ServiceNow Inc (NOW) Shares Decline Despite Market Challenges

The stock of ServiceNow Inc (NYSE: NOW) has decreased by -0.69 when compared to last closing price of 1021.84. Despite this, the company has experienced a -1.17% fall in its stock price over the last five trading sessions. fool.com reported 2025-05-19 that Wall Street has long been known to chase the flashiest names of the moment. The past couple of years have seen investors going after artificial intelligence (AI) chipmakers, meme stocks, and some highly sought-after initial public offerings (IPOs).

Is It Worth Investing in ServiceNow Inc (NYSE: NOW) Right Now?

The price-to-earnings ratio for ServiceNow Inc (NYSE: NOW) is above average at 137.75x. The 36-month beta value for NOW is also noteworthy at 0.96. There are mixed opinions on the stock, with 31 analysts rating it as a “buy,” 10 rating it as “overweight,” 6 rating it as “hold,” and 1 rating it as “sell.”

The public float for NOW is 206.13M, and at present, short sellers hold a 2.11% of that float. The average trading volume of NOW on May 22, 2025 was 1.99M shares.

NOW’s Market Performance

NOW’s stock has seen a -1.17% decrease for the week, with a 32.33% rise in the past month and a 4.83% gain in the past quarter. The volatility ratio for the week is 1.66%, and the volatility levels for the past 30 days are at 2.33% for ServiceNow Inc The simple moving average for the past 20 days is 2.75% for NOW’s stock, with a 7.44% simple moving average for the past 200 days.

Analysts’ Opinion of NOW

Many brokerage firms have already submitted their reports for NOW stocks, with BMO Capital Markets repeating the rating for NOW by listing it as a “Outperform.” The predicted price for NOW in the upcoming period, according to BMO Capital Markets is $1150 based on the research report published on May 14, 2025 of the current year 2025.

Truist, on the other hand, stated in their research note that they expect to see NOW reach a price target of $1200. The rating they have provided for NOW stocks is “Buy” according to the report published on May 01st, 2025.

BMO Capital Markets gave a rating of “Outperform” to NOW, setting the target price at $950 in the report published on April 22nd of the current year.

NOW Trading at 15.57% from the 50-Day Moving Average

After a stumble in the market that brought NOW to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -15.30% of loss for the given period.

Volatility was left at 2.33%, however, over the last 30 days, the volatility rate increased by 1.66%, as shares surge +24.86% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading +25.53% upper at present.

During the last 5 trading sessions, NOW fell by -1.17%, which changed the moving average for the period of 200-days by +28.35% in comparison to the 20-day moving average, which settled at $987.62. In addition, ServiceNow Inc saw -4.28% in overturn over a single year, with a tendency to cut further losses.

Insider Trading

Reports are indicating that there were more than several insider trading activities at NOW starting from Canney Jacqueline P, who sale 94 shares at the price of $1030.25 back on May 19 ’25. After this action, Canney Jacqueline P now owns 3,172 shares of ServiceNow Inc, valued at $96,844 using the latest closing price.

ELMER RUSSELL S, the General Counsel of ServiceNow Inc, sale 81 shares at $1030.25 during a trade that took place back on May 19 ’25, which means that ELMER RUSSELL S is holding 4,442 shares at $83,450 based on the most recent closing price.

Stock Fundamentals for NOW

Current profitability levels for the company are sitting at:

  • 0.13 for the present operating margin
  • 0.79 for the gross margin

The net margin for ServiceNow Inc stands at 0.13. The total capital return value is set at 0.12. Equity return is now at value 16.86, with 7.99 for asset returns.

Based on ServiceNow Inc (NOW), the company’s capital structure generated 0.19 points at debt to capital in total, while cash flow to debt ratio is standing at 1.92. The debt to equity ratio resting at 0.24. The interest coverage ratio of the stock is 64.48.

Currently, EBITDA for the company is 2.23 billion with net debt to EBITDA at -0.42. When we switch over and look at the enterprise to sales, we see a ratio of 18.23. The receivables turnover for the company is 8.44for trailing twelve months and the total asset turnover is 0.55. The liquidity ratio also appears to be rather interesting for investors as it stands at 1.06.

Conclusion

In summary, ServiceNow Inc (NOW) has had a mixed performance as of late. Analysts have mixed opinions on the stock, with some viewing it as a “buy” and others as a “hold”. It is worth mentioning that the stock is currently trading in close proximity to its 50-day moving average and its 52-week high.

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