ServiceNow (NYSE:NOW) Trading Down 2.9% on Insider Selling

ServiceNow, Inc. (NYSE:NOW)’s stock price fell 2.9% during trading on Friday following insider selling activity. The stock traded as low as $103.82 and last traded at $104.2230. 14,967,719 shares changed hands during mid-day trading, a decline of 25% from the average session volume of 19,994,188 shares. The stock had previously closed at $107.37.

Specifically, insider Paul Fipps sold 9,641 shares of the company’s stock in a transaction dated Wednesday, February 18th. The shares were sold at an average price of $105.93, for a total value of $1,021,271.13. Following the transaction, the insider directly owned 11,757 shares in the company, valued at approximately $1,245,419.01. This represents a 45.06% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website.

Wall Street Analyst Weigh In

Several research firms have recently weighed in on NOW. Needham & Company LLC reaffirmed a “buy” rating and set a $155.00 price target on shares of ServiceNow in a research note on Thursday, February 5th. Royal Bank Of Canada decreased their price objective on ServiceNow from $185.00 to $150.00 and set an “outperform” rating for the company in a report on Monday, February 9th. Canaccord Genuity Group set a $200.00 target price on shares of ServiceNow in a report on Thursday, January 29th. Sanford C. Bernstein restated an “outperform” rating on shares of ServiceNow in a report on Thursday, January 29th. Finally, Arete Research set a $200.00 price target on shares of ServiceNow in a research report on Tuesday, January 6th. Three equities research analysts have rated the stock with a Strong Buy rating, thirty-two have given a Buy rating, six have issued a Hold rating and two have given a Sell rating to the company. Based on data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and a consensus price target of $192.06.

Key ServiceNow News

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: CEO Bill McDermott bought roughly $3 million of NOW shares on the open market — a high‑visibility insider purchase that signals management confidence and likely helped limit the sell‑off. ServiceNow (NOW) CEO McDermott Bought $3 Million Worth Company Shares
• Positive Sentiment: BNP Paribas analysis flags valuation upside in select SaaS names (including ServiceNow) when adjusting for stock‑based compensation — a positive analyst/data point for medium‑term buyers. BNP Paribas analyzes SaaS valuations … sees upside in ServiceNow
• Positive Sentiment: ServiceNow management (President & COO Amit Zavery) reiterated that AI adoption is driving enterprise demand for the Now Platform — supportive messaging for revenue/booking momentum expectations. ServiceNow Sees AI Adoption Driving Enterprise Growth
• Neutral Sentiment: Tequity Advisors named a ServiceNow leader/M&A advisor — a sector hire that is unlikely to move the stock materially but indicates continued deal‑market interest. Tequity Advisors Welcomes Thomas Moewe as ServiceNow Leader, M&A Advisor
• Negative Sentiment: Director/insider Paul Fipps sold 9,641 shares (~$1.02M) on Feb. 18 — insider selling can be viewed negatively by traders even when not uncommon for tax/liquidity reasons. Paul Fipps Sells 9,641 Shares of ServiceNow Stock
• Negative Sentiment: Options flow shows a large, unusual buyer interest in puts (over 100k contracts recently) — elevated put volume signals hedging or directional bearish bets that can pressure near‑term sentiment.
• Negative Sentiment: Broader “SaaSpocalypse” / software‑stock rotation persists — high‑profile managers exiting software and media coverage of the sector slump are keeping downward pressure on NOW despite company‑specific positives. Why one of tech’s top fund managers just abandoned software stocks

ServiceNow Price Performance

The stock has a 50-day moving average price of $131.62 and a two-hundred day moving average price of $161.79. The company has a current ratio of 1.00, a quick ratio of 1.00 and a debt-to-equity ratio of 0.12. The stock has a market cap of $109.02 billion, a price-to-earnings ratio of 62.48, a PEG ratio of 1.76 and a beta of 0.97.

ServiceNow (NYSE:NOW) last released its quarterly earnings results on Wednesday, January 28th. The information technology services provider reported $0.92 EPS for the quarter, beating analysts’ consensus estimates of $0.89 by $0.03. The company 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 firm’s revenue was up 20.7% compared to the same quarter last year. During the same period last year, the business posted $0.73 earnings per share. As a group, equities research analysts forecast that ServiceNow, Inc. will post 8.93 EPS for the current year.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently made changes to their positions in the stock. Kilter Group LLC acquired a new position in shares of ServiceNow in the second quarter valued at about $25,000. IAG Wealth Partners LLC increased its holdings in ServiceNow by 200.0% in the 3rd quarter. IAG Wealth Partners LLC now owns 27 shares of the information technology services provider’s stock worth $25,000 after buying an additional 18 shares during the period. Total Investment Management Inc. purchased a new position in ServiceNow during the 2nd quarter worth approximately $31,000. Bogart Wealth LLC lifted its stake in ServiceNow by 93.8% during the 3rd quarter. Bogart Wealth LLC now owns 31 shares of the information technology services provider’s stock valued at $29,000 after acquiring an additional 15 shares during the period. Finally, Wealth Watch Advisors INC purchased a new stake in shares of ServiceNow in the 3rd quarter valued at $29,000. Hedge funds and other institutional investors own 87.18% of the company’s stock.

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.