ServiceNow (NYSE:NOW) Trading Down 1.6% – Time to Sell?

23 Dec 2025, 17:32 by Scott Moore · The Cerbat Gem

ServiceNow, Inc. (NYSE:NOW – Get Free Report)’s share price fell 1.6% on Tuesday . The company traded as low as $151.63 and last traded at $154.1780. 12,078,910 shares were traded during trading, an increase of 44% from the average session volume of 8,360,257 shares. The stock had previously closed at $156.68.

Key Headlines Impacting ServiceNow

Here are the key news stories impacting ServiceNow this week:

Positive Sentiment: Acquisition strengthens cybersecurity and AI strategy — ServiceNow agreed to buy Armis for $7.75 billion in cash to build a unified cyber exposure and operations stack that covers IT, OT, medical devices and other connected assets; management says the deal accelerates the company’s push to be an “AI control tower” for security. Read More.
Positive Sentiment: Analysts view the deal as accretive for security growth — Raymond James (and other analysts cited) reiterated bullish views and a Buy stance, arguing Armis strengthens ServiceNow’s security and OT capabilities and supports revenue expansion. Read More.
Positive Sentiment: Management sees a larger market opportunity — CEO commentary and coverage suggest the acquisition could more than triple ServiceNow’s addressable market in security/OT, a long-term growth rationale investors should consider. Read More.
Neutral Sentiment: Deal specifics and timing — the $7.75B cash transaction is expected to close in the second half of 2026; integration and regulatory clearance timelines remain uncertain. Read More.
Neutral Sentiment: CEO media appearances clarify strategy — Bill McDermott has been speaking to major outlets to explain the cybersecurity push and AI rationale, which could calm or convince investors depending on execution. Read More.
Negative Sentiment: Market reaction and cash outlay concerns — some investors are spooked by the size and all-cash nature of the deal, prompting near-term selling and questions about valuation and ROI. Read More.
Negative Sentiment: Critics argue Armis may be overpriced with unclear synergies — skeptical commentary highlights integration risk and doubts about immediate revenue synergies. Read More.

Wall Street Analysts Forecast Growth

A number of research firms have commented on NOW. DA Davidson set a $220.00 target price on shares of ServiceNow and gave the stock a “buy” rating in a research report on Tuesday, December 16th. JPMorgan Chase & Co. raised their price target on ServiceNow from $204.00 to $215.00 and gave the stock an “overweight” rating in a research note on Thursday, October 30th. Wall Street Zen cut ServiceNow from a “buy” rating to a “hold” rating in a research report on Wednesday, December 3rd. Citigroup increased their target price on ServiceNow from $246.80 to $250.60 and gave the company a “buy” rating in a report on Thursday, October 30th. Finally, Canaccord Genuity Group reissued a “buy” rating and issued a $224.00 target price on shares of ServiceNow in a research report on Thursday, October 30th. One research analyst has rated the stock with a Strong Buy rating, thirty-two have given a Buy rating, six have given a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and a consensus target price of $225.09.

Read Our Latest Research Report on ServiceNow

ServiceNow Stock Performance

The business has a 50-day simple moving average of $171.48 and a 200 day simple moving average of $182.91. The company has a debt-to-equity ratio of 0.13, a current ratio of 1.06 and a quick ratio of 1.06. The firm has a market cap of $160.10 billion, a PE ratio of 93.22, a PEG ratio of 3.23 and a beta of 0.97.

Insider Activity at ServiceNow

In other ServiceNow news, CFO Gina Mastantuono sold 2,075 shares of ServiceNow stock in a transaction that occurred on Friday, December 5th. The shares were sold at an average price of $170.00, for a total transaction of $352,750.00. Following the transaction, the chief financial officer owned 61,140 shares of the company’s stock, valued at $10,393,800. The trade was a 3.28% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, insider Paul Fipps sold 1,525 shares of the stock in a transaction on Tuesday, November 18th. The stock was sold at an average price of $163.51, for a total transaction of $249,352.75. Following the completion of the sale, the insider directly owned 2,705 shares of the company’s stock, valued at approximately $442,294.55. This trade represents a 36.05% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 15,310 shares of company stock worth $2,533,585 in the last 90 days. Insiders own 0.34% of the company’s stock.

Hedge Funds Weigh In On ServiceNow

Large investors have recently made changes to their positions in the business. Wealth Preservation Advisors LLC purchased a new stake in ServiceNow in the first quarter valued at approximately $382,000. Cascade Investment Group Inc. increased its holdings in shares of ServiceNow by 12.8% in the 1st quarter. Cascade Investment Group Inc. now owns 451 shares of the information technology services provider’s stock valued at $359,000 after acquiring an additional 51 shares during the period. Klingman & Associates LLC raised its position in ServiceNow by 22.2% in the 2nd quarter. Klingman & Associates LLC now owns 533 shares of the information technology services provider’s stock valued at $548,000 after purchasing an additional 97 shares during the last quarter. Ethic Inc. boosted its stake in ServiceNow by 1.6% during the 2nd quarter. Ethic Inc. now owns 25,496 shares of the information technology services provider’s stock worth $26,067,000 after purchasing an additional 397 shares during the period. Finally, Howard Capital Management Inc. boosted its stake in ServiceNow by 32.0% during the 2nd quarter. Howard Capital Management Inc. now owns 1,465 shares of the information technology services provider’s stock worth $1,506,000 after purchasing an additional 355 shares during the period. 87.18% of the stock is currently owned by hedge funds and other institutional investors.

ServiceNow Company Profile

(Get Free Report)

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.