Key Highlights
- Wall Street firms maintain Buy recommendations on NOW stock with price objectives spanning $115 to $236
- Bernstein’s $236 target suggests potential gains exceeding 157% from present trading levels
- Shares opened at $91.51, reflecting a 40.19% YTD decline and 55.11% drop across 12 months
- Bailard Inc. expanded its NOW holdings by 422.9% during Q4; institutional ownership stands at 87.18%
- First quarter revenue reached $3.77 billion, representing 22.1% YoY growth and matching Street estimates
ServiceNow (NOW) stock registered modest gains Monday as multiple Wall Street investment firms maintained their positive outlook on the cloud software provider, despite the shares trading significantly below prior peaks.
Shares began trading at $91.51, hovering close to the 52-week floor of $81.24. The stock previously touched a 12-month ceiling of $211.48. NOW has surrendered 40.19% of its value year-to-date and fallen 55.11% across the trailing twelve months.
The steep decline hasn’t deterred Wall Street’s conviction.
Peter Weed from Bernstein maintains the highest Street forecast at $236āelevated from a prior $226āalongside a Buy recommendation. This projection implies a potential 157% appreciation from current price levels.
Michael Turrin at Wells Fargo affirmed his Buy stance with a $160 objective. Tyler Radke from Citi preserved his Buy rating and $158 target. Goldman Sachs analyst Gabriela Borges similarly sustained her Buy call with a $163 price goal.
Analyst consensus currently registers as Moderate Buy, featuring a mean price objective of $144.71, per MarketBeat tracking data.
Institutional Capital Flows Strengthen
While individual investor sentiment remains divided, large institutional players have demonstrated opposite behavior.
Bailard Inc. amplified its ServiceNow allocation by 422.9% during the fourth quarter, concluding the period holding 79,350 shares representing approximately $12.2 million. Multiple additional investment firms expanded their exposure.
Nicholas Company Inc. increased its ownership by 532.6%, finishing Q4 with 426,015 shares valued above $65 million. AG2R LA Mondiale Gestion D Actifs enlarged its stake by 437.5%. Pier 88 Investment Partners elevated its holdings by 393.2%.
Institutional investors and hedge funds now control 87.18% of NOW stock.
Company insiders present a contrasting narrative. Throughout the preceding 90 days, insiders disposed of 25,164 shares totaling approximately $2.5 million. Executive Jacqueline P. Canney divested 8,927 shares at a mean price of $89.60 during April, trimming her position by 23.21%.
Latest Financial Performance and Forward Outlook
ServiceNow disclosed first quarter revenues of $3.77 billion, marginally surpassing the consensus forecast of $3.75 billion. Earnings per share registered at $0.97, aligning with Street expectations. Top-line figures advanced 22.1% on a year-over-year basis.
The enterprise delivered a net profit margin of 12.59% alongside an 18.16% return on equity.
ServiceNow intends to secure $4 billion through corporate bond issuance, a move analysts characterize as balance sheet maneuvering rather than an operational catalyst.
FedEx recently broadened its collaboration with ServiceNow, which market watchers interpret as validation of sustained enterprise appetite for its workflow automation solutions.
BMO Capital reiterated its Outperform assessment, emphasizing the platform’s strategic positioning surrounding autonomous execution capabilities and governance frameworks.
Analysts project ServiceNow will deliver full-year earnings per share of $2.35. The equity’s 50-day moving average stands at $102.18, while its 200-day measure sits at $131.38.
Monday’s trading volume registered approximately 10 million shares, trailing the three-month average of 18 million.
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