ServiceNow (NYSE:NOW) Shares Up 6.3% – Still a Buy?

ServiceNow, Inc. (NYSE:NOW)’s stock price traded up 6.3% during trading on Thursday . The company traded as high as $110.16 and last traded at $108.5810. 37,828,849 shares traded hands during trading, an increase of 67% from the average session volume of 22,672,699 shares. The stock had previously closed at $102.12.

More ServiceNow News

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: Wipro said it is deepening its partnership with ServiceNow to automate enterprise workflows and expand agentic AI use cases across core business functions, reinforcing demand for ServiceNow’s platform. Wipro and ServiceNow deepen AI partnership to automate enterprise workflows
• Positive Sentiment: Unusually heavy call option buying in ServiceNow suggests traders are positioning for further upside, which can amplify momentum in the stock.
• Positive Sentiment: Recent commentary has highlighted ServiceNow’s solid Q1 results, with revenue growth of about 22% and earnings meeting expectations, supporting confidence in the company’s execution. ServiceNow (NOW) Stock Analysis: Evaluating the Investment Opportunity
• Neutral Sentiment: Analyst and media coverage continues to keep ServiceNow in focus, including discussions about how it can defend growth amid rising AI competition and attract larger enterprise AI budgets. Can ServiceNow Sustain Its Growth Amid Rising AI Competition?
• Neutral Sentiment: The stock is also benefiting from broader strength in software names, with recent market commentary noting software stocks rising while some chip makers lag. Oracle, Intel, and 8 Stocks That Explain the Market Today
• Negative Sentiment: Some recent articles raise the risk that intensifying AI competition could pressure ServiceNow’s long-term growth if it fails to keep differentiating its enterprise software stack.

Analyst Upgrades and Downgrades

A number of equities research analysts recently commented on the stock. Truist Financial lowered their price target on shares of ServiceNow from $125.00 to $120.00 and set a “buy” rating for the company in a report on Thursday, April 23rd. Royal Bank Of Canada restated an “outperform” rating and issued a $121.00 price objective on shares of ServiceNow in a report on Tuesday, May 5th. Wolfe Research set a $125.00 price objective on shares of ServiceNow in a report on Thursday, April 23rd. BTIG Research restated a “buy” rating and issued a $150.00 price objective on shares of ServiceNow in a report on Monday, May 4th. Finally, Citizens Jmp restated a “market outperform” rating and issued a $157.00 price objective on shares of ServiceNow in a report on Tuesday, May 5th. Two equities research 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 assigned a Sell rating to the stock. Based on data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and a consensus price target of $141.85.

ServiceNow Stock Up 6.3%

The company’s fifty day simple moving average is $98.00 and its 200 day simple moving average is $124.18. The firm has a market capitalization of $111.95 billion, a P/E ratio of 64.71, a price-to-earnings-growth ratio of 1.65 and a beta of 0.82. The company has a current ratio of 0.84, a quick ratio of 0.84 and a debt-to-equity ratio of 0.13.

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, hitting analysts’ consensus estimates of $0.97. The firm had revenue of $3.77 billion for the quarter, compared to the consensus estimate of $3.75 billion. ServiceNow had a net margin of 12.59% and a return on equity of 18.16%. The company’s revenue was up 22.1% compared to the same quarter last year. During the same period in the prior year, the firm earned $0.81 EPS. Research analysts expect that ServiceNow, Inc. will post 2.35 EPS for the current year.

Insider Buying and Selling at ServiceNow

In other news, Director Anita M. Sands sold 16,445 shares of the company’s stock in a transaction dated 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 sale, the director directly owned 30,090 shares of the company’s stock, valued at $2,712,312.60. This represents a 35.34% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Also, Director Paul Edward Chamberlain sold 1,500 shares of the company’s stock in a transaction dated 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 directly owned 44,930 shares in the company, 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. Insiders sold 28,071 shares of company stock valued at $2,529,956 over the last 90 days. 0.34% of the stock is owned by corporate insiders.

Institutional Trading of ServiceNow

Hedge funds and other institutional investors have recently modified their holdings of the business. Vanguard Group Inc. grew its position 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 increased 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 in the last quarter. Price T Rowe Associates Inc. MD increased 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 in the last quarter. Geode Capital Management LLC increased 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 in the last quarter. Finally, Morgan Stanley increased 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 in the last quarter. 87.18% of the stock is owned by hedge funds and other institutional investors.

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.