ServiceNow (NYSE:NOW) Shares Gap Down – Here’s What Happened

ServiceNow, Inc. (NYSE:NOW) gapped down prior to trading on Tuesday . The stock had previously closed at $114.19, but opened at $110.31. ServiceNow shares last traded at $110.7130, with a volume of 4,326,451 shares trading hands.

More ServiceNow News

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: NICE announced an AI-first integration with ServiceNow designed to unify customer engagement and enterprise workflows, highlighting continued ecosystem adoption and another potential use case for ServiceNow’s platform. NICE Launches AI-First ServiceNow Integration to Unify Customer Engagement and Enterprise Workflows
• Positive Sentiment: Several market write-ups framed ServiceNow as outperforming the broader market, reinforcing the idea that investors still view the company as a strong enterprise software name despite recent volatility. ServiceNow (NOW) Exceeds Market Returns: Some Facts to Consider
• Positive Sentiment: One commentary argued that SaaS fears may have created a favorable entry point for ServiceNow, which could support buying interest if investors believe AI and automation demand will offset growth concerns. ServiceNow: SaaS Fears Have Created A Great Entry Point
• Neutral Sentiment: Another article highlighted that President Trump bought ServiceNow shares in February, but also noted broader concerns around SaaS valuations, AI disruption, and geopolitical risks; this is more of a sentiment driver than a direct business update. Trump’s ServiceNow Buy Tests SaaS Valuations And Geopolitical Growth Risks
• Neutral Sentiment: General market articles about software peers and “buy the dip” trading likely added context to sector sentiment, but did not directly change ServiceNow’s fundamentals. Buy The Dip? Not So Fast.
• Negative Sentiment: Some commentary pointed to headwinds for subscription growth and questions about how SaaS models adapt to AI, which could weigh on valuation if investors focus on slowing growth rather than expansion opportunities. Trump’s ServiceNow Buy Tests SaaS Valuations And Geopolitical Growth Risks

Analyst Ratings Changes

A number of analysts have issued reports on the stock. Mizuho reduced their target price on shares of ServiceNow from $150.00 to $140.00 and set an “outperform” rating for the company in a research note on Thursday, April 23rd. The Goldman Sachs Group reduced their target price on shares of ServiceNow from $188.00 to $163.00 and set a “buy” rating for the company in a research note on Thursday, April 23rd. Raymond James Financial reduced their target price on shares of ServiceNow from $160.00 to $130.00 and set an “outperform” rating for the company in a research note on Thursday, April 23rd. Cantor Fitzgerald reduced their target price on shares of ServiceNow to $122.00 and set an “overweight” rating for the company in a research note on Thursday, April 23rd. Finally, Needham & Company LLC reiterated a “buy” rating and issued a $115.00 target price on shares of ServiceNow in a research note on Tuesday, May 5th. Two analysts have rated the stock with a Strong Buy rating, thirty-five have assigned a Buy rating, five have assigned a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, the company has an average rating of “Moderate Buy” and an average target price of $141.85.

ServiceNow Price Performance

The stock’s 50 day moving average price is $99.69 and its two-hundred day moving average price is $121.36. The company has a debt-to-equity ratio of 0.13, a current ratio of 0.84 and a quick ratio of 0.84. The firm has a market capitalization of $107.54 billion, a price-to-earnings ratio of 61.88, a PEG ratio of 1.86 and a beta of 0.94.

ServiceNow (NYSE:NOW) last issued its quarterly earnings data on Wednesday, April 22nd. The information technology services provider reported $0.97 earnings per share for the quarter, hitting analysts’ consensus estimates of $0.97. ServiceNow had a net margin of 12.59% and a return on equity of 18.16%. The business had revenue of $3.77 billion during the quarter, compared to analysts’ expectations of $3.75 billion. During the same period in the previous year, the company earned $0.81 earnings per share. ServiceNow’s revenue for the quarter was up 22.1% on a year-over-year basis. On average, equities research analysts anticipate that ServiceNow, Inc. will post 2.35 EPS for the current year.

Insider Activity

In other news, Director Anita M. Sands sold 16,445 shares of the business’s stock in a transaction on Thursday, May 14th. The shares were sold at an average price of $90.14, for a total value of $1,482,352.30. Following the completion of the sale, the director directly owned 30,090 shares in the company, valued at approximately $2,712,312.60. The trade was a 35.34% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, Director Paul Edward Chamberlain sold 1,500 shares of the business’s stock in a transaction on Thursday, May 14th. The stock was sold at an average price of $87.23, for a total transaction of $130,845.00. Following the completion of the sale, the director owned 44,930 shares of the company’s stock, valued at $3,919,243.90. The trade was a 3.23% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 28,071 shares of company stock valued at $2,529,956 over the last three months. Corporate insiders own 0.34% of the company’s stock.

Institutional Trading of ServiceNow

A number of institutional investors and hedge funds have recently modified their holdings of NOW. Vanguard Group Inc. raised its stake in ServiceNow by 404.5% during the 4th quarter. Vanguard Group Inc. now owns 101,963,384 shares of the information technology services provider’s stock valued at $15,619,771,000 after purchasing an additional 81,752,460 shares during the last quarter. State Street Corp raised its stake in ServiceNow by 406.6% during the 4th quarter. State Street Corp now owns 47,896,597 shares of the information technology services provider’s stock valued at $7,337,280,000 after purchasing an additional 38,441,898 shares during the last quarter. Price T Rowe Associates Inc. MD raised its stake in ServiceNow by 371.0% during the 4th quarter. Price T Rowe Associates Inc. MD now owns 32,395,663 shares of the information technology services provider’s stock valued at $4,962,692,000 after purchasing an additional 25,517,218 shares during the last quarter. Geode Capital Management LLC raised its stake in ServiceNow by 404.8% during the 4th quarter. Geode Capital Management LLC now owns 23,512,428 shares of the information technology services provider’s stock valued at $3,591,425,000 after purchasing an additional 18,854,775 shares during the last quarter. Finally, Morgan Stanley raised its stake in ServiceNow by 335.6% during the 4th quarter. Morgan Stanley now owns 22,733,483 shares of the information technology services provider’s stock valued at $3,482,543,000 after purchasing an additional 17,514,679 shares during the last quarter. 87.18% of the stock is currently owned by institutional investors and hedge funds.

ServiceNow Company Profile

ServiceNow (NYSE: NOW) is a cloud computing company that builds enterprise software to manage digital workflows and automate business processes. Its offerings are designed to replace manual work and legacy systems with cloud-based, service-oriented applications that support IT operations, customer service, human resources, security response and other enterprise functions.

The company’s flagship product family is the Now Platform, a suite of subscription software and platform services that includes IT Service Management (ITSM), IT Operations Management (ITOM), IT Business Management (ITBM), Customer Service Management (CSM), HR Service Delivery, Security Operations and Asset Management.