ServiceNow (NYSE:NOW) Given Buy Rating at Needham & Company LLC

ServiceNow (NYSE:NOW)‘s stock had its “buy” rating reiterated by investment analysts at Needham & Company LLC in a report issued on Thursday,Benzinga reports. They presently have a $155.00 price objective on the information technology services provider’s stock. Needham & Company LLC’s price objective would indicate a potential upside of 39.75% from the stock’s previous close.

Other analysts have also issued reports about the stock. KeyCorp cut their target price on shares of ServiceNow from $155.00 to $115.00 and set an “underweight” rating for the company in a research report on Thursday, January 29th. Jefferies Financial Group reduced their price objective on ServiceNow from $230.00 to $175.00 and set a “buy” rating for the company in a research note on Friday, January 23rd. Macquarie lowered their target price on ServiceNow from $172.00 to $140.00 and set a “neutral” rating on the stock in a research report on Thursday, January 29th. Guggenheim upgraded ServiceNow from a “sell” rating to a “neutral” rating in a research report on Tuesday, December 16th. Finally, BMO Capital Markets lowered their price objective on ServiceNow from $175.00 to $170.00 and set an “outperform” rating on the stock in a research report on Thursday, January 29th. Two investment analysts have rated the stock with a Strong Buy rating, thirty-three have issued a Buy rating, six have assigned a Hold rating and two have assigned a Sell rating to the stock. According to data from MarketBeat, the stock has an average rating of “Moderate Buy” and an average target price of $194.77.

ServiceNow Stock Performance

NOW stock opened at $110.91 on Thursday. The company has a debt-to-equity ratio of 0.12, a current ratio of 1.00 and a quick ratio of 1.00. ServiceNow has a 1 year low of $105.25 and a 1 year high of $211.48. The company has a market cap of $116.01 billion, a P/E ratio of 66.49, a price-to-earnings-growth ratio of 1.86 and a beta of 0.97. The stock’s fifty day moving average price is $146.78 and its 200-day moving average price is $169.06.

ServiceNow (NYSE:NOW) last posted its earnings results on Wednesday, January 28th. The information technology services provider reported $0.92 earnings per share for the quarter, beating analysts’ consensus estimates of $0.89 by $0.03. The company had revenue of $3.57 billion for the quarter, compared to the consensus estimate of $3.53 billion. ServiceNow had a return on equity of 18.54% and a net margin of 13.16%.ServiceNow’s revenue was up 20.7% on a year-over-year basis. During the same quarter in the prior year, the company earned $0.73 earnings per share. On average, equities analysts forecast that ServiceNow will post 8.93 earnings per share for the current year.

Insider Buying and Selling at ServiceNow

In related news, CFO Gina Mastantuono sold 2,075 shares of the firm’s stock in a transaction on Friday, December 5th. The shares were sold at an average price of $170.00, for a total transaction of $352,750.00. Following the completion of the transaction, the chief financial officer directly owned 61,140 shares of the company’s stock, valued at approximately $10,393,800. This trade represents a 3.28% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, Director Paul Edward Chamberlain sold 1,500 shares of ServiceNow stock in a transaction on Friday, November 28th. The shares were sold at an average price of $161.60, for a total transaction of $242,400.00. Following the completion of the sale, the director owned 47,930 shares in the company, valued at approximately $7,745,488. This represents a 3.03% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last 90 days, insiders sold 15,310 shares of company stock worth $2,533,585. Insiders own 0.34% of the company’s stock.

Institutional Inflows and Outflows

A number of institutional investors have recently made changes to their positions in the company. New York Life Investment Management LLC lifted its position in shares of ServiceNow by 405.6% in the fourth quarter. New York Life Investment Management LLC now owns 153,944 shares of the information technology services provider’s stock worth $23,583,000 after buying an additional 123,495 shares in the last quarter. Cornerstone Wealth Management LLC grew its position in ServiceNow by 406.1% in the fourth quarter. Cornerstone Wealth Management LLC now owns 1,827 shares of the information technology services provider’s stock worth $280,000 after acquiring an additional 1,466 shares in the last quarter. Mesirow Financial Investment Management Inc. increased its stake in ServiceNow by 311.5% during the fourth quarter. Mesirow Financial Investment Management Inc. now owns 2,835 shares of the information technology services provider’s stock worth $434,000 after acquiring an additional 2,146 shares during the last quarter. Pinnacle Associates Ltd. raised its position in ServiceNow by 512.7% during the fourth quarter. Pinnacle Associates Ltd. now owns 19,490 shares of the information technology services provider’s stock valued at $2,986,000 after purchasing an additional 16,309 shares during the period. Finally, Simmons Bank lifted its stake in shares of ServiceNow by 378.7% in the 4th quarter. Simmons Bank now owns 14,595 shares of the information technology services provider’s stock valued at $2,236,000 after purchasing an additional 11,546 shares during the last quarter. Hedge funds and other institutional investors own 87.18% of the company’s stock.

Trending Headlines about ServiceNow

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: Needham reiterated a Buy and set a $155 price target, citing strong adoption of Now Assist and AI-driven growth that make the current pullback an attractive entry point. ServiceNow: Strong Now Assist Adoption and AI-Driven Growth Create Attractive Buy Entry Point
• Positive Sentiment: Bernstein calls NOW a “discount large-cap growth” opportunity (reaffirming bullish view) — a valuation-based argument that the pullback offers long-term upside relative to peers. Why Bernstein Calls ServiceNow (NOW) a Discount Large-Cap Growth Stock
• Positive Sentiment: ServiceNow deepened its AI platform strategy via a partnership with Anthropic, reinforcing product-led AI roadmap and enterprise go-to-market that could sustain revenue expansion. ServiceNow Deepens AI Platform Strategy With Anthropic Partnership
• Positive Sentiment: Multiple broker notes (Cantor Fitzgerald, Bernstein, Stifel) remain bullish after the company’s Q4 results, providing analyst support that could limit downside and catalyze recovery. ServiceNow (NOW) Stock: Analysts Back Tech Giant Despite Post-Earnings Selloff
• Neutral Sentiment: Analysis argues AI demand for ServiceNow is rising but investors may be focused on the wrong near-term risks — a nuanced view that supports long-term demand yet explains short-term volatility. ServiceNow: AI Demand Soars While Investors Fear The Wrong Risk
• Neutral Sentiment: Debate over a possible “SaaSpocalypse” — some firms see rebound potential while others (notably media commentators) warn of structural AI disruption; outcome will drive medium-term investor conviction. Software ‘SaaSpocalypse:’ BTIG Sees Salesforce, ServiceNow Rebound, But jim Cramer Warns Of Permanent AI Obsolescence
• Negative Sentiment: Software names are under broad pressure as AI-related fears and competitive moves (new Anthropic features elsewhere) have led to sector fund outflows and a sizable pullback. Software experiencing ‘most exciting moment’ as AI fears hammer the stocks
• Negative Sentiment: Security research flagged exploitable AI agents tied to ServiceNow and Microsoft, highlighting a preventable but acute AI security risk that could worry enterprise customers and investors. Microsoft and ServiceNow’s exploitable agents reveal a growing – and preventable – AI security crisis
• Negative Sentiment: Prominent commentators (e.g., Jim Cramer) described ServiceNow as emblematic of sector pain, amplifying short-term selling pressure despite analyst pushback. Jim Cramer on ServiceNow: “This Stock Has Become a Nightmare”

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.