ServiceNow (NYSE:NOW) Price Target Cut to $140.00 by Analysts at UBS Group

ServiceNow (NYSE:NOW) had its target price lowered by UBS Group from $150.00 to $140.00 in a research report issued on Thursday, Benzinga reports. The firm presently has a “neutral” rating on the information technology services provider’s stock. UBS Group‘s price objective would indicate a potential upside of 28.00% from the company’s current price.

Several other equities research analysts also recently weighed in on the company. Wells Fargo & Company decreased their price target on ServiceNow from $190.00 to $175.00 and set an “overweight” rating for the company in a report on Thursday. Evercore restated an “outperform” rating on shares of ServiceNow in a research report on Tuesday, October 13th. The Goldman Sachs Group restated a “buy” rating on shares of ServiceNow in a research note on Monday, August 3rd. Piper Sandler reaffirmed an “overweight” rating and issued a $175.00 target price on shares of ServiceNow in a report on Thursday. Finally, BMO Capital Markets boosted their price target on shares of ServiceNow from $115.00 to $118.00 and gave the stock an “outperform” rating in a research note on Thursday, July 23rd. One investment analyst has rated the stock with a Strong Buy rating, thirty-six have assigned a Buy rating, three have given a Hold rating and three have given a Sell rating to the company. Based on data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and a consensus price target of $154.57.

ServiceNow Stock Performance

Shares of NOW traded down $40.76 during mid-day trading on Thursday, reaching $109.37. 58,005,973 shares of the company’s stock were exchanged, compared to its average volume of 21,503,422. The business’s fifty day simple moving average is $139.55 and its 200-day simple moving average is $115.79. The stock has a market capitalization of $113.09 billion, a PE ratio of 68.34, a price-to-earnings-growth ratio of 2.92 and a beta of 0.99. ServiceNow has a 52-week low of $81.24 and a 52-week high of $192.97. The company has a debt-to-equity ratio of 0.43, a current ratio of 0.70 and a quick ratio of 0.70.

ServiceNow (NYSE:NOW) last issued its quarterly earnings data on Wednesday, October 28th. The information technology services provider reported $1.00 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.02 by ($0.02). The business had revenue of $4.11 billion for the quarter, compared to analysts’ expectations of $4.09 billion. ServiceNow had a return on equity of 16.45% and a net margin of 11.34%. The company’s revenue for the quarter was up 20.5% on a year-over-year basis. During the same period in the previous year, the business posted $4.82 earnings per share. On average, equities research analysts expect that ServiceNow will post 2.23 earnings per share for the current year.

Insider Transactions at ServiceNow

In related news, insider Jacqueline P. Canney sold 7,847 shares of ServiceNow stock in a transaction on 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 transaction, 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 ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Paul Chamberlain sold 2,700 shares of ServiceNow stock in a transaction on Thursday, August 27th. The stock was sold at an average price of $135.50, for a total value of $365,850.00. Following the transaction, the director directly owned 43,990 shares of the company’s stock, valued at approximately $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 have sold 14,081 shares of company stock valued at $1,937,904 in the last quarter. 0.34% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Hedge funds have recently made changes to their positions in the company. Bank of Nova Scotia grew its holdings 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 worth $106,436,000 after buying an additional 353,749 shares in the last quarter. Sapient Capital LLC grew its stake in shares of ServiceNow by 266.0% during the 2nd quarter. Sapient Capital LLC now owns 77,661 shares of the information technology services provider’s stock valued at $7,710,000 after buying an additional 56,444 shares during the period. Meeder Advisory Services Inc. purchased a new position in shares of ServiceNow in the 2nd quarter worth $2,881,000. Vestor Capital LLC boosted its holdings in ServiceNow by 38,987.2% in the first 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 during the last quarter. Finally, Cardano Risk Management B.V. boosted its holdings in ServiceNow by 6.9% in the second 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 acquiring an additional 31,119 shares during the last quarter. Hedge funds and other institutional investors own 87.18% of the company’s stock.

Key ServiceNow News

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: ServiceNow expanded its partnership with OpenAI to bring governed AI agents, cybersecurity capabilities and agentic development tools into enterprise workflows, supporting management’s long-term AI strategy. ServiceNow and OpenAI partnership
• Positive Sentiment: HPE selected ServiceNow for a five-year agreement to support its Cloud & AI business, while ServiceNow also launched a Control Tower Alliance focused on secure enterprise AI adoption. HPE ServiceNow agreement
• Positive Sentiment: Several analysts remained constructive after the results. Piper Sandler reaffirmed an overweight rating with a $175 target, while Oppenheimer maintained outperform with a $165 target; these targets imply substantial potential upside from current levels. Analyst views on ServiceNow
• Neutral Sentiment: Third-quarter revenue rose 20.5% year over year to $4.11 billion, exceeding the $4.09 billion consensus estimate. ServiceNow also raised its AI-related sales target, indicating continued demand, although investors focused more heavily on forward bookings trends. ServiceNow third-quarter results
• Negative Sentiment: Adjusted earnings of $1.00 per share missed the $1.02 estimate, while acquisition-related costs and higher debt and interest expenses raised questions about profit growth and cash-flow conversion. ServiceNow earnings miss
• Negative Sentiment: Management’s outlook for slower growth in subscription bookings, contracted revenue and fourth-quarter revenue was the primary catalyst for the decline. Investors viewed the guidance as evidence that enterprise customers may be moderating software spending. ServiceNow bookings outlook
• Negative Sentiment: The weaker outlook has reignited fears that generative AI could reduce demand for traditional workflow and help-desk software, pressuring ServiceNow’s valuation and weighing on other software stocks as well. ServiceNow AI disruption concerns

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.