196,715 Shares in ServiceNow, Inc. $NOW Acquired by Varma Mutual Pension Insurance Co

Key Points

• Varma Mutual Pension Insurance Co. acquired 196,715 ServiceNow shares worth approximately $19.5 million in the second quarter. Institutional investors collectively own 87.18% of the company.
• Analyst sentiment remains broadly positive: ServiceNow has a consensus “Moderate Buy” rating and an average price target of $144.24, despite some target-price reductions and concerns about its premium valuation and AI-native competitors.
• ServiceNow’s latest quarterly results exceeded expectations, with EPS of $0.90 versus $0.86 expected and revenue of $3.99 billion, up 24% year over year. The company is also expanding AI partnerships, including with Tech Mahindra, to support enterprise AI deployments.

Varma Mutual Pension Insurance Co bought a new stake in ServiceNow, Inc. (NYSE:NOW - Free Report) during the 2nd quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The firm bought 196,715 shares of the information technology services provider's stock, valued at approximately $19,530,000.

Other hedge funds have also recently added to or reduced their stakes in the company. Vanguard Group Inc. grew its stake in shares of ServiceNow by 404.5% in the fourth quarter. Vanguard Group Inc. now owns 101,963,384 shares of the information technology services provider's stock worth $15,619,771,000 after purchasing an additional 81,752,460 shares in the last quarter. BlackRock Inc. bought a new stake in shares of ServiceNow during the second quarter valued at about $9,536,615,000. State Street Corp raised its stake in shares of ServiceNow by 406.6% during the fourth quarter. State Street Corp now owns 47,896,597 shares of the information technology services provider's stock valued at $7,337,280,000 after purchasing an additional 38,441,898 shares in the last quarter. Price T Rowe Associates Inc. MD lifted its holdings in ServiceNow by 371.0% in the fourth quarter. Price T Rowe Associates Inc. MD now owns 32,395,663 shares of the information technology services provider's stock worth $4,962,692,000 after purchasing an additional 25,517,218 shares during the period. Finally, Geode Capital Management LLC lifted its holdings in ServiceNow by 404.8% in the fourth quarter. Geode Capital Management LLC now owns 23,512,428 shares of the information technology services provider's stock worth $3,591,425,000 after purchasing an additional 18,854,775 shares during the period. Institutional investors own 87.18% of the company's stock.

Analyst Upgrades and Downgrades

A number of brokerages recently issued reports on NOW. Oppenheimer reiterated an "outperform" rating and issued a $140.00 target price (up from $130.00) on shares of ServiceNow in a research report on Wednesday, July 15th. Needham & Company LLC restated a "buy" rating and set a $115.00 price target on shares of ServiceNow in a research report on Thursday, July 23rd. Barclays reaffirmed an "overweight" rating and issued a $134.00 price target (up from $132.00) on shares of ServiceNow in a research note on Tuesday, May 5th. Evercore reiterated an "outperform" rating and issued a $160.00 price objective on shares of ServiceNow in a report on Thursday, July 23rd. Finally, Citic Securities lowered their price objective on shares of ServiceNow from $168.00 to $140.00 and set a "buy" rating on the stock in a research note on Thursday, May 21st. One research analyst has rated the stock with a Strong Buy rating, thirty-six have assigned a Buy rating, three have given a Hold rating and two have given a Sell rating to the company. According to MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus target price of $144.24.

Insider Activity at ServiceNow

In related news, Director Paul Edward Chamberlain sold 1,500 shares of the business'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 directly owned 46,690 shares in the company, valued at $5,864,264. The trade was a 3.11% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 0.34% of the stock is owned by insiders.

ServiceNow News Summary

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: ServiceNow expanded its multi-year partnership with Tech Mahindra to help enterprises move AI projects from pilot programs into production. The “Client Zero” approach combines ServiceNow’s AI platform with Tech Mahindra’s industry expertise, potentially increasing adoption, automation revenue and measurable customer outcomes. Tech Mahindra and ServiceNow Expand Partnership to Deliver Production-Ready Enterprise AI at Scale
• Positive Sentiment: Bank of America raised its ServiceNow price target to $150, citing the company’s positioning to monetize artificial intelligence as concerns about AI disruption to traditional software fade. The move contributed to broader bullish sentiment across software stocks. Bank of America Increases ServiceNow Price Target to $150
• Positive Sentiment: ServiceNow has gained substantially since its latest earnings report, which beat estimates on both adjusted earnings and revenue. Quarterly revenue increased 24% year over year, reinforcing the view that the company remains a leading enterprise AI and workflow platform. ServiceNow Up 41.1% Since Last Earnings Report
• Positive Sentiment: ServiceNow was also selected as a CNBC “Final Trade,” providing additional visibility and signaling continued support from some professional investors. Final Trades: ServiceNow, Vertex and Uber
• Neutral Sentiment: Despite the favorable company news, midday AI buying has been concentrated in government-facing companies such as Palantir and BigBear.ai rather than enterprise software, limiting near-term upside for NOW. How Are Traders Picking the Software Winners?
• Negative Sentiment: Investors continue to monitor competitive threats from newer AI-native automation platforms, including Serval, as well as ServiceNow’s premium valuation. Those concerns may encourage profit-taking after the stock’s sharp post-earnings advance. Serval Wants To Replace ServiceNow With AI That Builds Enterprise Automation

ServiceNow Price Performance

NYSE:NOW opened at $128.73 on Friday. The company has a quick ratio of 0.70, a current ratio of 0.70 and a debt-to-equity ratio of 0.43. The business's 50-day moving average price is $108.88 and its 200 day moving average price is $105.74. ServiceNow, Inc. has a 52-week low of $81.24 and a 52-week high of $194.73. The firm has a market cap of $133.11 billion, a P/E ratio of 80.46, a PEG ratio of 2.26 and a beta of 0.94.

ServiceNow (NYSE:NOW - Get Free Report) last issued its quarterly earnings results on Wednesday, July 22nd. The information technology services provider reported $0.90 earnings per share for the quarter, beating analysts' consensus estimates of $0.86 by $0.04. ServiceNow had a net margin of 11.34% and a return on equity of 16.45%. The company had revenue of $3.99 billion during the quarter, compared to the consensus estimate of $3.93 billion. During the same period in the prior year, the company earned $0.81 EPS. ServiceNow's revenue was up 24.0% on a year-over-year basis. As a group, sell-side analysts predict that ServiceNow, Inc. will post 2.24 earnings per share for the current fiscal year.

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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