ServiceNow’s (NOW) Buy Rating Reiterated at Needham & Company LLC

Needham & Company LLC reissued their buy rating on shares of ServiceNow (NYSE:NOW) in a report issued on Thursday morning,Benzinga reports. They currently have a $155.00 target price on the information technology services provider’s stock.

A number of other brokerages have also recently weighed in on NOW. Arete Research set a $200.00 price target on shares of ServiceNow in a research report on Tuesday, January 6th. Canaccord Genuity Group set a $200.00 target price on shares of ServiceNow in a report on Thursday, January 29th. Barclays boosted their target price on ServiceNow from $242.00 to $245.00 and gave the company an “overweight” rating in a research report on Thursday, October 30th. Royal Bank Of Canada lowered their price target on ServiceNow from $195.00 to $185.00 and set an “outperform” rating for the company in a research report on Thursday, January 29th. Finally, Deutsche Bank Aktiengesellschaft set a $180.00 price objective on ServiceNow in a report 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 issued a Hold rating and two have given a Sell rating to the stock. According to data from MarketBeat.com, ServiceNow currently has a consensus rating of “Moderate Buy” and a consensus target price of $193.01.

ServiceNow Price Performance

NOW stock opened at $100.78 on Thursday. ServiceNow has a 52-week low of $98.94 and a 52-week high of $211.48. The company has a quick ratio of 1.00, a current ratio of 1.00 and a debt-to-equity ratio of 0.12. The stock has a market cap of $105.42 billion, a price-to-earnings ratio of 60.42, a price-to-earnings-growth ratio of 1.71 and a beta of 0.97. The business has a fifty day moving average of $144.39 and a two-hundred day moving average of $167.80.

ServiceNow (NYSE:NOW) last released its quarterly earnings results on Wednesday, January 28th. The information technology services provider reported $0.92 earnings per share for the quarter, topping analysts’ consensus estimates of $0.89 by $0.03. The business had revenue of $3.57 billion during the quarter, compared to analysts’ expectations of $3.53 billion. ServiceNow had a return on equity of 18.54% and a net margin of 13.16%.The company’s revenue was up 20.7% compared to the same quarter last year. During the same period in the prior year, the business posted $0.73 EPS. As a group, research analysts anticipate that ServiceNow will post 8.93 earnings per share for the current year.

Insider Activity at ServiceNow

In other ServiceNow news, Director Lawrence Jackson sold 1,325 shares of the stock in a transaction dated Friday, November 28th. The stock was sold at an average price of $162.04, for a total value of $214,708.30. Following the sale, the director owned 1,615 shares of the company’s stock, valued at $261,701.06. This trade represents a 45.07% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, insider Paul Fipps sold 1,525 shares of the business’s stock in a transaction dated Tuesday, November 18th. The stock was sold at an average price of $163.51, for a total value of $249,352.75. Following the transaction, the insider directly owned 2,705 shares of the company’s stock, valued at approximately $442,294.55. This represents a 36.05% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 15,310 shares of company stock worth $2,533,585 over the last quarter. 0.34% of the stock is currently owned by insiders.

Institutional Investors Weigh In On ServiceNow

A number of hedge funds and other institutional investors have recently modified their holdings of the company. Vanguard Group Inc. boosted its position in shares of 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 worth $15,619,771,000 after acquiring an additional 81,752,460 shares in the last quarter. State Street Corp lifted its stake in ServiceNow by 1.4% during the third quarter. State Street Corp now owns 9,454,699 shares of the information technology services provider’s stock worth $8,700,970,000 after purchasing an additional 131,080 shares during the last quarter. Jennison Associates LLC lifted its stake in ServiceNow by 280.1% during the fourth quarter. Jennison Associates LLC now owns 8,432,389 shares of the information technology services provider’s stock worth $1,291,758,000 after purchasing an additional 6,213,762 shares during the last quarter. Nordea Investment Management AB boosted its holdings in ServiceNow by 388.7% in the fourth quarter. Nordea Investment Management AB now owns 4,706,164 shares of the information technology services provider’s stock valued at $720,325,000 after purchasing an additional 3,743,087 shares in the last quarter. Finally, Geode Capital Management LLC increased its stake in ServiceNow by 2.0% in the second quarter. Geode Capital Management LLC now owns 4,574,563 shares of the information technology services provider’s stock valued at $4,684,445,000 after purchasing an additional 88,057 shares during the last quarter. 87.18% of the stock is currently owned by institutional investors and hedge funds.

ServiceNow News Summary

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: Company announced a sizable buyback program and an accelerated share repurchase (ASR) that signals management confidence and will immediately reduce float; that boost in capital-return activity supports upside if fundamentals hold.
• Positive Sentiment: Analyst upgrade: Argus moved NOW to a “strong‑buy,” adding buy-side momentum and validating the stock as an attractive entry for some investors. Zacks/Argus Upgrade
• Positive Sentiment: Needham reaffirmed its Buy rating with a $155 price target (material upside from current levels), reinforcing sell-off buyers who view weakness as a buying opportunity. TipRanks / Needham Note
• Positive Sentiment: ServiceNow deepened its AI platform strategy via a partnership with Anthropic, which supports the company’s product roadmap and helps counter narratives that new AI entrants will quickly displace incumbents. Forbes: Anthropic Partnership
• Neutral Sentiment: BetterInvesting published commentary questioning fair value after recent moves — a reminder that valuation debates persist even as management acts to support the share price. PR Newswire: BetterInvesting Update
• Negative Sentiment: Sectorwide AI fears and a broader software selloff pushed NOW (and peers) sharply lower — ServiceNow dropped nearly 8% on one session as investors punished software names over disruption concerns. This macro/sector pressure is the primary driver of today’s decline. Fool: Why NOW Tumbled CNBC: AI Fears Hammer Software
• Negative Sentiment: Broader “SaaSpocalypse” narratives and articles highlighting deep drawdowns in cloud/software names amplify investor caution; even with solid fundamentals, sentiment-driven selling can prolong weakness. 247WallSt: SaaSpocalypse

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.