ServiceNow (NYSE:NOW) Stock Price Up 1.5% – Time to Buy?

ServiceNow, Inc. (NYSE:NOW) was up 1.5% during mid-day trading on Friday. The stock traded as high as $159.50 and last traded at $159.2950. Approximately 11,052,254 shares changed hands during trading, a decline of 48% from the average session volume of 21,363,006 shares. The stock had previously closed at $157.00.

ServiceNow News Summary

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: Bank of America raised its price target to $180 ahead of ServiceNow’s third-quarter results, citing continued demand for AI-related products and services. The revised target signals confidence that AI adoption can support additional growth. Bank of America Boosts ServiceNow Forecast Ahead of Earnings
• Positive Sentiment: ServiceNow’s defense and national-security business is being positioned as a major growth driver over the next year. Management highlighted demand for workflow automation, AI, cybersecurity, logistics modernization and digital transformation among military and government agencies. ServiceNow Defense Business Interview
• Positive Sentiment: The company and Nvidia launched “Arc,” an AI agent designed to plan tasks and verify its work. The product reinforces ServiceNow’s strategy of embedding governed, enterprise-grade AI into its workflow platform, potentially supporting product adoption and customer spending. ServiceNow and Nvidia Launch Arc
• Positive Sentiment: ServiceNow was selected as a preferred idea on CNBC’s “Final Trades,” while Polen Capital highlighted the company’s AI opportunity and revenue-growth prospects. These endorsements add to favorable market sentiment, although they are not substitutes for operating results. ServiceNow on CNBC’s Final Trades
• Neutral Sentiment: Investors are focused on ServiceNow’s upcoming third-quarter earnings, with analysts examining subscription growth, current remaining performance obligations, margins and other operating metrics beyond revenue and EPS. Results and guidance could determine whether the recent rally continues. ServiceNow Q3 Performance Estimates
• Negative Sentiment: Comparisons with TD SYNNEX frame ServiceNow as a less obvious value investment. NOW’s premium valuation means the stock remains sensitive to an earnings or guidance disappointment, despite its strong growth prospects. SNX vs. NOW Value Comparison

Wall Street Analysts Forecast Growth

Several research analysts have recently issued reports on the stock. Citigroup restated a “buy” rating and issued a $170.00 target price (up from $154.00) on shares of ServiceNow in a report on Wednesday, October 14th. UBS Group set a $165.00 price target on shares of ServiceNow in a research report on Monday. Argus raised their price target on shares of ServiceNow from $134.00 to $170.00 and gave the stock a “buy” rating in a report on Wednesday, October 7th. BMO Capital Markets upped their price objective on shares of ServiceNow from $115.00 to $118.00 and gave the company an “outperform” rating in a research note on Thursday, July 23rd. Finally, Bank of America boosted their price target on ServiceNow from $130.00 to $150.00 and gave the company a “buy” rating in a report on Wednesday, August 19th. One analyst has rated the stock with a Strong Buy rating, thirty-six have assigned a Buy rating, three have issued a Hold rating and three have assigned a Sell rating to the company. According to MarketBeat, the company currently has an average rating of “Moderate Buy” and an average target price of $155.10.

ServiceNow Stock Performance

The company’s 50-day moving average price is $137.17 and its 200 day moving average price is $115.08. The company has a debt-to-equity ratio of 0.43, a quick ratio of 0.70 and a current ratio of 0.70. The stock has a market capitalization of $164.71 billion, a PE ratio of 99.56, a PEG ratio of 2.81 and a beta of 0.99.

ServiceNow (NYSE:NOW) last announced its quarterly earnings results on Wednesday, July 22nd. The information technology services provider reported $0.90 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.86 by $0.04. ServiceNow had a net margin of 11.34% and a return on equity of 16.45%. The company had revenue of $3.99 billion for the quarter, compared to analysts’ expectations of $3.93 billion. During the same quarter in the previous year, the company earned $0.81 earnings per share. ServiceNow’s quarterly revenue was up 24.0% on a year-over-year basis. On average, equities research analysts expect that ServiceNow, Inc. will post 2.22 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other news, insider Paul Fipps sold 2,034 shares of the stock in a transaction that occurred on Monday, August 31st. The stock was sold at an average price of $147.87, for a total value of $300,767.58. Following the completion of the transaction, the insider owned 18,305 shares of the company’s stock, valued at approximately $2,706,760.35. This represents a 10.00% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, insider Jacqueline P. Canney sold 7,847 shares of the firm’s stock in a transaction that occurred on Friday, August 28th. The shares were sold at an average price of $138.00, for a total value of $1,082,886.00. Following the completion of the transaction, the insider 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 SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 14,081 shares of company stock worth $1,937,904 over the last three months. Company insiders own 0.34% of the company’s stock.

Institutional Trading of ServiceNow

Hedge funds and other institutional investors have recently modified their holdings of the business. Bank of Nova Scotia increased its position in shares of ServiceNow by 53.3% during the first quarter. Bank of Nova Scotia now owns 1,018,036 shares of the information technology services provider’s stock valued at $106,436,000 after acquiring an additional 353,749 shares in the last quarter. Sapient Capital LLC raised its holdings in ServiceNow by 266.0% in the 2nd quarter. Sapient Capital LLC now owns 77,661 shares of the information technology services provider’s stock worth $7,710,000 after acquiring an additional 56,444 shares during the last quarter. Meeder Advisory Services Inc. bought a new position in ServiceNow in the 2nd quarter valued at approximately $2,881,000. Vestor Capital LLC lifted its position in ServiceNow by 38,987.2% in the 1st quarter. Vestor Capital LLC now owns 122,343 shares of the information technology services provider’s stock valued at $12,791,000 after acquiring an additional 122,030 shares in the last quarter. Finally, Cardano Risk Management B.V. boosted its stake in ServiceNow by 6.9% during the 2nd quarter. Cardano Risk Management B.V. now owns 484,785 shares of the information technology services provider’s stock valued at $48,129,000 after purchasing an additional 31,119 shares during the last quarter. 87.18% of the stock is owned by hedge funds and other institutional investors.

About ServiceNow

ServiceNow, Inc provides cloud-based software designed to help organizations digitize, automate and manage enterprise workflows. Its Now Platform connects people, processes and systems across departments, enabling customers to manage work through a centralized technology environment.

The company’s products and services address a range of business needs, including information technology service management, IT operations management, customer service management, human resources service delivery, security operations, risk and compliance, and application development.