Alight Capital Management LP Buys 19,000 Shares of ServiceNow, Inc. $NOW

Key Points

• Alight Capital Management LP increased its ServiceNow stake by 316.7% in the fourth quarter, buying 19,000 additional shares to bring its total holdings to 25,000 shares worth about $3.83 million.
• Institutional ownership in ServiceNow remains heavy, with 87.18% of the stock held by hedge funds and other institutional investors. Several other funds also recently added to or started positions in the company.
• Analysts are still broadly positive on ServiceNow, with a Moderate Buy consensus and an average price target of $142.17, even as insider sales and a recent stock pullback keep sentiment mixed.

Alight Capital Management LP increased its holdings in ServiceNow, Inc. (NYSE:NOW - Free Report) by 316.7% in the fourth quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The firm owned 25,000 shares of the information technology services provider's stock after acquiring an additional 19,000 shares during the quarter. Alight Capital Management LP's holdings in ServiceNow were worth $3,830,000 as of its most recent SEC filing.

Other hedge funds also recently added to or reduced their stakes in the company. IAG Wealth Partners LLC boosted its holdings in shares of ServiceNow by 200.0% in the 3rd quarter. IAG Wealth Partners LLC now owns 27 shares of the information technology services provider's stock valued at $25,000 after buying an additional 18 shares in the last quarter. Wealth Watch Advisors INC purchased a new position in shares of ServiceNow in the 3rd quarter valued at approximately $29,000. Texas Capital Bancshares Inc TX purchased a new position in ServiceNow during the 3rd quarter worth approximately $37,000. Ameriflex Group Inc. raised its position in ServiceNow by 187.5% during the 3rd quarter. Ameriflex Group Inc. now owns 46 shares of the information technology services provider's stock worth $42,000 after buying an additional 30 shares during the last quarter. Finally, Kelleher Financial Advisors purchased a new position in ServiceNow during the 3rd quarter worth approximately $50,000. 87.18% of the stock is owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

A number of equities research analysts have recently commented on the stock. BNP Paribas Exane raised shares of ServiceNow from a "neutral" rating to an "outperform" rating and set a $140.00 price objective on the stock in a research note on Monday, March 16th. Citic Securities lowered their target price 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. Sanford C. Bernstein reissued an "outperform" rating and set a $236.00 price target (up from $226.00) on shares of ServiceNow in a research report on Wednesday, May 6th. Cantor Fitzgerald set a $130.00 price target on shares of ServiceNow in a research report on Monday. Finally, BTIG Research restated a "buy" rating and issued a $150.00 price objective on shares of ServiceNow in a report on Monday, May 4th. One analyst has rated the stock with a Strong Buy rating, thirty-five have issued a Buy rating, five have assigned a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and a consensus price target of $142.17.

Insiders Place Their Bets

In other ServiceNow news, insider Paul Fipps sold 1,048 shares of the stock in a transaction on Monday, May 18th. The stock was sold at an average price of $98.51, for a total value of $103,238.48. Following the completion of the transaction, the insider owned 12,072 shares in the company, valued at approximately $1,189,212.72. This represents a 7.99% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Director Paul Edward Chamberlain sold 1,500 shares of the firm's stock in a transaction on Thursday, May 14th. The shares were sold at an average price of $87.23, for a total value of $130,845.00. Following the completion of the transaction, the director owned 44,930 shares of the company's stock, valued at approximately $3,919,243.90. This represents a 3.23% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders have sold 28,071 shares of company stock worth $2,529,956. 0.34% of the stock is owned by insiders.

ServiceNow Stock Performance

Shares of NOW opened at $95.20 on Thursday. The stock has a 50 day moving average price of $99.69 and a 200 day moving average price of $118.44. The company has a quick ratio of 0.84, a current ratio of 0.84 and a debt-to-equity ratio of 0.13. The company has a market capitalization of $98.15 billion, a price-to-earnings ratio of 56.73, a price-to-earnings-growth ratio of 1.67 and a beta of 0.94. ServiceNow, Inc. has a 52-week low of $81.24 and a 52-week high of $211.48.

ServiceNow (NYSE:NOW - Get Free Report) last posted its quarterly earnings data on Wednesday, April 22nd. The information technology services provider reported $0.97 earnings per share for the quarter, meeting the consensus estimate of $0.97. The business had revenue of $3.77 billion during the quarter, compared to the consensus estimate of $3.75 billion. ServiceNow had a return on equity of 18.16% and a net margin of 12.59%.The company's revenue was up 22.1% compared to the same quarter last year. During the same period in the prior year, the company earned $0.81 earnings per share. Research analysts predict that ServiceNow, Inc. will post 2.35 EPS for the current fiscal year.

ServiceNow News Roundup

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: The Hackett Group joined the ServiceNow Partner Program to help enterprises speed up ROI-driven AI transformation using Hackett AI XPLR and the ServiceNow AI Platform, which could support future platform adoption and consulting-driven growth. The Hackett Group® Partners with ServiceNow to Help Enterprises Accelerate ROI-based AI Transformation
• Positive Sentiment: ServiceNow’s expanded partnership with Wipro to deploy agentic AI workflows at scale suggests continued momentum in enterprise AI adoption, which investors may view as a driver of longer-term revenue growth. ServiceNow (NOW): A Wipro Partnership to Close the Gap Between AI Pilots and Full Enterprise Deployment
• Positive Sentiment: A recent collaboration with Cognizant on AI governance also reinforces ServiceNow’s positioning as an enterprise AI workflow and compliance platform, a theme that has supported the stock’s recent recovery attempts. ServiceNow Inc (NOW) Teams Up With Cognizant on AI Governance
• Neutral Sentiment: Commentary from an investor letter noted that ServiceNow has benefited from growing adoption of AI-native solutions, but this is more of a broader thesis update than a new catalyst. ServiceNow (NOW) Slid Amid Growing Adoption of AI-Native Solutions
• Negative Sentiment: A report claiming a ServiceNow security breach exposed enterprise customer data could weigh on investor confidence if the issue proves credible, since trust and security are key to the company’s enterprise software business. ServiceNow Security Breach Exposes Enterprise Customer Data

ServiceNow Company Profile

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.

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