ServiceNow’s (NOW) Buy Rating Reaffirmed at BTIG Research

ServiceNow (NYSE:NOW)‘s stock had its “buy” rating restated by research analysts at BTIG Research in a research note issued to investors on Monday, Benzinga reports. They currently have a $170.00 target price on the information technology services provider’s stock. BTIG Research’s target price points to a potential upside of 22.46% from the company’s previous close.

A number of other equities analysts have also recently issued reports on NOW. Bank of America upped their price objective on ServiceNow from $130.00 to $150.00 and gave the stock a “buy” rating in a report on Wednesday, August 19th. Wells Fargo & Company reiterated an “overweight” rating and issued a $175.00 price objective (up from $160.00) on shares of ServiceNow in a report on Wednesday, August 12th. Morgan Stanley set a $180.00 price objective on ServiceNow in a report on Tuesday, July 21st. Evercore reiterated an “outperform” rating and issued a $160.00 price objective on shares of ServiceNow in a report on Thursday, July 23rd. Finally, The Goldman Sachs Group reiterated a “buy” rating on shares of ServiceNow in a report on Monday, August 3rd. One research analyst has rated the stock with a Strong Buy rating, thirty-five have assigned a Buy rating, four have issued a Hold rating and two have assigned a Sell rating to the stock. According to data from MarketBeat, the company has an average rating of “Moderate Buy” and a consensus price target of $149.20.

ServiceNow Price Performance

Shares of NOW traded up $0.22 during midday trading on Monday, reaching $138.83. The stock had a trading volume of 3,945,181 shares, compared to its average volume of 21,596,830. The company’s 50-day moving average is $133.78 and its 200 day moving average is $112.87. ServiceNow has a 12-month low of $81.24 and a 12-month high of $192.97. The company has a current ratio of 0.70, a quick ratio of 0.70 and a debt-to-equity ratio of 0.43. The company has a market capitalization of $143.55 billion, a price-to-earnings ratio of 86.89, a price-to-earnings-growth ratio of 2.58 and a beta of 0.99.

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 analysts’ consensus estimates of $0.86 by $0.04. ServiceNow had a return on equity of 16.45% and a net margin of 11.34%. The firm had revenue of $3.99 billion during the quarter, compared to analysts’ expectations of $3.93 billion. During the same period in the prior year, the business earned $0.81 EPS. The company’s revenue for the quarter was up 24.0% compared to the same quarter last year. On average, equities analysts predict that ServiceNow will post 2.22 EPS for the current fiscal year.

Insider Activity at ServiceNow

In related news, insider Paul Fipps sold 2,034 shares of the 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 sale, the insider directly owned 18,305 shares in the company, valued at $2,706,760.35. This represents a 10.00% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, Director Paul Chamberlain sold 2,700 shares of the stock in a transaction dated Thursday, August 27th. The shares were sold at an average price of $135.50, for a total value of $365,850.00. Following the sale, the director owned 43,990 shares of the company’s stock, valued at $5,960,645. This represents a 5.78% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 14,081 shares of company stock worth $1,937,904 in the last ninety days. 0.34% of the stock is owned by company insiders.

Institutional Investors Weigh In On ServiceNow

Several institutional investors have recently bought and sold shares of NOW. Perpetual Ltd raised its position in ServiceNow by 12.3% during the 3rd quarter. Perpetual Ltd now owns 6,215 shares of the information technology services provider’s stock valued at $833,000 after purchasing an additional 682 shares during the last quarter. Moody National Bank Trust Division raised its position in ServiceNow by 3.9% during the 3rd quarter. Moody National Bank Trust Division now owns 13,038 shares of the information technology services provider’s stock valued at $1,747,000 after purchasing an additional 484 shares during the last quarter. Central Pacific Bank Trust Division raised its position in ServiceNow by 7.0% during the 3rd quarter. Central Pacific Bank Trust Division now owns 19,131 shares of the information technology services provider’s stock valued at $2,564,000 after purchasing an additional 1,259 shares during the last quarter. Defender Capital LLC. bought a new position in ServiceNow during the 3rd quarter valued at approximately $268,000. Finally, First Financial Bank Trust Division bought a new position in ServiceNow during the 3rd quarter valued at approximately $5,511,000. 87.18% of the stock is currently owned by hedge funds and other institutional investors.

More ServiceNow News

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: Analyst support and stronger AI checks: Oppenheimer raised its price target and said ServiceNow appears positioned for a favorable third-quarter result. Other commentary identified NOW as a top software pick, citing potential revenue acceleration in fiscal 2027 as AI, security and usage-based products expand. Improving checks on AI demand and federal business are also supporting the shares. ServiceNow Stock Moves Higher: What’s Going On?
• Positive Sentiment: Three-year Stagwell collaboration: ServiceNow and marketing network Stagwell announced a joint go-to-market strategy to help enterprises build, activate and measure AI-enabled marketing campaigns. The agreement could create additional workflow and marketing-automation opportunities, although financial terms were not disclosed. Stagwell Closes the AI-Marketing Execution Gap with ServiceNow
• Neutral Sentiment: Decagon acquisition speculation ends: ServiceNow denied reports that it was pursuing AI-agent startup Decagon. The denial removes the immediate possibility of a costly transaction, but the episode keeps investor attention focused on whether NOW’s recent multibillion-dollar M&A activity will generate sufficient returns. ServiceNow Denies Reports of Takeover Interest in AI Agent Startup Decagon
• Negative Sentiment: Valuation remains a risk: Despite roughly 24% revenue growth and continued AI investment, analysts and investors are questioning whether cash generation and earnings growth justify ServiceNow’s premium valuation. Higher sales and research spending have contributed to pressure on profitability, making the upcoming quarterly report especially important. ServiceNow Is Growing 24%, but Can Cash Flow Justify Its Valuation?

ServiceNow Company Profile

ServiceNow, Inc is a cloud-based enterprise software company that helps organizations digitize, automate and manage workflows. Its platform connects people, processes and systems across departments, enabling businesses to replace manual, disconnected activities with standardized digital workflows.

The company’s products and services support a range of functions, including information technology service management, IT operations management, customer service, human resources, risk and security operations, and software development.