Key Points
- ServiceNow insider Jacqueline Canney sold 1,289 shares for about $131,091 under a pre-arranged Rule 10b5-1 plan to cover tax withholding on vested equity awards; she retained 30,042 shares.
- In its latest quarter, ServiceNow reported revenue of $4.11 billion, up 20.5% year over year and above estimates, while earnings per share of $1.00 narrowly missed the $1.02 consensus.
- Analysts’ average rating is Moderate Buy, with an average price target of $154.50; the article also notes pressure on software shares amid concerns about competition from new AI tools.
ServiceNow, Inc. (NYSE:NOW - Get Free Report) insider Jacqueline Canney sold 1,289 shares of ServiceNow stock in a transaction dated Monday, November 9th. The stock was sold at an average price of $101.70, for a total value of $131,091.30. Following the transaction, the insider directly owned 30,042 shares in the company, valued at approximately $3,055,271.40. The trade was a 4.11% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards.
ServiceNow Price Performance
Shares of NYSE NOW opened at $99.35 on Wednesday. ServiceNow, Inc. has a twelve month low of $81.24 and a twelve month high of $175.00. The company has a current ratio of 0.72, a quick ratio of 0.72 and a debt-to-equity ratio of 0.42. The company has a market capitalization of $103.13 billion, a price-to-earnings ratio of 71.48, a PEG ratio of 2.01 and a beta of 1.00. The firm has a 50-day moving average of $134.49 and a two-hundred day moving average of $114.55.
ServiceNow (NYSE:NOW - Get Free Report) last posted its quarterly earnings data on Wednesday, October 28th. The information technology services provider reported $1.00 earnings per share for the quarter, missing the consensus estimate of $1.02 by ($0.02). The business had revenue of $4.11 billion for the quarter, compared to the consensus estimate of $4.09 billion. ServiceNow had a net margin of 9.36% and a return on equity of 15.17%. The business's revenue for the quarter was up 20.5% on a year-over-year basis. During the same quarter last year, the business posted $4.82 EPS. As a group, analysts expect that ServiceNow, Inc. will post 2.12 earnings per share for the current fiscal year.
Analyst Upgrades and Downgrades
A number of brokerages recently weighed in on NOW. DA Davidson set a $170.00 target price on shares of ServiceNow and gave the stock a "buy" rating in a report on Monday, July 20th. Guggenheim reiterated a "buy" rating and set a $175.00 price objective (up from $125.00) on shares of ServiceNow in a research report on Friday, October 23rd. CLSA assumed coverage on ServiceNow in a research report on Monday, July 20th. They set an "underperform" rating and a $72.00 price objective for the company. Barclays set a $152.00 price objective on ServiceNow and gave the stock an "overweight" rating in a research note on Thursday, October 29th. Finally, Citigroup decreased their target price on ServiceNow from $170.00 to $157.00 and set a "buy" rating on the stock in a report on Thursday, October 29th. One analyst has rated the stock with a Strong Buy rating, thirty-six have issued a Buy rating, three have issued a Hold rating and three have given a Sell rating to the company's stock. Based on data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and an average price target of $154.50.
Get Our Latest Stock Report on NOW
Institutional Investors Weigh In On ServiceNow
A number of large investors have recently made changes to their positions in NOW. Focus Advisor Solutions LLC lifted its holdings in shares of ServiceNow by 49.3% in the third quarter. Focus Advisor Solutions LLC now owns 34,451 shares of the information technology services provider's stock valued at $4,617,000 after purchasing an additional 11,380 shares in the last quarter. Colonial Trust Co SC grew its holdings in shares of ServiceNow by 18.9% during the third quarter. Colonial Trust Co SC now owns 4,643 shares of the information technology services provider's stock valued at $622,000 after buying an additional 738 shares in the last quarter. Checchi Capital Advisers LLC grew its holdings in shares of ServiceNow by 7.4% during the third quarter. Checchi Capital Advisers LLC now owns 5,546 shares of the information technology services provider's stock valued at $743,000 after buying an additional 380 shares in the last quarter. Independent Advisor Alliance raised its position in ServiceNow by 2.9% during the third quarter. Independent Advisor Alliance now owns 72,068 shares of the information technology services provider's stock valued at $9,273,000 after buying an additional 2,032 shares during the period. Finally, Z3 Capital Partners LLC raised its position in ServiceNow by 29.5% during the third quarter. Z3 Capital Partners LLC now owns 17,380 shares of the information technology services provider's stock valued at $2,329,000 after buying an additional 3,960 shares during the period. Institutional investors and hedge funds own 87.18% of the company's stock.
Key Headlines Impacting ServiceNow
Here are the key news stories impacting ServiceNow this week:
- Positive Sentiment: Kyndryl and ServiceNow launched a jointly developed autonomous-operations offering on the ServiceNow Store. The AI-powered product is designed to improve productivity and automate IT issue resolution, supporting the case for ServiceNow’s AI opportunity. Kyndryl expands partnership with ServiceNow
- Positive Sentiment: Broward County, Florida, has gone live with ServiceNow’s IT Service Management and Workflow Data Fabric, providing a concrete public-sector deployment that may help demonstrate customer adoption of its workflow platform. Broward County selects ServiceNow
- Neutral Sentiment: Institutional ownership reports were mixed: 71 West Capital Partners increased its stake, while Alps Advisors reduced its position. These filings reflect differing investor views and may have limited near-term significance. 71 West Capital Partners increases stake
- Negative Sentiment: Shares weakened as Anthropic introduced new Claude tools, renewing fears that AI products could intensify competition or erode demand for enterprise software. The concern is part of a broader slide in software stocks. ServiceNow stock drops amid Anthropic’s new AI tools
- Negative Sentiment: Reports describe a steep recent decline, with investors still reacting to the October quarterly results: revenue exceeded estimates and grew year over year, but EPS came in slightly below consensus. A Pomerantz law firm investigation into potential investor claims adds another source of uncertainty, although an investigation is not a finding of wrongdoing. Pomerantz investigation notice
ServiceNow Company Profile
(
Get Free Report)
ServiceNow, Inc. provides cloud-based software that helps organizations manage digital workflows and automate business processes. Founded in 2004 by Fred Luddy, the company began with a focus on IT service management and has expanded its platform to support a range of enterprise operations. Its products include tools for IT service and operations management, customer service, human resources, security, and application development. ServiceNow also offers artificial intelligence capabilities, including tools designed to help organizations automate tasks and find information across workflows.
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