Key Points
- ServiceNow insider Jacqueline Canney sold 7,847 shares at an average price of $138, generating approximately $1.08 million. The transaction was made under a pre-arranged Rule 10b5-1 plan, leaving her with 30,042 shares.
- ServiceNow reported quarterly EPS of $0.90 and revenue of $3.99 billion, exceeding estimates of $0.86 and $3.93 billion, respectively. Revenue grew 24% year over year, supported by momentum in AI-related contracts.
- Institutional investors own 87.18% of the company, while analysts maintain a consensus “Moderate Buy” rating with an average price target of $144.24. Shares were recently trading down 3.6% amid broader software-market weakness and geopolitical concerns.
ServiceNow, Inc. (NYSE:NOW - Get Free Report) insider Paul Fipps sold 2,034 shares of the business's stock in a transaction dated Monday, August 31st. The stock was sold at an average price of $147.87, for a total transaction of $300,767.58. Following the completion of the transaction, the insider owned 18,305 shares of the company's stock, valued at $2,706,760.35. This represents a 10.00% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through this hyperlink.
ServiceNow Stock Performance
NOW stock opened at $142.69 on Wednesday. ServiceNow, Inc. has a one year low of $81.24 and a one year high of $194.73. The firm has a market cap of $147.54 billion, a price-to-earnings ratio of 89.18, a PEG ratio of 2.60 and a beta of 0.97. The company has a debt-to-equity ratio of 0.43, a quick ratio of 0.70 and a current ratio of 0.70. The firm has a 50-day simple moving average of $114.37 and a two-hundred day simple moving average of $107.20.
ServiceNow (NYSE:NOW - Get Free Report) last issued its quarterly earnings data on Wednesday, July 22nd. The information technology services provider reported $0.90 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.86 by $0.04. ServiceNow had a net margin of 11.34% and a return on equity of 16.45%. The firm had revenue of $3.99 billion for the quarter, compared to the consensus estimate of $3.93 billion. During the same quarter in the previous year, the firm earned $0.81 EPS. The company's quarterly revenue was up 24.0% compared to the same quarter last year. On average, equities analysts forecast that ServiceNow, Inc. will post 2.24 EPS for the current fiscal year.
Key ServiceNow News
Here are the key news stories impacting ServiceNow this week:
- Positive Sentiment: Investor sentiment is supported by reports that ServiceNow’s AI-related contracts have surpassed $1 billion. The company’s latest quarterly results also exceeded expectations, with EPS of $0.90 versus the $0.86 consensus and revenue of $3.99 billion versus $3.93 billion expected; revenue increased 24% year over year. ServiceNow Stock Surges Nearly 5% as AI Revenue Reaches $1 Billion Benchmark
- Positive Sentiment: A rebound in software stocks is helping ServiceNow. Recent enterprise-software earnings have eased concerns that generative AI will displace traditional applications, instead suggesting that AI may increase demand for automation and workflow tools. The SaaSpocalypse Trade Is Cracking
- Neutral Sentiment: Analysts remain moderately optimistic despite ServiceNow’s weaker performance than some software peers. Comparisons with Salesforce, UiPath and Fujitsu emphasize NOW’s strong enterprise position, while noting that competition and the profitability of agentic AI adoption remain important risks. ServiceNow Stock Performance Compared With Peers
- Negative Sentiment: Several insiders have recently sold shares. Director Paul Edward Chamberlain sold 2,700 shares for about $365,850, while executives Jacqueline Canney and Paul Fipps sold approximately $1.08 million and $301,000, respectively. Canney’s transaction was conducted under a pre-arranged Rule 10b5-1 plan, which reduces its significance as a discretionary bearish signal, but the cluster of sales may still weigh on sentiment. SEC Insider Filing
- Negative Sentiment: Escalating geopolitical tensions and overall market weakness have pressured software stocks, creating a near-term headwind for NOW despite its company-specific AI catalysts. ServiceNow Stock Slips
Hedge Funds Weigh In On ServiceNow
A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the company. California State Teachers Retirement System grew its stake in ServiceNow by 9,980.9% during the 2nd quarter. California State Teachers Retirement System now owns 154,496,061 shares of the information technology services provider's stock valued at $15,338,369,000 after purchasing an additional 152,963,494 shares during the last quarter. BlackRock Inc. acquired a new position in shares of ServiceNow in the second quarter valued at about $9,536,615,000. State Street Corp raised its stake in shares of ServiceNow by 406.6% in the fourth quarter. State Street Corp now owns 47,896,597 shares of the information technology services provider's stock worth $7,337,280,000 after purchasing an additional 38,441,898 shares during the last quarter. Price T Rowe Associates Inc. MD raised its stake in shares of ServiceNow by 371.0% in the fourth quarter. Price T Rowe Associates Inc. MD now owns 32,395,663 shares of the information technology services provider's stock worth $4,962,692,000 after purchasing an additional 25,517,218 shares during the last quarter. Finally, Geode Capital Management LLC lifted its holdings in shares of ServiceNow by 404.8% during the fourth quarter. Geode Capital Management LLC now owns 23,512,428 shares of the information technology services provider's stock worth $3,591,425,000 after purchasing an additional 18,854,775 shares during the period. Hedge funds and other institutional investors own 87.18% of the company's stock.
Analysts Set New Price Targets
Several analysts have recently commented on NOW shares. Piper Sandler reiterated an "overweight" rating and set a $140.00 price objective on shares of ServiceNow in a report on Thursday, July 23rd. Bank of America boosted their target price on ServiceNow from $130.00 to $150.00 and gave the stock a "buy" rating in a research note on Wednesday, August 19th. Robert W. Baird increased 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. JPMorgan Chase & Co. raised their price target on ServiceNow from $145.00 to $150.00 and gave the stock an "overweight" rating in a report on Thursday, July 23rd. Finally, Jefferies Financial Group restated a "buy" rating and set a $140.00 price target (up from $135.00) on shares of ServiceNow in a research note on Thursday, July 23rd. One analyst has rated the stock with a Strong Buy rating, thirty-six have given a Buy rating, three have assigned a Hold rating and two have issued a Sell rating to the company. According to MarketBeat, ServiceNow currently has an average rating of "Moderate Buy" and a consensus target price of $144.24.
Check Out Our Latest Stock Analysis on NOW
About ServiceNow
(
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.
Further Reading
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