ServiceNow (NYSE:NOW) Stock Price Up 7.4% After Analyst Upgrade

ServiceNow, Inc. (NYSE:NOW)’s share price shot up 7.4% during mid-day trading on Friday after JPMorgan Chase & Co. raised their price target on the stock from $145.00 to $150.00. JPMorgan Chase & Co. currently has an overweight rating on the stock. ServiceNow traded as high as $98.93 and last traded at $98.7710. 29,481,701 shares traded hands during trading, an increase of 23% from the average daily volume of 23,906,777 shares. The stock had previously closed at $91.94.

NOW has been the subject of a number of other research reports. Sanford C. Bernstein reaffirmed an “outperform” rating and set a $248.00 price target (up from $236.00) on shares of ServiceNow in a report on Thursday. Argus decreased their price objective on shares of ServiceNow from $180.00 to $134.00 and set a “buy” rating on the stock in a research note on Friday, April 24th. Jefferies Financial Group restated a “buy” rating and set a $140.00 price objective (up from $135.00) on shares of ServiceNow in a research report on Thursday. Evercore restated an “outperform” rating and set a $160.00 target price on shares of ServiceNow in a research note on Thursday. Finally, CLSA assumed coverage on ServiceNow in a report on Monday, July 20th. They issued an “underperform” rating and a $72.00 target price on the stock. One research analyst has rated the stock with a Strong Buy rating, thirty-six have issued a Buy rating, two have issued a Hold rating and three have assigned a Sell rating to the stock. Based on data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average target price of $143.39.

Insider Activity at ServiceNow

In related news, Director Anita M. Sands sold 16,445 shares of the stock in a transaction that occurred on 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 completion of the transaction, the director 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 sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, Director Paul Edward Chamberlain sold 1,500 shares of the firm’s stock in a transaction that occurred 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 completion of the sale, the director owned 44,930 shares in the company, valued at $3,919,243.90. This represents a 3.23% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders have sold 19,144 shares of company stock valued at $1,730,097. 0.34% of the stock is owned by insiders.

ServiceNow News Roundup

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: ServiceNow’s Q2 results showed robust growth, with revenue up about 24% year over year and subscription revenue accelerating, reinforcing that demand for its platform remains strong. Article Title
• Positive Sentiment: Management raised guidance and highlighted AI momentum, including AI contract value topping $1 billion and expanding enterprise adoption, which supports the case for continued growth. Article Title
• Positive Sentiment: Several analysts raised or reaffirmed bullish ratings and price targets after earnings, reflecting renewed confidence in ServiceNow’s outlook and valuation upside. Article Title
• Positive Sentiment: New partnerships and channel expansions, including deals with Experian, TeamViewer, and Exclusive Networks, suggest broader adoption of ServiceNow’s AI and cybersecurity offerings. Article Title
• Neutral Sentiment: Investors are also watching mixed signals from insider and institutional trading, with some large funds trimming positions even as others add shares; this appears more like portfolio rebalancing than a clear fundamental warning. Article Title
• Negative Sentiment: Despite the earnings beat, some commentary says the stock’s rally may be vulnerable if AI disruption fears return, especially around usage-based pricing and long-term software demand. Article Title

Institutional Investors Weigh In On ServiceNow

Hedge funds have recently modified their holdings of the company. Wedge Capital Management L L P NC increased its holdings in ServiceNow by 5.4% in the 2nd quarter. Wedge Capital Management L L P NC now owns 2,512 shares of the information technology services provider’s stock worth $249,000 after purchasing an additional 129 shares in the last quarter. Investors Research Corp boosted its stake in shares of ServiceNow by 787.2% during the second quarter. Investors Research Corp now owns 7,674 shares of the information technology services provider’s stock valued at $762,000 after purchasing an additional 6,809 shares in the last quarter. Tema ETFs LLC boosted its stake in shares of ServiceNow by 10.0% during the second quarter. Tema ETFs LLC now owns 20,679 shares of the information technology services provider’s stock valued at $2,053,000 after purchasing an additional 1,885 shares in the last quarter. Canvas Wealth Advisors LLC grew its holdings in shares of ServiceNow by 60.7% during the second quarter. Canvas Wealth Advisors LLC now owns 28,524 shares of the information technology services provider’s stock worth $2,832,000 after purchasing an additional 10,773 shares during the last quarter. Finally, Fiduciary Financial Group LLC bought a new stake in shares of ServiceNow during the second quarter worth about $404,000. Institutional investors and hedge funds own 87.18% of the company’s stock.

ServiceNow Price Performance

The company has a 50 day moving average price of $104.77 and a 200-day moving average price of $107.70. The company has a quick ratio of 0.84, a current ratio of 0.70 and a debt-to-equity ratio of 0.43. The company has a market cap of $101.83 billion, a price-to-earnings ratio of 61.73, a P/E/G ratio of 1.65 and a beta of 0.96.

ServiceNow (NYSE:NOW) last posted its earnings results on Wednesday, July 22nd. The information technology services provider reported $0.90 EPS for the quarter, topping the consensus estimate of $0.86 by $0.04. ServiceNow had a net margin of 11.34% and a return on equity of 16.45%. The business had revenue of $3.99 billion for the quarter, compared to the consensus estimate of $3.93 billion. During the same period last year, the company earned $0.81 EPS. The firm’s revenue was up 24.0% compared to the same quarter last year. As a group, equities research analysts predict that ServiceNow, Inc. will post 2.33 EPS for the current fiscal year.

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.