Alkeon Capital Management LLC Buys New Position in ServiceNow, Inc. $NOW

Key Points

• Alkeon Capital Management opened a new position in ServiceNow during the fourth quarter, buying 60,170 shares worth about $9.2 million.
• Institutional ownership in ServiceNow remains very high, with 87.18% of shares held by hedge funds and other institutions. Several other funds also added to their stakes significantly in the period.
• ServiceNow reported strong quarterly results, posting $0.97 EPS on revenue of $3.77 billion, with revenue up 22.1% year over year. Analysts currently rate the stock a Moderate Buy with an average price target of $142.17.

Alkeon Capital Management LLC bought a new stake in shares of ServiceNow, Inc. (NYSE:NOW - Free Report) in the fourth quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The firm bought 60,170 shares of the information technology services provider's stock, valued at approximately $9,217,000.

A number of other hedge funds and other institutional investors also recently bought and sold shares of the company. Alberta Investment Management Corp purchased a new position in ServiceNow during the 4th quarter valued at about $26,579,000. University of Texas Texas AM Investment Management Co. purchased a new position in ServiceNow during the 4th quarter valued at about $68,000. Oarsman Capital Inc. boosted its holdings in ServiceNow by 468.9% during the 4th quarter. Oarsman Capital Inc. now owns 3,362 shares of the information technology services provider's stock valued at $515,000 after acquiring an additional 2,771 shares during the period. OMERS ADMINISTRATION Corp boosted its holdings in ServiceNow by 732.6% during the 4th quarter. OMERS ADMINISTRATION Corp now owns 878,235 shares of the information technology services provider's stock valued at $134,537,000 after acquiring an additional 772,759 shares during the period. Finally, Sienna Gestion boosted its holdings in ServiceNow by 400.0% during the 4th quarter. Sienna Gestion now owns 38,250 shares of the information technology services provider's stock valued at $5,870,000 after acquiring an additional 30,600 shares during the period. 87.18% of the stock is currently owned by hedge funds and other institutional investors.

ServiceNow Price Performance

NOW stock opened at $104.26 on Tuesday. The company has a debt-to-equity ratio of 0.13, a current ratio of 0.84 and a quick ratio of 0.84. The firm has a market capitalization of $107.50 billion, a P/E ratio of 62.14, a P/E/G ratio of 1.69 and a beta of 0.94. The business's 50-day moving average is $99.85 and its two-hundred day moving average is $119.31. ServiceNow, Inc. has a 1 year low of $81.24 and a 1 year high of $211.48.

ServiceNow (NYSE:NOW - Get Free Report) last issued its earnings results on Wednesday, April 22nd. The information technology services provider reported $0.97 earnings per share for the quarter, hitting the consensus estimate of $0.97. ServiceNow had a return on equity of 18.16% and a net margin of 12.59%.The business had revenue of $3.77 billion for the quarter, compared to analyst estimates of $3.75 billion. During the same quarter last year, the company earned $0.81 EPS. The business's quarterly revenue was up 22.1% on a year-over-year basis. Analysts anticipate that ServiceNow, Inc. will post 2.35 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other news, insider Paul Fipps sold 1,048 shares of the firm's stock in a transaction dated Monday, May 18th. The stock was sold at an average price of $98.51, for a total transaction of $103,238.48. Following the sale, the insider owned 12,072 shares of the company's stock, valued at approximately $1,189,212.72. This trade represents a 7.99% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. 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 dated Thursday, May 14th. The stock was sold at an average price of $87.23, for a total value of $130,845.00. Following the sale, the director directly owned 44,930 shares in the company, valued at $3,919,243.90. This trade represents a 3.23% 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 sold a total of 28,071 shares of company stock worth $2,529,956 over the last 90 days. Insiders own 0.34% of the company's stock.

Wall Street Analyst Weigh In

NOW has been the subject of a number of research analyst reports. Sanford C. Bernstein restated an "outperform" rating and set a $236.00 target price (up from $226.00) on shares of ServiceNow in a report on Wednesday, May 6th. Bank of America initiated coverage on ServiceNow in a report on Monday, May 18th. They set a "buy" rating and a $130.00 target price for the company. Jefferies Financial Group restated a "buy" rating and set a $135.00 target price (down from $175.00) on shares of ServiceNow in a report on Thursday, April 23rd. Citizens Jmp reaffirmed a "market outperform" rating and issued a $157.00 price target on shares of ServiceNow in a research report on Tuesday, May 5th. Finally, Wall Street Zen lowered ServiceNow from a "buy" rating to a "hold" rating in a research report on Saturday, February 28th. One analyst has rated the stock with a Strong Buy rating, thirty-five have assigned a Buy rating, five have issued a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and an average price target of $142.17.

More ServiceNow News

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: Benchmark raised its price target on ServiceNow to $130 from $125 and kept a Buy rating, signaling confidence that the stock has meaningful upside from current levels.
• Positive Sentiment: Another report noted ServiceNow has an average analyst recommendation of Moderate Buy, reinforcing a broadly constructive Wall Street view of the company.
• Positive Sentiment: IBM’s expanded ServiceNow partnership was highlighted as a way to accelerate enterprise AI adoption, which could bolster ServiceNow’s platform relevance and long-term growth narrative. Can IBM's Extended ServiceNow Deal Accelerate Enterprise AI Adoption?
• Neutral Sentiment: ServiceNow was described as a candidate to benefit from AI-driven workflow automation, but the commentary was more of a business thesis than a concrete catalyst. ServiceNow: A 7.0 Score in a Shifting AI Landscape
• Neutral Sentiment: ServiceNow outperformed the broader market in the latest session, but the move appeared tied to general momentum and analyst sentiment rather than a major company-specific announcement. ServiceNow (NOW) Beats Stock Market Upswing: What Investors Need to Know
• Negative Sentiment: Multiple articles compared ServiceNow with Salesforce and said CRM currently has the edge thanks to stronger Agentforce momentum, rising earnings estimates, and a lower valuation, which may pressure NOW’s relative appeal. ServiceNow vs. Salesforce: Which Cloud Software Stock Has an Edge Now?
• Negative Sentiment: A broader software-industry note said SaaS stocks have been under pressure over the past six months, a backdrop that can weigh on ServiceNow’s valuation even when company-specific news is positive. 1 Software Stock with Exciting Potential and 2 Facing Headwinds

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.

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