ServiceNow (NYSE:NOW) Stock Jumps 2.9% – Still a Buy?

ServiceNow, Inc. (NYSE:NOW)’s stock price traded up 2.9% during trading on Tuesday. The stock traded as high as $109.26 and last traded at $109.0910. Approximately 13,935,081 shares traded hands during trading, a decline of 36% from the average session volume of 21,630,889 shares. The stock had previously closed at $106.01.

Trending Headlines about ServiceNow

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: Argus reaffirmed its Buy rating and set a $170 price target, citing potential upside from current levels. Other bullish commentary points to ServiceNow’s growing customer base and demand for AI-powered workflow automation. Argus price target and outlook Why ServiceNow Stock Is a Buy Now
• Positive Sentiment: ServiceNow is expanding its enterprise AI push through its Control Tower Alliance and partnerships with major technology companies. The initiatives could strengthen its role in helping businesses deploy and govern AI, though investors will look for evidence they translate into growth. ServiceNow launches Control Tower Alliance
• Neutral Sentiment: ServiceNow’s Q3 revenue was about $4.1 billion, but the company is increasing AI investment and shifting toward outcome-based pricing. Those moves may support adoption over time, but their near-term effects on costs, margins, and revenue visibility remain key questions. How higher AI spending will impact ServiceNow
• Negative Sentiment: The main pressure is concern over weaker fourth-quarter backlog guidance, which has fueled doubts about future growth and contributed to a steep recent decline. Investors are also worried that agentic AI could challenge per-seat software pricing and that higher AI-related spending and business-model changes could weigh on profitability. ServiceNow selloff and analyst target cuts Analyst questions from ServiceNow’s Q3 call

Wall Street Analysts Forecast Growth

NOW has been the topic of a number of research reports. BMO Capital Markets upped their price target on ServiceNow from $115.00 to $118.00 and gave the stock an “outperform” rating in a research note on Thursday, July 23rd. Royal Bank Of Canada set a $165.00 target price on shares of ServiceNow and gave the stock an “outperform” rating in a research note on Thursday, October 29th. Jefferies Financial Group set a $145.00 price objective on shares of ServiceNow in a research report on Thursday, October 29th. DA Davidson set a $170.00 price target on ServiceNow and gave the company a “buy” rating in a report on Monday, July 20th. Finally, The Goldman Sachs Group restated a “buy” rating on shares of ServiceNow in a research note on Monday, August 3rd. One analyst has rated the stock with a Strong Buy rating, thirty-six have given a Buy rating, three have issued a Hold rating and three have issued a Sell rating to the stock. According to MarketBeat.com, ServiceNow currently has an average rating of “Moderate Buy” and an average target price of $154.50.

ServiceNow Trading Up 2.9%

The company’s 50 day simple moving average is $138.25 and its two-hundred day simple moving average is $115.29. The company has a debt-to-equity ratio of 0.43, a quick ratio of 0.70 and a current ratio of 0.70. The stock has a market cap of $113.24 billion, a price-to-earnings ratio of 78.48, a price-to-earnings-growth ratio of 2.75 and a beta of 1.00.

ServiceNow (NYSE:NOW) last announced its earnings results on Wednesday, October 28th. The information technology services provider reported $1.00 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $1.02 by ($0.02). ServiceNow had a return on equity of 15.38% and a net margin of 9.36%. The company had revenue of $4.11 billion for the quarter, compared to the consensus estimate of $4.09 billion. During the same period last year, the firm posted $4.82 EPS. The company’s revenue was up 20.5% compared to the same quarter last year. Research analysts expect that ServiceNow, Inc. will post 2.14 EPS for the current fiscal year.

Insider Activity at ServiceNow

In other news, insider Paul Fipps sold 2,034 shares of ServiceNow stock in a transaction that occurred on Monday, August 31st. The shares were sold at an average price of $147.87, for a total value of $300,767.58. Following the sale, the insider directly owned 18,305 shares in the company, valued at $2,706,760.35. This trade represents a 10.00% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, Director Paul Chamberlain sold 2,700 shares of the company’s stock in a transaction that occurred 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 sale, the director owned 43,990 shares in the company, valued at $5,960,645. This represents a 5.78% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last ninety days, insiders have sold 14,081 shares of company stock valued at $1,937,904. 0.34% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently added to or reduced their stakes in the company. Leelyn Smith LLC boosted its holdings in ServiceNow by 8.7% in the 3rd quarter. Leelyn Smith LLC now owns 13,840 shares of the information technology services provider’s stock valued at $1,855,000 after purchasing an additional 1,105 shares during the period. Formidable Asset Management LLC increased its position in shares of ServiceNow by 5.9% in the 3rd quarter. Formidable Asset Management LLC now owns 21,007 shares of the information technology services provider’s stock valued at $2,815,000 after buying an additional 1,167 shares in the last quarter. Palisade Asset Management LLC acquired a new position in shares of ServiceNow in the 3rd quarter valued at approximately $324,000. Parallel Advisors LLC increased its position in shares of ServiceNow by 11.5% during the third quarter. Parallel Advisors LLC now owns 24,021 shares of the information technology services provider’s stock worth $3,219,000 after acquiring an additional 2,485 shares in the last quarter. Finally, W.G. Shaheen & Associates DBA Whitney & Co raised its position in ServiceNow by 2.1% in the 3rd quarter. W.G. Shaheen & Associates DBA Whitney & Co now owns 85,553 shares of the information technology services provider’s stock valued at $11,465,000 after buying an additional 1,787 shares during the last quarter. Institutional investors own 87.18% of the company’s stock.

ServiceNow Company Profile

ServiceNow, Inc provides cloud-based software designed to help organizations digitize, automate and manage enterprise workflows. Its Now Platform connects people, processes and systems across departments, enabling customers to manage work through a centralized technology environment.

The company’s products and services address a range of business needs, including information technology service management, IT operations management, customer service management, human resources service delivery, security operations, risk and compliance, and application development.