ServiceNow, Inc. (NYSE:NOW) Receives Average Rating of “Moderate Buy” from Brokerages

Shares of ServiceNow, Inc. (NYSE:NOW) have been given an average rating of “Moderate Buy” by the forty-four ratings firms that are presently covering the company, MarketBeat Ratings reports. Two investment analysts have rated the stock with a sell recommendation, six have issued a hold recommendation, thirty-three have assigned a buy recommendation and three have issued a strong buy recommendation on the company. The average 12-month price target among brokers that have issued a report on the stock in the last year is $193.0108.

NOW has been the subject of a number of analyst reports. HSBC decreased their price objective on shares of ServiceNow from $266.40 to $226.00 and set a “buy” rating for the company in a research report on Friday, January 30th. JPMorgan Chase & Co. increased their price target on ServiceNow from $204.00 to $215.00 and gave the company an “overweight” rating in a report on Thursday, October 30th. DA Davidson restated a “buy” rating and set a $220.00 price objective on shares of ServiceNow in a report on Thursday, January 29th. Stifel Nicolaus set a $180.00 target price on ServiceNow and gave the company a “buy” rating in a research report on Thursday, January 29th. Finally, Deutsche Bank Aktiengesellschaft set a $180.00 price target on shares of ServiceNow in a research report on Thursday, January 29th.

Insider Activity at ServiceNow

In other news, CFO Gina Mastantuono sold 2,085 shares of the business’s stock in a transaction dated Friday, November 28th. The shares were sold at an average price of $161.60, for a total value of $336,936.00. Following the completion of the sale, the chief financial officer owned 63,215 shares of the company’s stock, valued at approximately $10,215,544. The trade was a 3.19% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, Vice Chairman Nicholas Tzitzon sold 2,610 shares of the company’s stock in a transaction dated Tuesday, November 18th. The shares were sold at an average price of $165.42, for a total transaction of $431,735.76. Following the completion of the sale, the insider owned 15,000 shares in the company, valued at approximately $2,481,240. This trade represents a 14.82% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 15,310 shares of company stock worth $2,533,585 over the last 90 days. Company insiders own 0.34% of the company’s stock.

Institutional Inflows and Outflows

A number of large investors have recently bought and sold shares of NOW. Klingman & Associates LLC raised its position in ServiceNow by 22.2% during the second quarter. Klingman & Associates LLC now owns 533 shares of the information technology services provider’s stock valued at $548,000 after acquiring an additional 97 shares in the last quarter. Ethic Inc. increased its stake in shares of ServiceNow by 1.6% during the 2nd quarter. Ethic Inc. now owns 25,496 shares of the information technology services provider’s stock worth $26,067,000 after purchasing an additional 397 shares during the last quarter. Howard Capital Management Inc. raised its holdings in shares of ServiceNow by 32.0% during the 2nd quarter. Howard Capital Management Inc. now owns 1,465 shares of the information technology services provider’s stock valued at $1,506,000 after purchasing an additional 355 shares in the last quarter. DekaBank Deutsche Girozentrale lifted its stake in shares of ServiceNow by 1.6% in the 2nd quarter. DekaBank Deutsche Girozentrale now owns 416,444 shares of the information technology services provider’s stock valued at $428,783,000 after purchasing an additional 6,431 shares during the last quarter. Finally, Whittier Trust Co. boosted its holdings in ServiceNow by 8.4% in the second quarter. Whittier Trust Co. now owns 99,643 shares of the information technology services provider’s stock worth $102,440,000 after purchasing an additional 7,701 shares in the last quarter. Institutional investors own 87.18% of the company’s stock.

Key Headlines Impacting ServiceNow

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: Company announced a sizable buyback program and an accelerated share repurchase (ASR) that signals management confidence and will immediately reduce float; that boost in capital-return activity supports upside if fundamentals hold.
• Positive Sentiment: Analyst upgrade: Argus moved NOW to a “strong‑buy,” adding buy-side momentum and validating the stock as an attractive entry for some investors. Zacks/Argus Upgrade
• Positive Sentiment: Needham reaffirmed its Buy rating with a $155 price target (material upside from current levels), reinforcing sell-off buyers who view weakness as a buying opportunity. TipRanks / Needham Note
• Positive Sentiment: ServiceNow deepened its AI platform strategy via a partnership with Anthropic, which supports the company’s product roadmap and helps counter narratives that new AI entrants will quickly displace incumbents. Forbes: Anthropic Partnership
• Neutral Sentiment: BetterInvesting published commentary questioning fair value after recent moves — a reminder that valuation debates persist even as management acts to support the share price. PR Newswire: BetterInvesting Update
• Negative Sentiment: Sectorwide AI fears and a broader software selloff pushed NOW (and peers) sharply lower — ServiceNow dropped nearly 8% on one session as investors punished software names over disruption concerns. This macro/sector pressure is the primary driver of today’s decline. Fool: Why NOW Tumbled CNBC: AI Fears Hammer Software
• Negative Sentiment: Broader “SaaSpocalypse” narratives and articles highlighting deep drawdowns in cloud/software names amplify investor caution; even with solid fundamentals, sentiment-driven selling can prolong weakness. 247WallSt: SaaSpocalypse

ServiceNow Trading Down 1.8%

NOW opened at $100.78 on Monday. The firm’s 50 day moving average is $144.39 and its 200-day moving average is $167.63. ServiceNow has a 52-week low of $98.94 and a 52-week high of $211.48. The company has a quick ratio of 1.00, a current ratio of 1.00 and a debt-to-equity ratio of 0.12. The firm has a market capitalization of $105.42 billion, a P/E ratio of 60.42, a P/E/G ratio of 1.71 and a beta of 0.98.

ServiceNow (NYSE:NOW) last announced its earnings results on Wednesday, January 28th. The information technology services provider reported $0.92 earnings per share for the quarter, beating the consensus estimate of $0.89 by $0.03. ServiceNow had a net margin of 13.16% and a return on equity of 18.54%. The business had revenue of $3.57 billion during the quarter, compared to the consensus estimate of $3.53 billion. During the same period in the prior year, the firm earned $0.73 earnings per share. The business’s quarterly revenue was up 20.7% compared to the same quarter last year. Analysts expect that ServiceNow will post 8.93 EPS for the current fiscal year.

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.