ServiceNow (NYSE:NOW) Stock Price Up 2.2% – Time to Buy?

ServiceNow, Inc. (NYSE:NOW)’s stock price traded up 2.2% during mid-day trading on Wednesday . The company traded as high as $105.40 and last traded at $102.1450. 27,513,593 shares traded hands during trading, an increase of 22% from the average session volume of 22,499,180 shares. The stock had previously closed at $99.92.

Trending Headlines about ServiceNow

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: ServiceNow is being viewed as a key beneficiary of agentic AI, with investors rewarding its workflow-orchestration platform and AI product strategy. What Exactly Is Agentic AI, and Why Are Some Stocks Blowing Up Because of It?
• Positive Sentiment: Snowflake’s strong earnings helped lift software stocks broadly, reinforcing the view that AI is boosting, not replacing, enterprise software demand. ServiceNow Stock (NOW) Gets a Boost from Snowflake Earnings
• Positive Sentiment: Dell’s strong AI-server results also supported a sector-wide rebound in software and AI-related names, including ServiceNow. ServiceNow Soars 14% on Enterprise AI Rotation as Dell’s Blowout Earnings Lift Software Sector
• Positive Sentiment: ServiceNow announced an expanded AI partnership with Wipro, which could help drive enterprise workflow automation adoption. Wipro stock gains 4%: can its ServiceNow tie-up drive growth?

Wall Street Analysts Forecast Growth

A number of brokerages have recently issued reports on NOW. Barclays reaffirmed an “overweight” rating and set a $134.00 target price (up from $132.00) on shares of ServiceNow in a research report on Tuesday, May 5th. Royal Bank Of Canada reissued an “outperform” rating and set a $121.00 target price on shares of ServiceNow in a research note on Tuesday, May 5th. Wall Street Zen cut ServiceNow from a “buy” rating to a “hold” rating in a research note on Saturday, February 28th. Argus lowered their target price on shares of ServiceNow from $180.00 to $134.00 and set a “buy” rating on the stock in a research report on Friday, April 24th. Finally, Sanford C. Bernstein reissued an “outperform” rating and issued a $236.00 price target (up from $226.00) on shares of ServiceNow in a research report on Wednesday, May 6th. Two research analysts have rated the stock with a Strong Buy rating, thirty-five have issued a Buy rating, five have issued a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus price target of $141.85.

ServiceNow Price Performance

The stock has a market cap of $128.42 billion, a price-to-earnings ratio of 73.96, a P/E/G ratio of 1.69 and a beta of 0.82. The stock’s 50 day simple moving average is $97.84 and its two-hundred day simple moving average is $123.73. The company has a debt-to-equity ratio of 0.13, a current ratio of 0.84 and a quick ratio of 0.84.

ServiceNow (NYSE:NOW) last released its quarterly earnings data on Wednesday, April 22nd. The information technology services provider reported $0.97 earnings per share for the quarter, meeting the consensus estimate of $0.97. The company had revenue of $3.77 billion for the quarter, compared to analyst estimates of $3.75 billion. ServiceNow had a return on equity of 18.16% and a net margin of 12.59%.The company’s revenue was up 22.1% compared to the same quarter last year. During the same period in the prior year, the company posted $0.81 EPS. On average, analysts forecast that ServiceNow, Inc. will post 2.35 earnings per share for the current fiscal year.

Insider Activity

In related news, Director Paul Edward Chamberlain sold 1,500 shares of the firm’s stock in a transaction on Thursday, May 14th. The stock was sold at an average price of $87.23, for a total transaction of $130,845.00. Following the completion of the sale, the director directly owned 44,930 shares of the company’s stock, valued at $3,919,243.90. This trade represents a 3.23% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Anita M. Sands sold 16,445 shares of the business’s stock in a transaction on Thursday, May 14th. The stock was sold at an average price of $90.14, for a total value of $1,482,352.30. Following the completion of the transaction, the director directly owned 30,090 shares in the company, valued at approximately $2,712,312.60. This represents a 35.34% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last three months, insiders have sold 28,071 shares of company stock worth $2,529,956. 0.34% of the stock is currently owned by insiders.

Institutional Investors Weigh In On ServiceNow

Several hedge funds and other institutional investors have recently added to or reduced their stakes in NOW. Brighton Jones LLC boosted its position in ServiceNow by 1.1% in the 4th quarter. Brighton Jones LLC now owns 2,753 shares of the information technology services provider’s stock valued at $2,919,000 after buying an additional 30 shares during the last quarter. Sivia Capital Partners LLC increased its position in ServiceNow by 4.2% in the second quarter. Sivia Capital Partners LLC now owns 837 shares of the information technology services provider’s stock worth $861,000 after purchasing an additional 34 shares during the period. United Bank raised its holdings in ServiceNow by 15.5% during the 2nd quarter. United Bank now owns 1,519 shares of the information technology services provider’s stock worth $1,562,000 after purchasing an additional 204 shares during the last quarter. Riggs Asset Managment Co. Inc. lifted its position in ServiceNow by 2.2% during the 2nd quarter. Riggs Asset Managment Co. Inc. now owns 1,922 shares of the information technology services provider’s stock valued at $1,976,000 after purchasing an additional 42 shares during the period. Finally, Nebula Research & Development LLC lifted its position in ServiceNow by 205.1% during the 2nd quarter. Nebula Research & Development LLC now owns 906 shares of the information technology services provider’s stock valued at $931,000 after purchasing an additional 609 shares during the period. Institutional investors and hedge funds own 87.18% of the company’s stock.

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.