AIA Group Ltd Makes New Investment in ServiceNow, Inc. $NOW

Key Points

• AIA Group opened a new ServiceNow position, buying 11,018 shares worth approximately $1.48 million in the third quarter. Institutional investors and hedge funds collectively own 87.18% of the stock.
• Analyst sentiment is broadly positive: ServiceNow has a consensus “Moderate Buy” rating and a $154.50 price target, although BTIG lowered its target to $150.
• In its latest quarter, ServiceNow’s revenue rose 20.5% year over year to $4.11 billion, beating estimates, while earnings per share of $1.00 narrowly missed consensus. Investors have also raised concerns about backlog growth and rising costs.

AIA Group Ltd purchased a new position in shares of ServiceNow, Inc. (NYSE:NOW - Free Report) in the third quarter, according to its most recent disclosure with the Securities and Exchange Commission. The institutional investor purchased 11,018 shares of the information technology services provider's stock, valued at approximately $1,477,000.

Several other large investors have also recently added to or reduced their stakes in NOW. A. D. Beadell Investment Counsel Inc. grew its stake in shares of ServiceNow by 2.9% in the second quarter. A. D. Beadell Investment Counsel Inc. now owns 2,818 shares of the information technology services provider's stock valued at $279,000 after buying an additional 80 shares in the last quarter. DUTCH ASSET Corp grew its position in ServiceNow by 0.5% in the third quarter. DUTCH ASSET Corp now owns 16,331 shares of the information technology services provider's stock valued at $2,189,000 after acquiring an additional 82 shares in the last quarter. Atwood & Palmer Inc. grew its position in ServiceNow by 20.0% in the second quarter. Atwood & Palmer Inc. now owns 600 shares of the information technology services provider's stock valued at $60,000 after acquiring an additional 100 shares in the last quarter. Diligent Investors LLC grew its position in ServiceNow by 4.1% in the third quarter. Diligent Investors LLC now owns 2,560 shares of the information technology services provider's stock valued at $343,000 after acquiring an additional 100 shares in the last quarter. Finally, Signature Wealth Management Partners LLC raised its stake in shares of ServiceNow by 3.3% during the third quarter. Signature Wealth Management Partners LLC now owns 3,281 shares of the information technology services provider's stock valued at $440,000 after purchasing an additional 106 shares during the period. 87.18% of the stock is currently owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In

A number of research firms have recently commented on NOW. Evercore reissued an "outperform" rating on shares of ServiceNow in a research report on Tuesday, October 13th. Stifel Nicolaus set a $160.00 price target on shares of ServiceNow and gave the company a "buy" rating in a report on Tuesday, October 6th. Argus reaffirmed a "buy" rating and set a $170.00 price target on shares of ServiceNow in a research note on Tuesday. BTIG Research cut their price objective on shares of ServiceNow from $170.00 to $150.00 and set a "buy" rating on the stock in a report on Thursday, October 29th. Finally, Morgan Stanley reiterated an "overweight" rating and issued a $160.00 price objective on shares of ServiceNow in a report on Thursday, October 29th. One equities research analyst has rated the stock with a Strong Buy rating, thirty-six have issued a Buy rating, three have assigned a Hold rating and three have given a Sell rating to the company. Based on data from MarketBeat.com, ServiceNow has a consensus rating of "Moderate Buy" and a consensus price target of $154.50.

Insider Buying and Selling

In other ServiceNow news, insider Paul Fipps sold 2,034 shares of ServiceNow stock in a transaction on Monday, August 31st. The shares were sold at an average price of $147.87, for a total value of $300,767.58. Following the completion of the transaction, the insider owned 18,305 shares of the company's stock, valued at $2,706,760.35. The trade was a 10.00% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this link. Also, insider Jacqueline Canney sold 7,847 shares of the business's stock in a transaction on Friday, August 28th. The shares were sold at an average price of $138.00, for a total transaction of $1,082,886.00. Following the sale, the insider owned 30,042 shares of the company's stock, valued at approximately $4,145,796. The trade was a 20.71% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 14,081 shares of company stock worth $1,937,904 over the last ninety days. 0.34% of the stock is owned by insiders.

Key Headlines Impacting ServiceNow

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: ServiceNow and LTM plan to expand their partnership, combining ServiceNow’s AI Platform with LTM’s consulting and engineering capabilities to scale agentic AI projects and joint sales efforts. The collaboration could support broader enterprise adoption, though the announcement did not quantify expected revenue. Article: LTM and ServiceNow expand partnership
• Positive Sentiment: The NBA extended its partnership with ServiceNow and will use EmployeeWorks for employee onboarding and workplace requests, adding a prominent customer deployment. Article: NBA and ServiceNow extend partnership
• Positive Sentiment: Argus assigned ServiceNow a Buy rating, offering a supportive analyst view amid the recent weakness. Article: ServiceNow earns Buy rating from Argus
• Neutral Sentiment: A customer announcement said KORE will deploy 3CLogic’s voice AI platform alongside ServiceNow Customer Service Management. This illustrates use of ServiceNow in an AI-enabled customer-service solution, but the announcement centers on 3CLogic and does not detail financial impact for ServiceNow. Article: KORE selects 3CLogic platform
• Negative Sentiment: Investors are focused on risks raised in the Q3 earnings call: despite ServiceNow lifting its AI contract-value target to $1.7 billion as adoption accelerates, slower backlog growth and revenue adjustments prompted questions about the outlook. Article: ServiceNow Q3 earnings call highlights
• Negative Sentiment: A separate analysis warned that costs are rising faster than AI adoption, adding to concerns about profitability. Broader investor worries that AI could disrupt established software companies have also weighed on sentiment toward ServiceNow. Article: ServiceNow AI adoption and rising costs

ServiceNow Trading Down 6.0%

NYSE:NOW opened at $102.24 on Friday. The company has a market cap of $106.13 billion, a PE ratio of 59.46, a P/E/G ratio of 2.13 and a beta of 1.00. The business's 50 day moving average is $137.04 and its two-hundred day moving average is $114.92. The company has a quick ratio of 0.72, a current ratio of 0.72 and a debt-to-equity ratio of 0.42. ServiceNow, Inc. has a 52 week low of $81.24 and a 52 week high of $175.80.

ServiceNow (NYSE:NOW - Get Free Report) last issued its quarterly earnings results on Wednesday, October 28th. The information technology services provider reported $1.00 earnings per share for the quarter, missing analysts' consensus estimates of $1.02 by ($0.02). The firm had revenue of $4.11 billion during the quarter, compared to the consensus estimate of $4.09 billion. ServiceNow had a net margin of 9.36% and a return on equity of 15.17%. ServiceNow's revenue was up 20.5% compared to the same quarter last year. During the same quarter last year, the firm posted $4.82 earnings per share. On average, analysts predict that ServiceNow, Inc. will post 2.12 EPS for the current year.

ServiceNow Company Profile

ServiceNow, Inc provides cloud-based software designed to help organizations digitize, automate and manage enterprise workflows. Its Now Platform connects people, processes and systems across departments, enabling customers to manage work through a centralized technology environment.

The company's products and services address a range of business needs, including information technology service management, IT operations management, customer service management, human resources service delivery, security operations, risk and compliance, and application development.

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