ServiceNow (NYSE:NOW) Shares Up 4.9% – What’s Next?

ServiceNow, Inc. (NYSE:NOW)’s stock price traded up 4.9% during mid-day trading on Thursday . The stock traded as high as $110.15 and last traded at $109.30. 25,466,279 shares traded hands during mid-day trading, an increase of 27% from the average session volume of 20,107,369 shares. The stock had previously closed at $104.23.

Key Headlines Impacting ServiceNow

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: Moveworks (from ServiceNow) received FedRAMP Moderate authorization, clearing a federal security hurdle and enabling broader public?sector deployments of its conversational AI — a clear revenue?access and credibility boost for government deals. Moveworks FedRAMP announcement
• Positive Sentiment: ServiceNow says it resolves ~90% of its own IT requests autonomously — a demonstration of product maturity that can be marketed as ROI and may accelerate enterprise adoption and upsells for AI/automation features. VentureBeat: 90% autonomously resolved
• Positive Sentiment: ServiceNow AVR’s integration with Contrast Security strengthens DevSecOps and security posture on the platform — a capability that can increase customer stickiness in regulated and security?sensitive accounts. AVR + Contrast Security integration
• Positive Sentiment: Company continues to expand AI/analytics capability (acquisitions, partnerships) and management/insiders have signaled confidence with purchase activity — supports the long?term narrative that AI will be a tailwind to the Now Platform. Yahoo Finance: AI push, deals and insider buying
• Neutral Sentiment: Partnership messaging (e.g., EY collaboration on “system of experience”) and third?party integrations (e.g., Sweep announcing upcoming ServiceNow support) support demand but are incremental rather than immediate catalysts. DQIndia: EY & ServiceNow collaboration
• Negative Sentiment: Short interest jumped ~28% in February to ~27.2M shares (~2.6% of float) — higher bearish positioning can amplify downside or volatility during earnings or headline risk. MarketBeat: short interest data
• Negative Sentiment: Insider Paul Fipps sold 3,696 shares (~$376k) on Feb. 23, reducing his stake by ~31% — an isolated insider sale that may be viewed negatively despite other insiders buying. InsiderTrades: Paul Fipps sale
• Negative Sentiment: Persistent market narrative that AI could compress traditional software growth still weighs on valuation; coverage notes the stock is deeply oversold but warns execution on AI monetization is the key risk. MarketBeat: oversold/AI narrative

Wall Street Analyst Weigh In

NOW has been the subject of a number of research reports. BNP Paribas Exane decreased their price objective on ServiceNow from $186.00 to $120.00 and set a “neutral” rating for the company in a report on Thursday, January 22nd. BTIG Research reissued a “buy” rating and set a $200.00 price target on shares of ServiceNow in a research report on Thursday, January 29th. Weiss Ratings restated a “hold (c)” rating on shares of ServiceNow in a report on Thursday, January 22nd. Barclays lifted their target price on shares of ServiceNow from $242.00 to $245.00 and gave the company an “overweight” rating in a report on Thursday, October 30th. Finally, Macquarie Infrastructure reduced their price objective on ServiceNow from $172.00 to $140.00 and set a “neutral” rating for the company in a research report on Thursday, January 29th. Three investment analysts have rated the stock with a Strong Buy rating, thirty-two have given a Buy rating, six have given a Hold rating and two have issued a Sell rating to the company. According to MarketBeat.com, ServiceNow currently has an average rating of “Moderate Buy” and an average price target of $192.06.

ServiceNow Price Performance

The company has a debt-to-equity ratio of 0.12, a current ratio of 1.00 and a quick ratio of 1.00. The business’s 50 day moving average price is $128.46 and its 200 day moving average price is $160.23. The stock has a market capitalization of $114.33 billion, a P/E ratio of 65.53, a price-to-earnings-growth ratio of 1.73 and a beta of 0.97.

ServiceNow (NYSE:NOW) last issued its quarterly earnings data 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 net margin of 13.16% and a return on equity of 18.54%. The firm’s revenue for the quarter was up 20.7% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $0.73 earnings per share. Sell-side analysts forecast that ServiceNow, Inc. will post 8.93 EPS for the current year.

Insider Buying and Selling at ServiceNow

In other news, Director Lawrence Jackson sold 1,325 shares of the stock in a transaction that occurred on Friday, November 28th. The shares were sold at an average price of $162.04, for a total value of $214,708.30. Following the transaction, the director owned 1,615 shares in the company, valued at $261,701.06. This represents a 45.07% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, Director Paul Edward Chamberlain sold 1,500 shares of the business’s stock in a transaction that occurred on Thursday, February 12th. The shares were sold at an average price of $101.17, for a total transaction of $151,755.00. Following the sale, the director owned 46,430 shares of the company’s stock, valued at $4,697,323.10. This trade represents a 3.13% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last quarter, insiders sold 23,222 shares of company stock worth $2,843,956. 0.34% of the stock is owned by corporate insiders.

Institutional Trading of ServiceNow

A number of institutional investors and hedge funds have recently bought and sold shares of the stock. Kilter Group LLC purchased a new position in ServiceNow during the 2nd quarter valued at approximately $25,000. IAG Wealth Partners LLC increased its position in ServiceNow by 200.0% in the third quarter. IAG Wealth Partners LLC now owns 27 shares of the information technology services provider’s stock worth $25,000 after purchasing an additional 18 shares during the last quarter. Total Investment Management Inc. purchased a new stake in ServiceNow during the second quarter valued at $31,000. Bogart Wealth LLC lifted its position in ServiceNow by 93.8% during the third quarter. Bogart Wealth LLC now owns 31 shares of the information technology services provider’s stock valued at $29,000 after purchasing an additional 15 shares during the last quarter. Finally, Wealth Watch Advisors INC purchased a new position in shares of ServiceNow in the 3rd quarter worth $29,000. 87.18% of the stock is currently owned by institutional investors.

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.