiceNow raised its full-year revenue outlook, reinforcing confidence in continued demand for its workflow-automation platform and supporting the recent improvement in the stock. Why Shares of ServiceNow Stock Were Rising This Week
• Positive Sentiment: Second-quarter revenue rose approximately 24% year over year to about $4 billion, while adjusted earnings exceeded expectations. Management also highlighted more than $1 billion in AI-related contract value, suggesting AI agents are adding consumption-based revenue rather than simply reducing software-seat demand. ServiceNow Stock Opinions on Q2 Earnings Results
• Positive Sentiment: Analyst commentary remains constructive, with reported price targets materially above the recent trading level. One bullish analysis raised its fair-value estimate to $160, citing accelerating user retention, strong organic growth, pricing power in AI products and a long-term target of $30 billion to $32 billion in subscription revenue. ServiceNow User Retention Is Accelerating
• Neutral Sentiment: Dynamic Lifecycle Innovations launched an IT asset-disposition application on ServiceNow, adding another example of partners expanding the platform’s use cases. The announcement is strategically supportive but is unlikely to materially change near-term revenue expectations. Dynamic Lifecycle Innovations launches new ServiceNow app
• Negative Sentiment: ServiceNow could eliminate up to 1,000 positions this year as part of a post-acquisition “rightsizing” effort. The cuts may improve efficiency and margins, but reports of continuing layoffs create execution, morale and integration concerns for investors. Exclusive: ServiceNow to cut up to 1K jobs

Analysts Set New Price Targets

NOW has been the subject of several research reports. Wolfe Research set a $125.00 price objective on shares of ServiceNow in a research note on Thursday, April 23rd. Benchmark restated a “buy” rating on shares of ServiceNow in a report on Friday, July 17th. Stifel Nicolaus lowered their price target on shares of ServiceNow from $135.00 to $120.00 and set a “buy” rating on the stock in a research report on Thursday, April 23rd. Citic Securities reduced their target price on shares of ServiceNow from $168.00 to $140.00 and set a “buy” rating on the stock in a research note on Thursday, May 21st. Finally, Morgan Stanley set a $180.00 price objective on ServiceNow in a report on Tuesday, July 21st. One investment analyst has rated the stock with a Strong Buy rating, thirty-six have assigned a Buy rating, two have issued a Hold rating and three have issued a Sell rating to the stock. According to data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and a consensus target price of $143.39.

ServiceNow Trading Up 1.4%

The firm has a market cap of $115.36 billion, a PE ratio of 69.73, a price-to-earnings-growth ratio of 1.94 and a beta of 0.96. 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 company’s 50 day moving average price is $105.64 and its 200 day moving average price is $106.43.

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

Insider Activity at ServiceNow

In other news, insider Paul Fipps sold 1,048 shares of the business’s stock in a transaction that occurred on Monday, May 18th. The shares were sold at an average price of $98.51, for a total transaction of $103,238.48. Following the completion of the sale, the insider owned 12,072 shares in the company, valued at approximately $1,189,212.72. The trade was a 7.99% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. 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. Also, Director Paul Edward Chamberlain sold 1,500 shares of the firm’s stock in a transaction dated Thursday, May 14th. The stock was sold at an average price of $87.23, for a total value of $130,845.00. Following the transaction, the director directly owned 44,930 shares in the company, valued at approximately $3,919,243.90. The trade was a 3.23% 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. Insiders sold 19,144 shares of company stock valued at $1,730,097 over the last three months. 0.34% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On ServiceNow

Hedge funds have recently added to or reduced their stakes in the company. Wedge Capital Management L L P NC grew its holdings in ServiceNow by 5.4% in the second quarter. Wedge Capital Management L L P NC now owns 2,512 shares of the information technology services provider’s stock valued at $249,000 after purchasing an additional 129 shares during the last quarter. Investors Research Corp increased its holdings in ServiceNow by 787.2% during the 2nd quarter. Investors Research Corp now owns 7,674 shares of the information technology services provider’s stock valued at $762,000 after acquiring an additional 6,809 shares in the last quarter. Tema ETFs LLC increased its holdings in ServiceNow by 10.0% during the 2nd quarter. Tema ETFs LLC now owns 20,679 shares of the information technology services provider’s stock valued at $2,053,000 after acquiring an additional 1,885 shares in the last quarter. Canvas Wealth Advisors LLC raised its position in ServiceNow by 60.7% during the second quarter. Canvas Wealth Advisors LLC now owns 28,524 shares of the information technology services provider’s stock worth $2,832,000 after acquiring an additional 10,773 shares during the last quarter. Finally, Fiduciary Financial Group LLC purchased a new stake in shares of ServiceNow in the second quarter valued at about $404,000. Institutional investors and hedge funds own 87.18% of the company’s stock.

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.