ServiceNow (NYSE:NOW) Stock Price Down 1.3% – Here’s What Happened

Shares of ServiceNow, Inc. (NYSE:NOW) dropped 1.3% during trading on Wednesday . The company traded as low as $152.01 and last traded at $152.4250. Approximately 3,896,300 shares changed hands during mid-day trading, a decline of 53% from the average daily volume of 8,352,282 shares. The stock had previously closed at $154.36.

ServiceNow News Summary

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: Strategic cyber/AI expansion — ServiceNow agreed to buy Armis to build a unified cyber exposure and security stack across IT, OT and medical devices, positioning NOW to capture more security spending tied to AI risk management. ServiceNow to acquire Armis (Business Wire)
• Positive Sentiment: Analyst support — Raymond James reiterated a Buy and called the Armis deal accretive, saying it strengthens ServiceNow’s security and OT growth runway, which could support valuation over time. Raymond James maintains Buy (TipRanks)
• Positive Sentiment: Leadership continuity — ServiceNow extended CEO Bill McDermott’s employment agreement (through 2030) and updated severance policy, which reduces leadership uncertainty during the integration. CEO contract extension (TipRanks)
• Neutral Sentiment: Deal mechanics and timing — The acquisition is a $7.75 billion all-cash agreement expected to close in the second half of 2026; integration and regulatory approval timelines remain material to outcomes. Deal announced, timing and terms (Reuters)
• Neutral Sentiment: Management messaging — ServiceNow executives (McDermott and Amit Zavery) have publicly explained the strategic rationale for Armis in interviews, helping frame the deal as a long-term growth play rather than a short-term revenue boost. Executive interviews on deal rationale (Bloomberg/YouTube)
• Negative Sentiment: Near-term stock reaction — Shares slid after the announcement as investors digested the price and all-cash nature of the deal; some outlets reported a multi-percent drop immediately post-announcement. Stock slipped after confirmation (GuruFocus)
• Negative Sentiment: Valuation and overpay concerns — Critics argue $7.75B may represent a rich price with limited near-term synergies, raising worries about ROIC, dilution of cash reserves and execution risk on integrating Armis. Overpay/synergy concerns (Seeking Alpha)

Analyst Upgrades and Downgrades

NOW has been the topic of a number of research reports. Guggenheim raised shares of ServiceNow from a “sell” rating to a “neutral” rating in a research report on Tuesday, December 16th. Barclays upped their target price on ServiceNow from $242.00 to $245.00 and gave the company an “overweight” rating in a research report on Thursday, October 30th. Piper Sandler reaffirmed an “overweight” rating and issued a $230.00 price target on shares of ServiceNow in a report on Thursday, October 30th. Sanford C. Bernstein reaffirmed an “outperform” rating and set a $218.60 target price on shares of ServiceNow in a report on Thursday, October 30th. Finally, Mizuho set a $210.00 price target on shares of ServiceNow in a report on Tuesday, December 16th. Two equities research analysts have rated the stock with a Strong Buy rating, thirty-two have assigned a Buy rating, six have assigned a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, ServiceNow presently has an average rating of “Moderate Buy” and an average price target of $225.09.

ServiceNow Stock Down 1.3%

The company has a market cap of $158.28 billion, a price-to-earnings ratio of 92.16, a PEG ratio of 3.26 and a beta of 0.97. The business has a fifty day moving average of $170.92 and a two-hundred day moving average of $182.54. The company has a current ratio of 1.06, a quick ratio of 1.06 and a debt-to-equity ratio of 0.13.

Insider Transactions at ServiceNow

In other news, insider Paul Fipps sold 1,525 shares of ServiceNow stock in a transaction dated Tuesday, November 18th. The shares were sold at an average price of $163.51, for a total value of $249,352.75. Following the sale, the insider owned 2,705 shares in the company, valued at $442,294.55. This trade represents a 36.05% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, Director Lawrence Jackson sold 1,325 shares of the business’s stock in a transaction dated Friday, November 28th. The stock was sold at an average price of $162.04, for a total transaction of $214,708.30. Following the sale, the director directly owned 1,615 shares of the company’s stock, valued at $261,701.06. This represents a 45.07% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 15,310 shares of company stock worth $2,533,585 in the last ninety days. Company insiders own 0.34% of the company’s stock.

Institutional Trading of ServiceNow

Institutional investors have recently made changes to their positions in the company. Norges Bank purchased a new position in ServiceNow in the 2nd quarter valued at $2,589,235,000. Parnassus Investments LLC purchased a new position in shares of ServiceNow in the first quarter worth about $519,806,000. Amundi boosted its position in ServiceNow by 61.9% during the first quarter. Amundi now owns 1,638,927 shares of the information technology services provider’s stock worth $1,269,777,000 after acquiring an additional 626,623 shares during the last quarter. Bessemer Group Inc. grew its stake in ServiceNow by 365.6% during the 2nd quarter. Bessemer Group Inc. now owns 529,994 shares of the information technology services provider’s stock valued at $544,875,000 after acquiring an additional 416,162 shares in the last quarter. Finally, Vanguard Group Inc. raised its holdings in ServiceNow by 2.0% in the 2nd quarter. Vanguard Group Inc. now owns 19,895,063 shares of the information technology services provider’s stock valued at $20,453,716,000 after acquiring an additional 398,071 shares during the last quarter. 87.18% of the stock is owned by institutional investors and hedge funds.

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.