ServiceNow (NYSE:NOW) Stock Price Down 2.4% – Time to Sell?

ServiceNow, Inc. (NYSE:NOW)’s share price was down 2.4% on Wednesday . The stock traded as low as $130.85 and last traded at $131.04. 10,261,993 shares traded hands during trading, a decline of 56% from the average session volume of 23,173,057 shares. The stock had previously closed at $134.21.

Key Headlines Impacting ServiceNow

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: Needham raises target and initiates Buy rating: Needham & Company lifted its ServiceNow price target from $115 to $155 and assigned a “buy” rating, implying approximately 17.9% potential upside from the referenced price. The forecast is likely the most direct catalyst behind the stock’s strength. ServiceNow To Rally More Than 18%? Here Are 10 Top Analyst Forecasts For Friday
• Positive Sentiment: AI adoption is accelerating: ServiceNow’s AI annual contract value surpassed $1 billion in the second quarter, while customer production deployments reportedly increased ninefold in nine months. This supports the company’s positioning in enterprise and “agentic” AI and could strengthen long-term growth expectations. ServiceNow: The Agentic AI Frontier
• Positive Sentiment: Broader analyst support: BTIG also indicated that ServiceNow’s stock is expected to rise, adding to the favorable sell-side sentiment. ServiceNow Stock Price Expected to Rise
• Neutral Sentiment: AI visibility and partnerships: ServiceNow is partnering with Fortune on an AI summit and was named a finalist for an AFP Pinnacle Award. RoboMQ also launched an identity-governance application on the ServiceNow Store. These developments reinforce ecosystem visibility but are unlikely to materially affect near-term revenue. Fortune AIQ Summit Partnership
• Negative Sentiment: Execution and valuation risks remain: Agentic AI revenue is projected to grow rapidly but remains a small portion of overall sales, meaning the investment case still depends on substantial future adoption. ServiceNow also trades at a high earnings multiple, leaving the stock sensitive to any slowdown in growth or AI monetization.

Analyst Ratings Changes

A number of research firms have recently issued reports on NOW. TD Cowen reiterated a “buy” rating and issued a $140.00 target price on shares of ServiceNow in a research note on Monday, August 17th. DA Davidson set a $170.00 price target on ServiceNow and gave the stock a “buy” rating in a research report on Monday, July 20th. Wells Fargo & Company reaffirmed an “overweight” rating and set a $175.00 price target (up from $160.00) on shares of ServiceNow in a report on Wednesday, August 12th. Evercore reiterated an “outperform” rating and issued a $160.00 price objective on shares of ServiceNow in a research report on Thursday, July 23rd. Finally, Weiss Ratings raised ServiceNow from a “sell (d+)” rating to a “hold (c-)” rating in a research note on Thursday, August 20th. One research 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 stock. Based on data from MarketBeat, ServiceNow presently has a consensus rating of “Moderate Buy” and an average price target of $145.71.

ServiceNow Trading Up 1.2%

The company has a quick ratio of 0.70, a current ratio of 0.70 and a debt-to-equity ratio of 0.43. The firm has a market cap of $137.28 billion, a price-to-earnings ratio of 82.91, a price-to-earnings-growth ratio of 2.39 and a beta of 0.97. The business’s fifty day moving average is $119.74 and its two-hundred day moving average is $108.75.

ServiceNow (NYSE:NOW) last posted its quarterly earnings data on Wednesday, July 22nd. The information technology services provider reported $0.90 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.86 by $0.04. The firm had revenue of $3.99 billion for the quarter, compared to the consensus estimate of $3.93 billion. ServiceNow had a return on equity of 16.45% and a net margin of 11.34%.The business’s revenue for the quarter was up 24.0% compared to the same quarter last year. During the same quarter in the prior year, the business earned $0.81 EPS. Equities analysts anticipate that ServiceNow, Inc. will post 2.24 earnings per share for the current fiscal year.

Insider Activity

In other ServiceNow news, insider Jacqueline P. Canney sold 7,847 shares of the business’s stock in a transaction dated Friday, August 28th. The stock was sold at an average price of $138.00, for a total transaction of $1,082,886.00. Following the completion of the sale, the insider directly owned 30,042 shares of the company’s stock, valued at approximately $4,145,796. The trade was a 20.71% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Paul Chamberlain sold 2,700 shares of the company’s stock in a transaction dated Thursday, August 27th. The shares were sold at an average price of $135.50, for a total transaction of $365,850.00. Following the transaction, the director owned 43,990 shares in the company, valued at approximately $5,960,645. The trade was a 5.78% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 14,081 shares of company stock valued at $1,937,904 over the last 90 days. 0.34% of the stock is owned by company insiders.

Institutional Investors Weigh In On ServiceNow

Institutional investors have recently modified their holdings of the business. California State Teachers Retirement System grew its holdings 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 worth $15,338,369,000 after acquiring an additional 152,963,494 shares during the period. BlackRock Inc. bought a new position in shares of ServiceNow in the 2nd quarter worth $9,536,615,000. State Street Corp boosted its position in shares of ServiceNow by 406.6% in the 4th 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 grew its stake in shares of ServiceNow by 371.0% during 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 period. Finally, Geode Capital Management LLC grew its stake 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. Institutional investors and hedge funds own 87.18% of the company’s stock.

About ServiceNow

ServiceNow, Inc is a cloud-based enterprise software company that provides digital workflow and automation solutions. Its Now Platform enables organizations to manage and connect business processes across information technology, customer service, human resources, finance, legal operations and other departments.

The company’s products and services include IT service management, IT operations management, customer service management, human resources service delivery, security operations, risk and compliance management, strategic portfolio management and application development tools.