ServiceNow (NYSE:NOW) Shares Up 1.8% – Still a Buy?

ServiceNow, Inc. (NYSE:NOW) shares traded up 1.8% during trading on Wednesday . The company traded as high as $108.26 and last traded at $107.8530. 18,091,313 shares were traded during mid-day trading, a decline of 11% from the average session volume of 20,361,104 shares. The stock had previously closed at $105.91.

Trending Headlines about ServiceNow

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: Executives bought stock and stopped automatic sales, signaling confidence and removing near-term selling pressure — CEO Bill McDermott made a ~$3M open-market purchase and top officers cancelled 10b5-1 plans. ServiceNow Insiders Buy as Wall Street Panics Over an AI SaaSpocalypse
• Positive Sentiment: Board authorized a $5B buyback and executed a $2B Accelerated Share Repurchase (ASR) immediately — directly supports EPS and signals management views shares as undervalued. ServiceNow Insiders Buy as Wall Street Panics Over an AI SaaSpocalypse
• Positive Sentiment: Fundamentals remain strong: recent quarter beat estimates (revenue and EPS), high free cash flow margins and guidance calling for continued ~20% revenue growth — supports longer-term valuation recovery. ServiceNow, Inc. (NOW) is Attracting Investor Attention
• Positive Sentiment: Product strategy aims to monetize AI adoption — ServiceNow positions itself as the “AI Control Tower” and is rolling out autonomous agents that can operate without human intervention, reinforcing its governance/management role for AI agents. ServiceNow’s new AI agents can work without human intervention
• Neutral Sentiment: Broader selloff is drawing analyst attention to discounted software names; UBS highlights software picks as value opportunities (uncertain if NOW is included). Searching software for value as shares get pummeled. UBS found four stocks it likes
• Neutral Sentiment: Long-form analyst pieces argue the market may be mispricing potential enterprise leaders in the “agentic” era — useful context but not an immediate catalyst. Is The Market Mispricing The Next Enterprise Titan In The Agentic Era?
• Negative Sentiment: Sector pressure: Palo Alto Networks slipped after issuing cautious guidance despite a beat, underscoring how AI-related seat-compression fears and weak near-term outlooks can pull down software peers like NOW. Palo Alto shares sink 8%, CEO defends cybersecurity’s position as AI hits software stocks

Analyst Upgrades and Downgrades

NOW has been the subject of several analyst reports. Oppenheimer reissued an “outperform” rating and issued a $175.00 target price (down from $200.00) on shares of ServiceNow in a report on Wednesday, January 21st. Evercore reiterated an “outperform” rating and issued a $175.00 price target (down from $225.00) on shares of ServiceNow in a research report on Thursday, January 29th. Deutsche Bank Aktiengesellschaft set a $180.00 price objective on shares of ServiceNow in a research note on Thursday, January 29th. HSBC lowered their target price on shares of ServiceNow from $266.40 to $226.00 and set a “buy” rating on the stock in a research note on Friday, January 30th. Finally, Macquarie Infrastructure cut their price target on ServiceNow from $172.00 to $140.00 and set a “neutral” rating for the company in a research note on Thursday, January 29th. Three equities research analysts have rated the stock with a Strong Buy rating, thirty-three have given a Buy rating, six have given a Hold rating and two have assigned a Sell rating to the stock. According to data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and a consensus target price of $192.06.

ServiceNow Trading Up 1.8%

The firm has a market cap of $112.81 billion, a P/E ratio of 64.66, a P/E/G ratio of 1.81 and a beta of 0.97. The stock has a 50 day simple moving average of $135.57 and a 200-day simple moving average of $163.26. The company has a current ratio of 1.00, a quick ratio of 1.00 and a debt-to-equity ratio of 0.12.

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

Insider Buying and Selling at ServiceNow

In other news, Director Paul Edward Chamberlain sold 1,500 shares of ServiceNow stock in a transaction that occurred on Thursday, February 12th. The stock was sold at an average price of $101.17, for a total value of $151,755.00. Following the completion of the transaction, the director owned 46,430 shares in the company, valued at approximately $4,697,323.10. The trade was a 3.13% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CFO Gina Mastantuono sold 2,075 shares of the business’s stock in a transaction that occurred on Friday, December 5th. The shares were sold at an average price of $170.00, for a total value of $352,750.00. Following the transaction, the chief financial officer directly owned 61,140 shares in the company, valued at approximately $10,393,800. This represents a 3.28% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 9,885 shares of company stock valued at $1,446,543 over the last quarter. 0.34% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On ServiceNow

Several hedge funds and other institutional investors have recently made changes to their positions in NOW. Kilter Group LLC bought a new position in ServiceNow during the 2nd quarter valued at about $25,000. IAG Wealth Partners LLC boosted its position in shares of ServiceNow by 200.0% during the third quarter. IAG Wealth Partners LLC now owns 27 shares of the information technology services provider’s stock valued at $25,000 after buying an additional 18 shares during the period. Noble Wealth Management PBC grew its stake in shares of ServiceNow by 400.0% during the fourth quarter. Noble Wealth Management PBC now owns 160 shares of the information technology services provider’s stock valued at $25,000 after buying an additional 128 shares during the last quarter. Millstone Evans Group LLC raised its holdings in shares of 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 buying an additional 132 shares during the period. Finally, CBIZ Investment Advisory Services LLC lifted its stake in shares of ServiceNow by 540.0% during the 4th quarter. CBIZ Investment Advisory Services LLC now owns 160 shares of the information technology services provider’s stock worth $25,000 after acquiring an additional 135 shares during the last quarter. Hedge funds and other institutional investors own 87.18% of the company’s stock.

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.