ServiceNow (NYSE:NOW) Stock Jumps 2.8% – Here’s What Happened

ServiceNow, Inc. (NYSE:NOW)’s share price was up 2.8% during trading on Thursday. The company traded as high as $140.80 and last traded at $137.7720. 10,130,023 shares changed hands during trading, a decline of 54% from the average daily volume of 22,204,002 shares. The stock had previously closed at $134.01.

More ServiceNow News

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: ServiceNow’s AI business remains a major growth driver. An analyst maintains a “Strong Buy” view, citing the company’s embedded enterprise workflow platform, hybrid seat- and consumption-based pricing, and rapidly growing AI annual contract value, which is expected to reach approximately $1.5 billion by year-end. Management is targeting AI for roughly 30% of total contract value by 2030. ServiceNow: Still A Strong Buy As AI Revenues Gain Traction
• Positive Sentiment: ServiceNow executives highlighted customer success with AI agents, including at Standard Chartered, supporting the view that enterprises are moving from experimentation toward meaningful production deployments. The company also emphasized that customers need governance and employee training to use AI effectively. ServiceNow Executive on Clients Delivering Results With AI Agents
• Positive Sentiment: The launch of Flow by ServiceNow, a conversational, AI-native service desk designed for deployment within a day and without infrastructure requirements, recently helped lift investor enthusiasm for the company’s product momentum. Why ServiceNow Stock Is Up Today
• Neutral Sentiment: Deutsche Bank selected ServiceNow among its preferred stocks for the next phase of the AI trade, reinforcing institutional confidence but also keeping expectations high. Deutsche Bank Picks Meta and ServiceNow for the Next AI Trade Leg
• Negative Sentiment: A separate analysis downgraded ServiceNow, arguing that margins have shown insufficient progress and that the shares are fully valued. This valuation concern appears to be the clearest pressure on NOW today, particularly after its recent rebound. ServiceNow: No Progress on Margins and Fully Valued

Analysts Set New Price Targets

Several analysts recently weighed in on NOW shares. Benchmark reaffirmed a “buy” rating on shares of ServiceNow in a report on Friday, July 17th. BTIG Research boosted their price target on shares of ServiceNow from $150.00 to $170.00 and gave the stock a “buy” rating in a report on Tuesday, September 8th. TD Cowen restated a “buy” rating and issued a $140.00 price objective on shares of ServiceNow in a report on Monday, August 17th. Royal Bank Of Canada reiterated an “outperform” rating and set a $130.00 target price on shares of ServiceNow in a research note on Thursday, July 23rd. Finally, Sanford C. Bernstein restated an “outperform” rating on shares of ServiceNow in a research note on Wednesday, September 9th. One research analyst has rated the stock with a Strong Buy rating, thirty-six have given a Buy rating, three have issued a Hold rating and two have issued a Sell rating to the stock. According to data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and an average price target of $147.00.

ServiceNow Stock Performance

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 50-day simple moving average of $130.08 and a 200 day simple moving average of $111.49. The company has a market cap of $138.83 billion, a price-to-earnings ratio of 83.92, a price-to-earnings-growth ratio of 2.53 and a beta of 0.99.

ServiceNow (NYSE:NOW) last announced its earnings results 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 net margin of 11.34% and a return on equity of 16.45%. The business had revenue of $3.99 billion for the quarter, compared to analyst estimates of $3.93 billion. During the same period last year, the firm posted $0.81 earnings per share. The company’s revenue for the quarter was up 24.0% compared to the same quarter last year. On average, sell-side analysts predict that ServiceNow, Inc. will post 2.22 earnings per share for the current fiscal year.

Insider Buying and Selling at ServiceNow

In other news, 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 value of $365,850.00. Following the completion of the sale, 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 sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, insider Jacqueline Canney sold 7,847 shares of the firm’s stock in a transaction dated Friday, August 28th. The stock was sold at an average price of $138.00, for a total value of $1,082,886.00. Following the transaction, the insider directly owned 30,042 shares in the company, valued at approximately $4,145,796. This represents 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. Over the last three months, insiders have sold 14,081 shares of company stock worth $1,937,904. 0.34% of the stock is owned by company insiders.

Hedge Funds Weigh In On ServiceNow

A number of hedge funds and other institutional investors have recently bought and sold shares of the company. Bank of Nova Scotia lifted its holdings in ServiceNow by 53.3% in 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 during the period. 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 worth $7,710,000 after purchasing an additional 56,444 shares during the period. Raiffeisen Bank International AG increased its holdings in shares of ServiceNow by 367.6% in the 4th quarter. Raiffeisen Bank International AG now owns 345,240 shares of the information technology services provider’s stock valued at $53,246,000 after purchasing an additional 271,401 shares in the last quarter. Nicollet Investment Management Inc. lifted its stake in shares of ServiceNow by 405.6% in the fourth quarter. Nicollet Investment Management Inc. now owns 21,045 shares of the information technology services provider’s stock valued at $3,224,000 after purchasing an additional 16,883 shares during the period. Finally, Motley Fool Wealth Management LLC lifted its stake in shares of ServiceNow by 297.8% in the fourth quarter. Motley Fool Wealth Management LLC now owns 79,275 shares of the information technology services provider’s stock valued at $12,144,000 after purchasing an additional 59,349 shares during the period. 87.18% of the stock is currently owned by hedge funds and other institutional investors.

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.