ServiceNow (NYSE:NOW) Trading Down 2.9% on Analyst Downgrade

ServiceNow, Inc. (NYSE:NOW) dropped 2.9% during mid-day trading on Friday after Capital One Financial lowered their price target on the stock from $188.00 to $161.00. Capital One Financial currently has an overweight rating on the stock. ServiceNow traded as low as $126.85 and last traded at $127.34. Approximately 19,728,300 shares changed hands during mid-day trading, an increase of 74% from the average daily volume of 11,306,080 shares. The stock had previously closed at $131.17.

A number of other analysts have also weighed in on the company. Guggenheim raised ServiceNow from a “sell” rating to a “neutral” rating in a research note on Tuesday, December 16th. Barclays increased their target price on shares of ServiceNow from $242.00 to $245.00 and gave the stock an “overweight” rating in a report on Thursday, October 30th. The Goldman Sachs Group downgraded ServiceNow from a “buy” rating to a “sell” rating in a report on Monday, January 12th. DA Davidson set a $220.00 price objective on shares of ServiceNow and gave the stock a “buy” rating in a report on Tuesday, December 16th. Finally, BMO Capital Markets cut their target price on shares of ServiceNow from $232.00 to $230.00 and set an “outperform” rating on the stock in a research note on Thursday, October 30th. Three analysts have rated the stock with a Strong Buy rating, thirty-three have issued a Buy rating, five have given a Hold rating and two have issued a Sell rating to the stock. According to data from MarketBeat, ServiceNow has a consensus rating of “Moderate Buy” and a consensus price target of $214.40.

Insider Activity

In other ServiceNow news, insider Paul Fipps sold 1,525 shares of the firm’s stock in a transaction that occurred on Tuesday, November 18th. The shares were sold at an average price of $163.51, for a total transaction of $249,352.75. Following the sale, the insider owned 2,705 shares in the company, valued at approximately $442,294.55. This trade represents a 36.05% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Paul Edward Chamberlain sold 1,500 shares of the stock in a transaction on Friday, November 28th. The stock was sold at an average price of $161.60, for a total transaction of $242,400.00. Following the completion of the sale, the director directly owned 47,930 shares of the company’s stock, valued at approximately $7,745,488. This trade represents a 3.03% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last three months, insiders sold 15,310 shares of company stock worth $2,533,585. Insiders own 0.34% of the company’s stock.

More ServiceNow News

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: Analysts and commentators highlight ServiceNow’s AI-led workflow platform as a growth driver if enterprise AI adoption continues, supporting longer‑term upside. 1 Stock-Split Stock to Buy That Could Soar
• Positive Sentiment: ServiceNow completed a 5-for-1 stock split in December, boosting retail accessibility and liquidity — a structural tailwind for demand. 1 Stock-Split Stock to Buy That Could Soar
• Positive Sentiment: Piper Sandler named NOW among its top software picks for 2026, signaling meaningful upside expectations from a major sell‑side shop. Here’s Why ServiceNow (NOW) Was Among Piper Sandler’s Top Picks For 2026
• Positive Sentiment: Large institutional buys reported in recent quarters (e.g., Nordea, UBS additions) suggest conviction from some asset managers and provide a supportive ownership base. ServiceNow Stock (NOW) Opinions on Recent Price Drop
• Neutral Sentiment: Coverage comparing enterprise AI/workflow vendors highlights ServiceNow’s exposure to the AI automation market but notes competitive differences across players — useful context but not an immediate catalyst. Who is Winning AI Workflow Automation? We Compared 4 Enterprise Stocks.
• Neutral Sentiment: An integration with a smaller identity vendor (AuthID) briefly lifted that partner’s shares; partner integrations can incrementally expand use cases but are not a major standalone driver for NOW. AuthID Shares Cool Off After ServiceNow Integration
• Negative Sentiment: Analyst moves and price‑target cuts (including a recent downgrade that pushed the stock to a 52‑week low) are pressuring the share price and catalyzing selling. ServiceNow (NYSE:NOW) Sets New 52-Week Low on Analyst Downgrade
• Negative Sentiment: Extensive insider selling over recent months (many executive sales, few purchases) raises short‑term governance/optics concerns for some investors. ServiceNow Stock (NOW) Opinions on Recent Price Drop
• Negative Sentiment: Social media and chatter about the recent dip amplify volatility — some see a buying opportunity, but short‑term momentum favors sellers. ServiceNow Stock (NOW) Opinions on Recent Price Drop

Hedge Funds Weigh In On ServiceNow

Institutional investors have recently added to or reduced their stakes in the company. Highline Wealth Partners LLC increased its stake in ServiceNow by 1.8% in the 2nd quarter. Highline Wealth Partners LLC now owns 623 shares of the information technology services provider’s stock valued at $640,000 after purchasing an additional 11 shares in the last quarter. Richardson Financial Services Inc. grew its stake in ServiceNow by 50.0% in the 2nd quarter. Richardson Financial Services Inc. now owns 33 shares of the information technology services provider’s stock valued at $33,000 after acquiring an additional 11 shares during the last quarter. Brady Martz Wealth Solutions LLC lifted its holdings in shares of ServiceNow by 1.3% in the third quarter. Brady Martz Wealth Solutions LLC now owns 842 shares of the information technology services provider’s stock valued at $775,000 after purchasing an additional 11 shares in the last quarter. Magnus Financial Group LLC raised its position in shares of ServiceNow by 1.9% during the 3rd quarter. Magnus Financial Group LLC now owns 589 shares of the information technology services provider’s stock worth $542,000 after purchasing an additional 11 shares during the last quarter. Finally, Avidian Wealth Enterprises LLC increased its position in ServiceNow by 2.5% during the third quarter. Avidian Wealth Enterprises LLC now owns 453 shares of the information technology services provider’s stock worth $417,000 after buying an additional 11 shares in the last quarter. Hedge funds and other institutional investors own 87.18% of the company’s stock.

ServiceNow Price Performance

The company has a 50-day moving average price of $157.85 and a 200-day moving average price of $175.84. The firm has a market capitalization of $132.23 billion, a PE ratio of 76.99, a P/E/G ratio of 2.19 and a beta of 0.98. The company has a debt-to-equity ratio of 0.13, a current ratio of 1.06 and a quick ratio of 1.06.

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.