Key Highlights
- Wall Street firms maintained Buy ratings on ServiceNow stock, with price objectives spanning $115 to $236
- The highest price target from Bernstein stands at $236, suggesting potential gains exceeding 157%
- Shares opened at $91.51, reflecting a 40.19% decline year-to-date and 55.11% drop across 12 months
- Bailard Inc. expanded its NOW holdings by 422.9% during Q4; institutional ownership reached 87.18%
- The company delivered Q1 revenues of $3.77 billion, marking 22.1% year-over-year growth and aligning with forecasts
ServiceNow (NOW) stock gained ground Monday as multiple Wall Street firms reaffirmed their positive outlook on the enterprise software provider, despite shares trading significantly below previous peak levels.
Shares commenced trading at $91.51, hovering close to the 12-month floor of $81.24. The stock reached a yearly peak of $211.48. Currently, NOW has declined 40.19% year-to-date and tumbled 55.11% over the trailing twelve months.
The steep decline hasn’t deterred Wall Street analysts from maintaining their bullish stance.
Bernstein’s Peter Weed maintains the highest Street target at $236, elevated from a prior $226 forecast, while preserving a Buy recommendation. This projection implies potential upside of 157% from present trading levels.
Michael Turrin of Wells Fargo confirmed a Buy rating paired with a $160 price objective. Citi’s Tyler Radke maintained his Buy recommendation alongside a $158 target. Goldman Sachs analyst Gabriela Borges similarly retained a Buy rating, establishing a $163 price goal.
The aggregate analyst rating stands at Moderate Buy, with the average price objective landing at $144.71, based on MarketBeat’s tracking data.
Major Investors Continue Accumulating Shares
While individual investor sentiment remains uncertain, institutional capital has been flowing in the opposite direction.
Bailard Inc. expanded its ServiceNow holdings by 422.9% during the fourth quarter, concluding the period with 79,350 shares valued at approximately $12.2 million. Multiple additional firms similarly increased their allocations.
Nicholas Company Inc. expanded its position by 532.6%, finishing the quarter holding 426,015 shares worth over $65 million. AG2R LA Mondiale Gestion D Actifs increased its stake by 437.5%. Pier 88 Investment Partners elevated its holdings by 393.2%.
Institutional investors and hedge funds collectively control 87.18% of NOW stock.
Concerning insider activity, the situation appears less encouraging. During the previous 90 days, company insiders divested 25,164 shares totaling approximately $2.5 million. Jacqueline P. Canney, an insider, sold 8,927 shares at an average of $89.60 in April, decreasing her holdings by 23.21%.
Latest Earnings Performance and Forward Outlook
ServiceNow disclosed first-quarter revenues of $3.77 billion, marginally surpassing the $3.75 billion analyst consensus. Earnings per share reached $0.97, meeting market expectations. Revenues climbed 22.1% compared to the prior-year period.
The enterprise software firm posted a net profit margin of 12.59% alongside an 18.16% return on equity.
ServiceNow plans to secure $4 billion through a bond offering, which market observers note introduces additional leverage without serving as a direct operational growth driver.
FedEx recently broadened its collaboration with ServiceNow, which analysts interpret as validation of sustained enterprise appetite for its automation and workflow solutions.
BMO Capital confirmed an Outperform rating, highlighting the platform’s strategic positioning around autonomous execution capabilities and governance frameworks.
Analyst consensus anticipates ServiceNow will deliver full-year earnings per share of $2.35. The stock’s 50-day moving average stands at $102.18, while the 200-day moving average sits at $131.38.
Monday’s trading volume totaled approximately 10 million shares, trailing the three-month average volume of 18 million shares.
