1,167,341 Shares in ServiceNow, Inc. $NOW Purchased by Freestone Grove Partners LP

Key Points

• Freestone Grove Partners LP acquired 1,167,341 ServiceNow shares worth approximately $115.9 million, giving the fund a 0.11% stake. Institutional investors collectively own 87.18% of the company.
• ServiceNow exceeded quarterly expectations, reporting $0.90 in EPS versus $0.86 expected and $3.99 billion in revenue, up 24% year over year.
• The company’s AI partnerships and ecosystem expansion support its growth outlook, but its elevated valuation and recent rally have increased concerns about profit-taking and downside risk. Analysts maintain a “Moderate Buy” consensus with a $144.24 average price target.

Freestone Grove Partners LP acquired a new position in shares of ServiceNow, Inc. (NYSE:NOW - Free Report) during the second quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund acquired 1,167,341 shares of the information technology services provider's stock, valued at approximately $115,894,000. ServiceNow comprises approximately 0.7% of Freestone Grove Partners LP's holdings, making the stock its 17th largest holding. Freestone Grove Partners LP owned 0.11% of ServiceNow at the end of the most recent quarter.

Several other hedge funds have also made changes to their positions in the company. Millstone Evans Group LLC raised its stake in shares of ServiceNow by 400.0% in the 4th quarter. Millstone Evans Group LLC now owns 165 shares of the information technology services provider's stock valued at $25,000 after acquiring an additional 132 shares during the period. CBIZ Investment Advisory Services LLC raised its position in ServiceNow by 540.0% in the fourth quarter. CBIZ Investment Advisory Services LLC now owns 160 shares of the information technology services provider's stock valued at $25,000 after purchasing an additional 135 shares during the period. Blueline Advisors LLC acquired a new position in ServiceNow during the fourth quarter worth $25,000. Measured Wealth Private Client Group LLC lifted its stake in ServiceNow by 560.0% during the fourth quarter. Measured Wealth Private Client Group LLC now owns 165 shares of the information technology services provider's stock worth $25,000 after purchasing an additional 140 shares in the last quarter. Finally, Wealth Watch Advisors INC boosted its position in shares of ServiceNow by 432.3% during the fourth quarter. Wealth Watch Advisors INC now owns 165 shares of the information technology services provider's stock worth $25,000 after buying an additional 134 shares during the period. Hedge funds and other institutional investors own 87.18% of the company's stock.

ServiceNow Price Performance

Shares of NYSE NOW opened at $125.68 on Thursday. The company has a debt-to-equity ratio of 0.43, a current ratio of 0.70 and a quick ratio of 0.70. The company has a market cap of $129.95 billion, a price-to-earnings ratio of 78.55, a price-to-earnings-growth ratio of 2.23 and a beta of 0.94. The stock's 50-day moving average is $110.48 and its two-hundred day moving average is $106.06. ServiceNow, Inc. has a 1-year low of $81.24 and a 1-year high of $194.73.

ServiceNow (NYSE:NOW - Get Free Report) last announced its quarterly earnings data on Wednesday, July 22nd. The information technology services provider reported $0.90 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.86 by $0.04. ServiceNow had a return on equity of 16.45% and a net margin of 11.34%.The business had revenue of $3.99 billion during the quarter, compared to analysts' expectations of $3.93 billion. During the same quarter last year, the business posted $0.81 EPS. The business's quarterly revenue was up 24.0% compared to the same quarter last year. Analysts forecast that ServiceNow, Inc. will post 2.24 EPS for the current fiscal year.

Insiders Place Their Bets

In related news, Director Paul Edward Chamberlain sold 1,500 shares of the firm's stock in a transaction that occurred on Thursday, August 13th. The shares were sold at an average price of $125.60, for a total value of $188,400.00. Following the sale, the director owned 46,690 shares of the company's stock, valued at $5,864,264. This trade represents a 3.11% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 0.34% of the stock is currently owned by company insiders.

Key Headlines Impacting ServiceNow

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: ServiceNow expanded its AI ecosystem through a multiyear partnership with Tech Mahindra, which is intended to scale enterprise AI deployments on the ServiceNow platform. The agreement supports the company’s positioning as an “AI control tower” and could drive additional platform adoption. ServiceNow In Focus Following Tech Mahindra AI Deal
• Positive Sentiment: Pricefx announced an integration that brings AI-powered pricing and deal optimization into ServiceNow sales workflows, including negotiation guidance, product recommendations and sales-agent capabilities. Such integrations may increase the platform’s usefulness and strengthen its enterprise software ecosystem. Pricefx Announces Integration with ServiceNow
• Positive Sentiment: Recent commentary remains bullish on ServiceNow’s AI growth potential, while CoreX, an elite ServiceNow partner, launched AI Horizon to help enterprises adopt AI-native workflows on the company’s platform. CoreX Launches AI Horizon
• Neutral Sentiment: Bank of America’s higher price targets for software stocks suggest improving sentiment toward the sector, although broader market futures were weaker and the benefit to NOW may be limited. Bank of America Raises Software Price Targets
• Negative Sentiment: ServiceNow shares moved lower as investors took profits following an approximately 29% one-month rally. Cooling momentum indicators and technical resistance near $150 have increased near-term selling pressure. What’s Going On With ServiceNow Stock Wednesday?
• Negative Sentiment: Investors are also assessing fair value after the rally, including the impact of a separate employee stock offering. ServiceNow’s elevated valuation leaves the stock vulnerable if AI monetization fails to accelerate.
• Negative Sentiment: Broader software-sector volatility, leveraged trading and concerns that AI-built applications could eventually displace traditional SaaS platforms are adding risk. Datadog was judged to have an edge over NOW on growth and earnings momentum, another potential rotation headwind. Momentum and Leveraged Trading Keep Software Stocks Volatile

Wall Street Analyst Weigh In

NOW has been the subject of a number of research reports. Barclays reaffirmed an "overweight" rating and issued a $134.00 price objective (up from $132.00) on shares of ServiceNow in a research note on Tuesday, May 5th. BTIG Research restated a "buy" rating and set a $150.00 target price on shares of ServiceNow in a report on Wednesday, July 22nd. Truist Financial lifted their target price on ServiceNow from $120.00 to $130.00 and gave the company a "buy" rating in a research report on Thursday, July 9th. UBS Group set a $248.00 price target on shares of ServiceNow in a research note on Thursday, July 23rd. Finally, KeyCorp reissued an "underweight" rating on shares of ServiceNow in a research note on Tuesday, July 21st. One analyst has rated the stock with a Strong Buy rating, thirty-six have given a Buy rating, three have given a Hold rating and two have assigned a Sell rating to the company. Based on data from MarketBeat, the company has an average rating of "Moderate Buy" and a consensus price target of $144.24.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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