ServiceNow (NYSE:NOW) Shares Gap Down – Time to Sell?

ServiceNow, Inc. (NYSE:NOW) gapped down before the market opened on Thursday . The stock had previously closed at $107.78, but opened at $102.03. ServiceNow shares last traded at $107.0020, with a volume of 3,765,446 shares traded.

Key Stories Impacting ServiceNow

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: Truist Financial raised its price target on ServiceNow to $130 from $120 and reiterated a buy rating, signaling confidence in additional upside from current levels. Benzinga source
• Positive Sentiment: Several recent commentaries argue that the market’s bearish case on ServiceNow’s AI prospects is fading, with analysts and investors seeing stronger momentum in enterprise AI adoption and workflow automation. Article Title
• Positive Sentiment: Coverage highlighting ServiceNow as a top cloud/software pick and mentions of the company in “final trades” segments reinforce the view that institutional interest remains healthy. Article Title
• Neutral Sentiment: ServiceNow is consolidating as investors weigh a constructive software backdrop, including Accenture’s launch of agentic AI offerings, which keeps the AI narrative in focus but is not a direct company-specific catalyst. Article Title
• Neutral Sentiment: Other articles note that ServiceNow remains widely watched and still trades below its longer-term moving average, suggesting investors are balancing growth optimism against concerns about valuation and the stock’s earlier decline. Article Title
• Negative Sentiment: Recent market pieces also frame ServiceNow as having sold off earlier this year and being vulnerable to broader software-sector pressure, which may keep some investors cautious despite the upbeat analyst tone. Article Title

Analyst Upgrades and Downgrades

A number of equities research analysts have weighed in on NOW shares. Citizens Jmp restated a “market outperform” rating and set a $157.00 price target on shares of ServiceNow in a research report on Tuesday, May 5th. Raymond James Financial cut their price objective on ServiceNow from $160.00 to $130.00 and set an “outperform” rating for the company in a report on Thursday, April 23rd. Benchmark raised their price objective on ServiceNow from $125.00 to $130.00 and gave the company a “buy” rating in a report on Monday, June 15th. BTIG Research restated a “buy” rating and issued a $150.00 target price on shares of ServiceNow in a research report on Monday, June 29th. Finally, Weiss Ratings lowered ServiceNow from a “hold (c)” rating to a “hold (c-)” rating in a research note on Tuesday, April 21st. One equities research analyst has rated the stock with a Strong Buy rating, thirty-six have issued a Buy rating, four have issued a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and a consensus target price of $141.47.

ServiceNow Stock Down 0.4%

The stock has a market capitalization of $110.70 billion, a P/E ratio of 63.91, a PEG ratio of 1.84 and a beta of 0.96. The stock has a 50 day moving average price of $101.74 and a 200-day moving average price of $111.62. The company has a debt-to-equity ratio of 0.13, a current ratio of 0.84 and a quick ratio of 0.84.

ServiceNow (NYSE:NOW) last released its earnings results on Wednesday, April 22nd. The information technology services provider reported $0.97 earnings per share for the quarter, meeting analysts’ consensus estimates of $0.97. ServiceNow had a return on equity of 18.16% and a net margin of 12.59%.The company had revenue of $3.77 billion during the quarter, compared to analyst estimates of $3.75 billion. During the same quarter in the previous year, the company posted $0.81 EPS. ServiceNow’s revenue for the quarter was up 22.1% on a year-over-year basis. As a group, research analysts expect that ServiceNow, Inc. will post 2.34 EPS for the current fiscal year.

Insider Buying and Selling

In related news, insider Paul Fipps sold 1,048 shares of ServiceNow stock in a transaction on Monday, May 18th. The shares were sold at an average price of $98.51, for a total value of $103,238.48. Following the transaction, the insider directly owned 12,072 shares of the company’s stock, valued at $1,189,212.72. The trade was a 7.99% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Director Paul Edward Chamberlain sold 1,500 shares of the company’s stock in a transaction on Thursday, May 14th. The shares were sold at an average price of $87.23, for a total transaction of $130,845.00. Following the sale, the director owned 44,930 shares of the company’s stock, valued at $3,919,243.90. This represents 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. Over the last ninety days, insiders have sold 28,071 shares of company stock worth $2,529,956. Company insiders own 0.34% of the company’s stock.

Hedge Funds Weigh In On ServiceNow

Hedge funds have recently modified their holdings of the company. Noble Wealth Management PBC lifted its holdings in ServiceNow by 400.0% in the 4th quarter. Noble Wealth Management PBC now owns 160 shares of the information technology services provider’s stock worth $25,000 after buying an additional 128 shares during the period. Millstone Evans Group LLC raised its holdings in ServiceNow by 400.0% in the fourth quarter. Millstone Evans Group LLC now owns 165 shares of the information technology services provider’s stock worth $25,000 after purchasing an additional 132 shares in the last quarter. CBIZ Investment Advisory Services LLC lifted its position in ServiceNow by 540.0% during the fourth quarter. CBIZ Investment Advisory Services LLC now owns 160 shares of the information technology services provider’s stock valued at $25,000 after buying an additional 135 shares during the period. Blueline Advisors LLC bought a new stake in shares of ServiceNow during the 4th quarter valued at $25,000. Finally, Measured Wealth Private Client Group LLC grew its position in shares of ServiceNow by 560.0% in the 4th quarter. Measured Wealth Private Client Group LLC now owns 165 shares of the information technology services provider’s stock worth $25,000 after buying an additional 140 shares during the period. Hedge funds and other institutional investors own 87.18% of the company’s stock.

About ServiceNow

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.