ServiceNow (NYSE:NOW) Stock Price Down 2% Following Analyst Downgrade

Shares of ServiceNow, Inc. (NYSE:NOW) traded down 2% on Thursday after Stifel Nicolaus lowered their price target on the stock from $180.00 to $135.00. Stifel Nicolaus currently has a buy rating on the stock. ServiceNow traded as low as $98.46 and last traded at $101.9770. 16,551,624 shares traded hands during trading, a decline of 12% from the average session volume of 18,755,967 shares. The stock had previously closed at $104.04.

NOW has been the subject of a number of other reports. Macquarie Infrastructure lowered their target price on shares of ServiceNow from $172.00 to $140.00 and set a “neutral” rating for the company in a research note on Thursday, January 29th. Benchmark started coverage on shares of ServiceNow in a research note on Wednesday. They set a “buy” rating and a $125.00 price target on the stock. Weiss Ratings reaffirmed a “hold (c)” rating on shares of ServiceNow in a report on Thursday, January 22nd. Truist Financial set a $175.00 price objective on shares of ServiceNow in a research note on Thursday, February 5th. Finally, Royal Bank Of Canada dropped their price objective on shares of ServiceNow from $185.00 to $150.00 and set an “outperform” rating on the stock in a report on Monday, February 9th. Three analysts have rated the stock with a Strong Buy rating, thirty-three have given a Buy rating, five have issued a Hold rating and two have issued a Sell rating to the company. Based on data from MarketBeat, ServiceNow has an average rating of “Moderate Buy” and a consensus target price of $188.59.

Insider Buying and Selling at ServiceNow

In related news, insider Paul Fipps sold 9,641 shares of ServiceNow stock in a transaction that occurred on Wednesday, February 18th. The stock was sold at an average price of $105.93, for a total transaction of $1,021,271.13. Following the completion of the transaction, the insider directly owned 11,757 shares in the company, valued at approximately $1,245,419.01. This trade represents a 45.06% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, insider Kevin Thomas Mcbride sold 1,400 shares of the business’s stock in a transaction that occurred on Friday, February 13th. The shares were sold at an average price of $105.71, for a total value of $147,994.00. Following the completion of the transaction, the insider directly 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. Additional details regarding this sale are available in the official SEC disclosure. In the last quarter, insiders sold 16,237 shares of company stock worth $1,697,162. Insiders own 0.34% of the company’s stock.

Trending Headlines about ServiceNow

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: Benchmark initiated coverage with a Buy and a $125 price target, arguing the selloff creates a compelling entry point for long‑term investors. Benchmark Initiates Coverage
• Positive Sentiment: Morgan Stanley reiterated a Buy and a high $210 target, highlighting resilient growth, AI monetization potential, and accretive dealmaking as long‑term supports. Morgan Stanley Maintains Buy
• Positive Sentiment: ServiceNow expanded its partnership with NVIDIA to operationalize AI workflows (AI Control Tower + NVIDIA Enterprise AI Factory), which supports the company’s AI roadmap and total addressable market narrative. ServiceNow Expands Partnership With NVIDIA
• Positive Sentiment: ServiceNow boosted liquidity with a new $3 billion unsecured revolving credit facility and commercial paper programs, reducing short‑term financing risk ahead of earnings. ServiceNow Boosts Liquidity
• Neutral Sentiment: ServiceNow set April 22 as the date to report Q1 results — a near‑term catalyst that could either validate or widen the recent reassessment of growth expectations. Q1 Earnings Date Announced
• Neutral Sentiment: Company leadership moves (appointment of Kulmeet Bawa as MD & GVP, India/SAARC) and partner integrations (BigPanda) reflect ongoing GTM and ecosystem activity but are unlikely to swing near‑term sentiment materially. ServiceNow Appoints Kulmeet Bawa
• Negative Sentiment: Stifel cut its price target to $135 (from $180), citing weaker U.S. federal spending and softer Q1 trends — the downgrade of expectations for government demand is being cited as a direct reason for recent selling pressure. Stifel Lowers Price Target to $135
• Negative Sentiment: Analyst and media pieces highlight secular challenges — AI‑native competitors, doubts about switching costs, and a large YTD decline — which keep investor skepticism elevated despite product progress. These narratives are pressuring multiples and share price. Fool: AI Competition Concerns

Hedge Funds Weigh In On ServiceNow

Several large investors have recently made changes to their positions in NOW. Vanguard Group Inc. raised its position in shares of ServiceNow by 404.5% in the fourth quarter. Vanguard Group Inc. now owns 101,963,384 shares of the information technology services provider’s stock worth $15,619,771,000 after acquiring an additional 81,752,460 shares during the period. State Street Corp grew its position in shares of ServiceNow by 406.6% during the 4th quarter. State Street Corp now owns 47,896,597 shares of the information technology services provider’s stock valued at $7,337,280,000 after acquiring an additional 38,441,898 shares during the period. Price T Rowe Associates Inc. MD increased its stake in shares of ServiceNow by 371.0% in the 4th quarter. Price T Rowe Associates Inc. MD now owns 32,395,663 shares of the information technology services provider’s stock valued at $4,962,692,000 after purchasing an additional 25,517,218 shares in the last quarter. Geode Capital Management LLC increased its stake in shares of ServiceNow by 404.8% in the 4th quarter. Geode Capital Management LLC now owns 23,512,428 shares of the information technology services provider’s stock valued at $3,591,425,000 after purchasing an additional 18,854,775 shares in the last quarter. Finally, Morgan Stanley raised its holdings in ServiceNow by 335.6% in the 4th quarter. Morgan Stanley now owns 22,733,483 shares of the information technology services provider’s stock worth $3,482,543,000 after purchasing an additional 17,514,679 shares during the period. 87.18% of the stock is currently owned by institutional investors and hedge funds.

ServiceNow Stock Down 2.0%

The company has a market cap of $106.67 billion, a PE ratio of 61.14, a P/E/G ratio of 1.74 and a beta of 1.01. The business has a 50-day simple moving average of $111.06 and a 200-day simple moving average of $147.99. The company has a quick ratio of 1.00, a current ratio of 1.00 and a debt-to-equity ratio of 0.12.

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