ServiceNow (NYSE:NOW) Rating Lowered to Hold at Wall Street Zen

ServiceNow (NYSE:NOW) was downgraded by equities research analysts at Wall Street Zen from a “buy” rating to a “hold” rating in a research report issued on Saturday.

A number of other equities analysts also recently commented on the stock. Oppenheimer reiterated an “outperform” rating and set a $175.00 target price (down from $200.00) on shares of ServiceNow in a research note on Wednesday, January 21st. DZ Bank raised ServiceNow to a “strong-buy” rating in a research report on Thursday, December 18th. Sanford C. Bernstein reissued an “outperform” rating on shares of ServiceNow in a research report on Thursday, January 29th. BTIG Research restated a “buy” rating and set a $200.00 target price on shares of ServiceNow in a research note on Thursday, January 29th. Finally, Robert W. Baird set a $175.00 price target on shares of ServiceNow in a research note on Thursday, January 29th. Three analysts have rated the stock with a Strong Buy rating, thirty-two have assigned a Buy rating, six have assigned a Hold rating and two have assigned a Sell rating to the stock. Based on data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average price target of $192.06.

ServiceNow Trading Down 1.2%

NYSE:NOW opened at $108.02 on Friday. ServiceNow has a 12-month low of $98.00 and a 12-month high of $211.48. The firm has a market cap of $112.99 billion, a PE ratio of 64.76, a price-to-earnings-growth ratio of 1.84 and a beta of 0.97. The company has a current ratio of 1.00, a quick ratio of 1.00 and a debt-to-equity ratio of 0.12. The stock has a fifty day moving average price of $126.64 and a 200 day moving average price of $159.44.

ServiceNow (NYSE:NOW) last posted its quarterly earnings results on Wednesday, January 28th. The information technology services provider reported $0.92 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.89 by $0.03. ServiceNow had a return on equity of 18.54% and a net margin of 13.16%.The company had revenue of $3.57 billion for the quarter, compared to analyst estimates of $3.53 billion. During the same quarter last year, the company earned $0.73 EPS. ServiceNow’s revenue for the quarter was up 20.7% compared to the same quarter last year. Sell-side analysts anticipate that ServiceNow will post 8.93 earnings per share for the current fiscal year.

Insider Activity at ServiceNow

In related news, CFO Gina Mastantuono sold 2,075 shares of the firm’s stock in a transaction that occurred on Friday, December 5th. The stock was sold at an average price of $170.00, for a total value of $352,750.00. Following the completion of the transaction, the chief financial officer directly owned 61,140 shares of the company’s stock, valued at $10,393,800. This trade represents a 3.28% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, insider Paul Fipps sold 9,641 shares of the business’s stock in a transaction on Wednesday, February 18th. The stock was sold at an average price of $105.93, for a total value of $1,021,271.13. Following the sale, the insider owned 11,757 shares in the company, valued at approximately $1,245,419.01. The trade was a 45.06% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last ninety days, insiders sold 18,312 shares of company stock valued at $2,049,912. 0.34% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in NOW. Cross Staff Investments Inc boosted its position in shares of ServiceNow by 400.0% in the 4th quarter. Cross Staff Investments Inc now owns 3,750 shares of the information technology services provider’s stock worth $574,000 after buying an additional 3,000 shares in the last quarter. Groupama Asset Managment lifted its holdings in shares of ServiceNow by 362.2% in the fourth quarter. Groupama Asset Managment now owns 62,250 shares of the information technology services provider’s stock valued at $9,536,000 after purchasing an additional 48,783 shares in the last quarter. Oak Grove Capital LLC grew its position in shares of ServiceNow by 412.0% in the fourth quarter. Oak Grove Capital LLC now owns 11,780 shares of the information technology services provider’s stock valued at $1,805,000 after purchasing an additional 9,479 shares during the last quarter. Alpine Global Management LLC purchased a new position in shares of ServiceNow during the 4th quarter worth approximately $224,000. Finally, Anchor Investment Management LLC raised its position in shares of ServiceNow by 453.4% during the 4th quarter. Anchor Investment Management LLC now owns 7,355 shares of the information technology services provider’s stock worth $1,127,000 after purchasing an additional 6,026 shares during the last quarter. Hedge funds and other institutional investors own 87.18% of the company’s stock.

More ServiceNow News

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: Technicals and analyst optimism: Several outlets note NOW is deeply oversold after a ~50% drawdown and some brokerages have high price targets (Citigroup $237 noted), creating a contrarian upside case if the $100 area holds. Read More.
• Positive Sentiment: New AI product launches: ServiceNow unveiled Autonomous Workforce and EmployeeWorks to extend AI-driven orchestration and enterprise automation — a strategic move to monetize AI across workflows rather than be displaced by it. Read More.
• Positive Sentiment: Operational proof points: ServiceNow reports it resolves ~90% of its own IT requests autonomously, which management can use to demonstrate ROI to customers and accelerate sales. Read More.
• Positive Sentiment: Ecosystem and compliance wins: Moveworks from ServiceNow has FedRAMP Moderate authorization (opens public‑sector sales) and ServiceNow AVR integration with Contrast Security strengthens enterprise security credentials. Read More. and Read More.
• Neutral Sentiment: Comparative positioning: Analysts comparing GitLab and ServiceNow see NOW’s large‑deal momentum and deep workflow integrations as advantages, but the piece highlights competitive and macro headwinds in the enterprise software space. Read More.
• Neutral Sentiment: Partnership/marketing momentum: EY collaboration and third‑party integrations (e.g., startups building ServiceNow ties) support long‑term adoption but are incremental near‑term drivers. Read More.
• Negative Sentiment: Insider selling: Director/insider Paul Fipps sold 3,696 shares (~$376k) on Feb 23, trimming his stake — an isolated insider sale that can be read negatively by some investors. Read More.
• Negative Sentiment: Rising short interest and narrative risk: Short interest rose markedly in February (~28% increase), and ongoing media/analyst debate about AI eroding software growth is keeping sentiment weak and amplifying volatility. Read More.
• Negative Sentiment: Investor patience tested: Coverage notes that rolling out AI products and integrating acquisitions (Moveworks) is necessary but may test investor patience as management demonstrates real revenue and margin benefits. Read More.

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.