ServiceNow (NYSE:NOW) Stock Falls 3.3% – Here’s What Happened

ServiceNow, Inc. (NYSE:NOW) traded down 3.3% on Tuesday. The stock traded as low as $97.00 and last traded at $99.3530. 18,668,973 shares changed hands during trading, a decline of 13% from the average daily volume of 21,554,979 shares. The stock had previously closed at $102.76.

Key ServiceNow News

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: Kyndryl launched its AI-powered Autonomous Operations offering for ServiceNow, designed to automate remediation and help customers improve productivity and reduce risk. Kyndryl partnership article
• Positive Sentiment: Broward County, Florida, went live with ServiceNow IT Service Management and Workflow Data Fabric, providing evidence of adoption of its workflow and AI-related tools in government. Broward County article
• Neutral Sentiment: ServiceNow’s latest reported quarter showed revenue growth of 20.5% year over year and slightly exceeded revenue estimates, though earnings per share narrowly missed expectations.
• Negative Sentiment: Anthropic’s launch of Claude Sheets, Claude Whiteboards and Claude Data weighed on software shares as investors reassessed the threat that expanding AI tools could compete with established enterprise software. Anthropic AI tools article
• Negative Sentiment: ServiceNow shares have fallen about 30% over the past month, with much of the decline following its October 28 earnings report. The sharp pullback signals heightened investor concerns about its outlook and valuation despite continued revenue growth. Stock decline analysis

Analyst Ratings Changes

Several research firms have issued reports on NOW. Needham & Company LLC raised their price target on shares of ServiceNow from $115.00 to $155.00 and gave the stock a “buy” rating in a research report on Friday, September 11th. Benchmark reaffirmed a “buy” rating on shares of ServiceNow in a research report on Friday, July 17th. Weiss Ratings cut shares of ServiceNow from a “hold (c)” rating to a “hold (c-)” rating in a research note on Friday, October 30th. Citigroup decreased their target price on ServiceNow from $170.00 to $157.00 and set a “buy” rating on the stock in a research report on Thursday, October 29th. Finally, Piper Sandler restated an “overweight” rating and set a $175.00 price target on shares of ServiceNow in a research note on Thursday, October 29th. One investment analyst has rated the stock with a Strong Buy rating, thirty-six have given a Buy rating, three have issued a Hold rating and three have given a Sell rating to the stock. According to MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $154.50.

ServiceNow Trading Down 3.3%

The company has a debt-to-equity ratio of 0.42, a quick ratio of 0.72 and a current ratio of 0.72. The company has a market capitalization of $103.13 billion, a price-to-earnings ratio of 71.48, a P/E/G ratio of 2.13 and a beta of 1.00. The business’s 50-day simple moving average is $135.47 and its 200-day simple moving average is $114.69.

ServiceNow (NYSE:NOW) last announced its quarterly earnings results on Wednesday, October 28th. The information technology services provider reported $1.00 earnings per share for the quarter, missing analysts’ consensus estimates of $1.02 by ($0.02). ServiceNow had a net margin of 9.36% and a return on equity of 15.17%. The firm had revenue of $4.11 billion during the quarter, compared to analyst estimates of $4.09 billion. During the same quarter in the prior year, the business earned $4.82 earnings per share. The business’s revenue was up 20.5% on a year-over-year basis. On average, research analysts expect that ServiceNow, Inc. will post 2.12 earnings per share for the current fiscal year.

Insider Transactions at ServiceNow

In other news, insider Paul Fipps sold 2,034 shares of the stock in a transaction dated Monday, August 31st. The shares were sold at an average price of $147.87, for a total value of $300,767.58. Following the transaction, the insider directly owned 18,305 shares of the company’s stock, valued at $2,706,760.35. This represents a 10.00% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, insider Jacqueline Canney sold 7,847 shares of the stock in a transaction that occurred on Friday, August 28th. The stock was sold at an average price of $138.00, for a total value of $1,082,886.00. Following the transaction, the insider owned 30,042 shares in the company, valued at approximately $4,145,796. This trade represents a 20.71% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 14,081 shares of company stock worth $1,937,904 in the last ninety days. Insiders own 0.34% of the company’s stock.

Institutional Trading of ServiceNow

Hedge funds and other institutional investors have recently modified their holdings of the stock. Z3 Capital Partners LLC raised its position in shares of ServiceNow by 29.5% in the third quarter. Z3 Capital Partners LLC now owns 17,380 shares of the information technology services provider’s stock valued at $2,329,000 after purchasing an additional 3,960 shares during the period. Voya Investment Management LLC grew its position in ServiceNow by 391.3% during the third quarter. Voya Investment Management LLC now owns 2,994,141 shares of the information technology services provider’s stock worth $401,245,000 after buying an additional 2,384,724 shares in the last quarter. Public Sector Pension Investment Board grew its holdings in shares of ServiceNow by 68.2% during the third quarter. Public Sector Pension Investment Board now owns 309,775 shares of the information technology services provider’s stock worth $43,214,000 after purchasing an additional 125,571 shares in the last quarter. Rothschild Investment LLC purchased a new position in ServiceNow in the 3rd quarter worth approximately $4,495,000. Finally, Cibc World Market Inc. increased its stake in ServiceNow by 12.4% in the third quarter. Cibc World Market Inc. now owns 415,742 shares of the information technology services provider’s stock valued at $55,714,000 after acquiring an additional 45,733 shares during the last quarter. Institutional investors own 87.18% of the company’s stock.

ServiceNow Company Profile

ServiceNow, Inc. provides cloud-based software that helps organizations manage digital workflows and automate business processes. Founded in 2004 by Fred Luddy, the company began with a focus on IT service management and has expanded its platform to support a range of enterprise operations. Its products include tools for IT service and operations management, customer service, human resources, security, and application development. ServiceNow also offers artificial intelligence capabilities, including tools designed to help organizations automate tasks and find information across workflows.