Key Points
- ServiceNow director Paul Edward Chamberlain sold 1,500 shares for approximately $188,400 at an average price of $125.60. The transaction was made under a pre-arranged Rule 10b5-1 plan, leaving him with 46,690 shares.
- ServiceNow reported quarterly earnings of $0.90 per share, beating estimates of $0.86, while revenue rose 24% year over year to $3.99 billion.
- Analysts maintain a generally positive outlook, with a consensus “Moderate Buy” rating and a $143.76 target price, although the stock’s elevated valuation and software-sector weakness remain concerns.
ServiceNow, Inc. (NYSE:NOW - Get Free Report) Director Paul Edward Chamberlain sold 1,500 shares of ServiceNow stock in a transaction on Thursday, August 13th. The shares were sold at an average price of $125.60, for a total transaction of $188,400.00. Following the completion of the sale, the director directly owned 46,690 shares of the company's stock, valued at approximately $5,864,264. The trade was a 3.11% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.
ServiceNow Stock Performance
Shares of NOW stock opened at $117.70 on Tuesday. The company has a current ratio of 0.70, a quick ratio of 0.70 and a debt-to-equity ratio of 0.43. The firm has a fifty day simple moving average of $107.15 and a two-hundred day simple moving average of $105.49. ServiceNow, Inc. has a 12 month low of $81.24 and a 12 month high of $194.73. The firm has a market capitalization of $121.70 billion, a PE ratio of 73.56, a price-to-earnings-growth ratio of 2.18 and a beta of 0.94.
ServiceNow (NYSE:NOW - Get Free Report) last released its quarterly earnings data on Wednesday, July 22nd. The information technology services provider reported $0.90 earnings per share for the quarter, beating analysts' consensus estimates of $0.86 by $0.04. The firm had revenue of $3.99 billion for the quarter, compared to analyst estimates of $3.93 billion. ServiceNow had a net margin of 11.34% and a return on equity of 16.45%. The business's quarterly revenue was up 24.0% compared to the same quarter last year. During the same period last year, the firm earned $0.81 earnings per share. Analysts forecast that ServiceNow, Inc. will post 2.24 EPS for the current fiscal year.
Analyst Ratings Changes
A number of research firms have issued reports on NOW. Robert W. Baird lifted their price target on ServiceNow from $118.00 to $125.00 and gave the company an "outperform" rating in a research note on Thursday, July 23rd. BMO Capital Markets increased their price objective on ServiceNow from $115.00 to $118.00 and gave the stock an "outperform" rating in a research note on Thursday, July 23rd. CLSA began coverage on ServiceNow in a report on Monday, July 20th. They issued an "underperform" rating and a $72.00 target price on the stock. Morgan Stanley set a $180.00 price target on ServiceNow in a report on Tuesday, July 21st. Finally, Wolfe Research set a $125.00 price target on ServiceNow in a research report on Thursday, April 23rd. One research analyst has rated the stock with a Strong Buy rating, thirty-six have given a Buy rating, two have assigned a Hold rating and three have assigned a Sell rating to the stock. Based on data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price of $143.76.
Check Out Our Latest Stock Analysis on NOW
Hedge Funds Weigh In On ServiceNow
Several institutional investors have recently modified their holdings of NOW. Wealth Watch Advisors INC bought a new stake in ServiceNow during the third quarter worth $29,000. Kelleher Financial Advisors bought a new position in ServiceNow in the 3rd quarter valued at $50,000. Pin Oak Investment Advisors Inc. grew its stake in ServiceNow by 20.7% in the 3rd quarter. Pin Oak Investment Advisors Inc. now owns 134 shares of the information technology services provider's stock valued at $123,000 after purchasing an additional 23 shares during the period. Jupiter Wealth Management LLC purchased a new stake in shares of ServiceNow during the 2nd quarter valued at $154,000. Finally, CBIZ Investment Advisory Services LLC increased its position in shares of ServiceNow by 540.0% during the 4th quarter. CBIZ Investment Advisory Services LLC now owns 160 shares of the information technology services provider's stock valued at $25,000 after purchasing an additional 135 shares during the last quarter. 87.18% of the stock is owned by institutional investors.
ServiceNow News Roundup
Here are the key news stories impacting ServiceNow this week:
- Positive Sentiment: Cybersecurity expansion supports long-term growth. ServiceNow’s planned $7.75 billion acquisition of Armis would broaden its AI-powered security platform and strengthen its preventive cyber-defense offerings. The appointment of former Armis executive Simon Mouyal as chief marketing officer also signals an increased focus on security and go-to-market execution. ServiceNow Is Spending $7.75 Billion On AI Security
- Positive Sentiment: Analyst support remains firm. TD Cowen reaffirmed its Buy rating and assigned a $140 price target, implying meaningful upside from the referenced market level. Analysts cited ServiceNow’s expanding security platform, AI workflow opportunities and recurring-revenue model. ServiceNow Earns Buy Rating
- Positive Sentiment: Fundamentals and AI momentum continue to attract dip buyers. Recent commentary points to roughly 24% year-over-year revenue growth and a substantial rebound from the stock’s lows. Some investors view support near the 200-day moving average as an opportunity if the company’s growth remains intact. NOW Stock Has Rebounded Over 54%
- Neutral Sentiment: Institutional positioning is mixed. JPMorgan added a large position, while T. Rowe Price, Wellington Management and several other firms reduced holdings. The split suggests continued disagreement about valuation and the pace of the recovery.
- Neutral Sentiment: A director sold shares under a pre-arranged Rule 10b5-1 plan. Paul Edward Chamberlain sold 1,500 shares worth approximately $188,400, reducing his holdings by 3.11%. Because the transaction was scheduled in advance, it provides limited evidence of a change in the company’s outlook. SEC Insider Filing
- Negative Sentiment: Valuation remains a major concern. Even after a reported 30.5% decline over the past year, commentary argues that ServiceNow still does not look inexpensive, leaving the stock vulnerable to further pressure if growth expectations soften. ServiceNow Stock Still Looks Expensive
- Negative Sentiment: Broad software-sector weakness is weighing on the shares. Investors have been rotating toward semiconductor and AI-hardware stocks, pressuring software names including ServiceNow, Adobe and Intuit. The sizable Armis acquisition also introduces execution, integration and spending risks.
ServiceNow Company Profile
(
Get Free Report)
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.
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