ServiceNow (NYSE:NOW) Stock Price Down 17.7% on Analyst Downgrade

ServiceNow, Inc. (NYSE:NOW) shares traded down 17.7% on Thursday after Citizens Jmp lowered their price target on the stock from $260.00 to $157.00. Citizens Jmp currently has a market outperform rating on the stock. ServiceNow traded as low as $83.58 and last traded at $84.8490. 83,418,989 shares changed hands during trading, an increase of 299% from the average session volume of 20,900,893 shares. The stock had previously closed at $103.07.

Other equities research analysts have also recently issued reports about the stock. Morgan Stanley decreased their price objective on shares of ServiceNow from $210.00 to $180.00 and set an “overweight” rating for the company in a research report on Thursday. Mizuho decreased their price objective on shares of ServiceNow from $150.00 to $140.00 and set an “outperform” rating for the company in a research report on Thursday. Raymond James Financial decreased their price objective on shares of ServiceNow from $160.00 to $130.00 and set an “outperform” rating for the company in a research report on Thursday. Robert W. Baird decreased their price objective on shares of ServiceNow from $125.00 to $118.00 and set an “outperform” rating for the company in a research report on Thursday. Finally, Cantor Fitzgerald decreased their price objective on shares of ServiceNow to $122.00 and set an “overweight” rating for the company in a research report on Thursday. Three equities research analysts have rated the stock with a Strong Buy rating, thirty-three have given a Buy rating, six have given a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and a consensus target price of $147.68.

Insiders Place Their Bets

In other ServiceNow news, Director Paul Edward Chamberlain sold 1,500 shares of the firm’s stock in a transaction on Thursday, February 12th. The shares were sold at an average price of $101.17, for a total value of $151,755.00. Following the completion of the sale, the director directly owned 46,430 shares in the company, valued at approximately $4,697,323.10. This trade represents a 3.13% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, insider Kevin Thomas Mcbride sold 1,400 shares of the firm’s stock in a transaction on Friday, February 13th. The stock was sold at an average price of $105.71, for a total transaction of $147,994.00. Following the completion of the sale, the insider owned 26,314 shares of the company’s stock, valued at $2,781,652.94. The trade was a 5.05% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last ninety days, insiders sold 16,237 shares of company stock worth $1,697,162. 0.34% of the stock is currently owned by company insiders.

More ServiceNow News

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: Q1 revenue beat and company raised its annual subscription-revenue outlook, with management citing strong adoption of ServiceNow’s AI products as a growth driver. Earnings Beat & Raise
• Positive Sentiment: Strategic momentum: deeper Google Cloud partnership and CEO comments emphasize AI-led product traction that could drive recurring revenue and long-term monetization. Google Cloud Partnership
• Neutral Sentiment: Armis acquisition completed (adds cyber‑exposure capability), a strategic tuck‑in that expands the product set but increases near‑term integration/expense complexity. Armis Acquisition
• Negative Sentiment: Management warned the Armis deal and acquisition-related costs will weigh on margins (roughly +75 bps FY headwind; ~125 bps in Q2), spooking investors focused on near‑term profitability. Margin Headwind
• Negative Sentiment: Geopolitical impact: ServiceNow cited delayed large deals in the Middle East (Iran conflict) that trimmed subscription growth this quarter — investors treated the disruption as a material near‑term revenue risk. Deal Delays from Iran War
• Negative Sentiment: Wall Street reaction: multiple firms cut price targets and some trimmed forecasts after the call; that wave of downgrades magnified selling pressure. Analyst Price‑Target Cuts
• Negative Sentiment: Sector contagion and positioning: ServiceNow’s miss‑/guidance mix reignited AI-disruption fears across software names, triggering a broad selloff and higher short interest that increased volatility. Sector Selloff

Institutional Investors Weigh In On ServiceNow

A number of large investors have recently bought and sold shares of the stock. Premier Path Wealth Partners LLC grew its holdings in ServiceNow by 48.6% in the first quarter. Premier Path Wealth Partners LLC now owns 13,501 shares of the information technology services provider’s stock worth $1,412,000 after purchasing an additional 4,416 shares during the period. Cross Staff Investments Inc grew its holdings in shares of ServiceNow by 8.0% during the first quarter. Cross Staff Investments Inc now owns 4,050 shares of the information technology services provider’s stock valued at $423,000 after buying an additional 300 shares during the last quarter. GraniteShares Advisors LLC grew its holdings in shares of ServiceNow by 9.6% during the first quarter. GraniteShares Advisors LLC now owns 9,957 shares of the information technology services provider’s stock valued at $1,041,000 after buying an additional 868 shares during the last quarter. AMI Asset Management Corp grew its holdings in shares of ServiceNow by 112.2% during the first quarter. AMI Asset Management Corp now owns 379,351 shares of the information technology services provider’s stock valued at $39,661,000 after buying an additional 200,577 shares during the last quarter. Finally, SJS Investment Consulting Inc. grew its holdings in shares of ServiceNow by 55.6% during the first quarter. SJS Investment Consulting Inc. now owns 1,175 shares of the information technology services provider’s stock valued at $123,000 after buying an additional 420 shares during the last quarter. 87.18% of the stock is currently owned by institutional investors and hedge funds.

ServiceNow Price Performance

The stock has a market capitalization of $87.92 billion, a price-to-earnings ratio of 50.57, a PEG ratio of 1.73 and a beta of 1.01. The business’s fifty day moving average price is $105.18 and its 200-day moving average price is $138.45. The company has a debt-to-equity ratio of 0.12, a current ratio of 1.00 and a quick ratio of 1.00.

ServiceNow (NYSE:NOW) last issued its quarterly earnings data on Wednesday, April 22nd. The information technology services provider reported $0.97 earnings per share (EPS) for the quarter, meeting analysts’ consensus estimates of $0.97. The firm had revenue of $3.77 billion during the quarter, compared to analysts’ expectations of $3.75 billion. ServiceNow had a net margin of 12.59% and a return on equity of 18.16%. The business’s revenue was up 22.1% on a year-over-year basis. During the same period last year, the company earned $0.81 earnings per share. On average, research analysts forecast that ServiceNow, Inc. will post 2.49 EPS for the current year.

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.