ServiceNow (NYSE:NOW) Shares Down 5.8% – Time to Sell?

ServiceNow, Inc. (NYSE:NOW) traded down 5.8% on Friday . The stock traded as low as $111.56 and last traded at $112.4530. 31,094,199 shares traded hands during trading, an increase of 30% from the average session volume of 23,956,029 shares. The stock had previously closed at $119.36.

ServiceNow News Roundup

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: New coverage highlights bullish catalysts for ServiceNow, including accelerating AI adoption, a model-agnostic architecture, and a possible path to $30 billion in revenue by 2030, which supports the long-term growth story. Article Title
• Positive Sentiment: Cognizant’s integration with ServiceNow’s AI Control Tower underscores growing demand for ServiceNow’s AI governance tools in regulated enterprise environments, potentially expanding use cases and customer adoption. Article Title
• Positive Sentiment: Analysts and recent commentary say EmployeeWorks is gaining traction quickly, with larger deals and broader AI adoption helping to reinforce ServiceNow’s growth narrative. Article Title
• Neutral Sentiment: ServiceNow’s recent conference appearances and transcript releases keep the company visible to investors, but they do not appear to contain a major new catalyst on their own. Article Title
• Neutral Sentiment: Some valuation-focused coverage notes that the stock has had a mixed year, with a strong recent bounce offset by weaker longer-term performance, suggesting investors are still debating whether the rebound is justified. Article Title
• Negative Sentiment: Multiple articles point to pressure on the shares from acquisition integration costs, deal delays, and intensifying competition, which are weighing on near-term expectations. Article Title
• Negative Sentiment: Friday’s decline is also being driven by a broader market sell-off, with enterprise software and other growth names facing risk-off trading as investors pull back from higher-valuation tech. Article Title
• Negative Sentiment: Additional commentary notes that large insider buying in ServiceNow occurred near the peak of earlier SaaS pessimism, highlighting how far sentiment and the stock have already fallen since then. Article Title

Wall Street Analysts Forecast Growth

Several analysts have recently weighed in on the stock. Mizuho dropped their price objective on shares of ServiceNow from $150.00 to $140.00 and set an “outperform” rating for the company in a report on Thursday, April 23rd. The Goldman Sachs Group decreased their price target on shares of ServiceNow from $188.00 to $163.00 and set a “buy” rating on the stock in a research note on Thursday, April 23rd. Citigroup increased their price target on shares of ServiceNow from $154.00 to $158.00 and gave the company a “buy” rating in a research note on Thursday, April 30th. UBS Group reissued an “outperform” rating on shares of ServiceNow in a research note on Tuesday, May 26th. Finally, Needham & Company LLC reissued a “buy” rating and set a $115.00 price target on shares of ServiceNow in a research note on Tuesday, May 5th. Two research analysts have rated the stock with a Strong Buy rating, thirty-five have given a Buy rating, five have issued a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average target price of $141.85.

ServiceNow Trading Down 5.8%

The business’s 50 day simple moving average is $99.48 and its 200-day simple moving average is $122.03. The stock has a market capitalization of $115.94 billion, a P/E ratio of 67.02, a PEG ratio of 1.86 and a beta of 0.94. The company has a debt-to-equity ratio of 0.13, a current ratio of 0.84 and a quick ratio of 0.84.

ServiceNow (NYSE:NOW) last announced its quarterly 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 company had revenue of $3.77 billion for the quarter, compared to analysts’ expectations of $3.75 billion. ServiceNow had a net margin of 12.59% and a return on equity of 18.16%. The business’s quarterly revenue was up 22.1% compared to the same quarter last year. During the same period last year, the firm posted $0.81 earnings per share. As a group, analysts forecast that ServiceNow, Inc. will post 2.35 EPS for the current year.

Insider Activity

In other news, Director Paul Edward Chamberlain sold 1,500 shares of ServiceNow stock in a transaction on Thursday, May 14th. The shares were sold at an average price of $87.23, for a total transaction of $130,845.00. Following the transaction, the director directly owned 44,930 shares of the company’s stock, valued at $3,919,243.90. This trade represents a 3.23% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Paul Fipps sold 1,048 shares of ServiceNow stock in a transaction on Monday, May 18th. The stock was sold at an average price of $98.51, for a total transaction of $103,238.48. Following the transaction, the insider directly owned 12,072 shares in the company, valued at approximately $1,189,212.72. This represents a 7.99% 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. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last three months, insiders sold 28,071 shares of company stock valued at $2,529,956. 0.34% of the stock is owned by company insiders.

Hedge Funds Weigh In On ServiceNow

Hedge funds and other institutional investors have recently made changes to their positions in the company. Caerus Investment Advisors LLC increased its position in shares of ServiceNow by 100.0% during the first quarter. Caerus Investment Advisors LLC now owns 7,030 shares of the information technology services provider’s stock worth $735,000 after acquiring an additional 3,515 shares in the last quarter. Integrated Investment Consultants LLC lifted its position in ServiceNow by 12.4% in the 1st quarter. Integrated Investment Consultants LLC now owns 3,011 shares of the information technology services provider’s stock valued at $315,000 after acquiring an additional 331 shares in the last quarter. Maripau Wealth Management LLC lifted its position in ServiceNow by 26.4% in the 1st quarter. Maripau Wealth Management LLC now owns 3,420 shares of the information technology services provider’s stock valued at $358,000 after acquiring an additional 715 shares in the last quarter. Westshore Wealth LLC lifted its position in ServiceNow by 0.8% in the 1st quarter. Westshore Wealth LLC now owns 16,233 shares of the information technology services provider’s stock valued at $1,697,000 after acquiring an additional 128 shares in the last quarter. Finally, Glenmede Trust Co. NA lifted its position in ServiceNow by 232.2% in the 1st quarter. Glenmede Trust Co. NA now owns 426,146 shares of the information technology services provider’s stock valued at $44,554,000 after acquiring an additional 297,879 shares in the last quarter. 87.18% of the stock is owned by 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.