Associated Banc Corp Boosts Position in ServiceNow, Inc. $NOW

Key Points

• Associated Banc Corp increased its stake in ServiceNow by 10.5% in the first quarter, adding 41,818 shares and bringing its total holding to 441,028 shares valued at about $46.1 million.
• ServiceNow reported solid quarterly results, with EPS of $0.97 matching estimates and revenue of $3.77 billion, up 22.1% year over year.
• Analyst sentiment remains constructive, with multiple firms reiterating buy/outperform ratings and MarketBeat showing a consensus target price of $141.47, even as some price targets were lowered.

Associated Banc Corp lifted its position in shares of ServiceNow, Inc. (NYSE:NOW - Free Report) by 10.5% in the first quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The fund owned 441,028 shares of the information technology services provider's stock after buying an additional 41,818 shares during the period. ServiceNow makes up approximately 1.2% of Associated Banc Corp's portfolio, making the stock its 15th largest position. Associated Banc Corp's holdings in ServiceNow were worth $46,109,000 at the end of the most recent quarter.

Other hedge funds also recently added to or reduced their stakes in the company. Vanguard Group Inc. boosted its position in shares of ServiceNow by 404.5% during the 4th quarter. Vanguard Group Inc. now owns 101,963,384 shares of the information technology services provider's stock worth $15,619,771,000 after acquiring an additional 81,752,460 shares in the last quarter. State Street Corp increased its stake in ServiceNow by 406.6% in 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 during the last quarter. Price T Rowe Associates Inc. MD raised its holdings in ServiceNow by 371.0% during 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 in the last quarter. Geode Capital Management LLC grew its position in shares of ServiceNow by 404.8% in the 4th quarter. Geode Capital Management LLC now owns 23,512,428 shares of the information technology services provider's stock valued at $3,591,425,000 after buying an additional 18,854,775 shares during the last quarter. Finally, Morgan Stanley boosted its stake in ServiceNow by 335.6% in the fourth quarter. Morgan Stanley now owns 22,733,483 shares of the information technology services provider's stock valued at $3,482,543,000 after acquiring an additional 17,514,679 shares in the last quarter. 87.18% of the stock is currently owned by hedge funds and other institutional investors.

Insider Activity at ServiceNow

In other news, insider Jacqueline P. Canney sold 8,927 shares of the firm's stock in a transaction on Friday, April 24th. The stock was sold at an average price of $89.60, for a total transaction of $799,859.20. Following the completion of the sale, the insider directly owned 29,531 shares of the company's stock, valued at $2,645,977.60. This trade represents a 23.21% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Also, insider Paul Fipps sold 1,048 shares of the company's stock in a transaction dated Monday, May 18th. The shares were sold at an average price of $98.51, for a total transaction of $103,238.48. Following the sale, the insider directly owned 12,072 shares of the company's stock, valued at $1,189,212.72. This represents a 7.99% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. 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. Insiders have sold a total of 28,071 shares of company stock valued at $2,529,956 over the last quarter. Corporate insiders own 0.34% of the company's stock.

ServiceNow Stock Down 0.9%

NOW stock traded down $1.03 during trading on Friday, reaching $107.81. The stock had a trading volume of 11,058,890 shares, compared to its average volume of 20,996,616. The company has a market capitalization of $111.16 billion, a P/E ratio of 64.25, a PEG ratio of 1.79 and a beta of 0.96. ServiceNow, Inc. has a 1-year low of $81.24 and a 1-year high of $210.20. The company has a current ratio of 0.84, a quick ratio of 0.84 and a debt-to-equity ratio of 0.13. The firm has a fifty day moving average price of $102.49 and a 200 day moving average price of $111.27.

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 (EPS) for the quarter, hitting the consensus estimate of $0.97. The company had revenue of $3.77 billion for 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%.ServiceNow's revenue for the quarter was up 22.1% compared to the same quarter last year. During the same period in the previous year, the business earned $0.81 EPS. On average, equities analysts anticipate that ServiceNow, Inc. will post 2.34 earnings per share for the current year.

Analyst Ratings Changes

A number of analysts have commented on the company. UBS Group reiterated an "outperform" rating on shares of ServiceNow in a research report on Tuesday, May 26th. Jefferies Financial Group reaffirmed a "buy" rating and issued a $135.00 price target (down from $175.00) on shares of ServiceNow in a report on Thursday, April 23rd. Needham & Company LLC restated a "buy" rating and set a $115.00 price objective on shares of ServiceNow in a research report on Tuesday, May 5th. Deutsche Bank Aktiengesellschaft lowered their target price on ServiceNow from $180.00 to $135.00 and set a "buy" rating on the stock in a report on Thursday, April 16th. Finally, TD Cowen restated a "buy" rating and issued a $140.00 price objective on shares of ServiceNow in a research report on Thursday, April 23rd. One investment analyst has rated the stock with a Strong Buy rating, thirty-six have given a Buy rating, four have assigned a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and a consensus target price of $141.47.

Key Stories Impacting ServiceNow

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: ServiceNow rallied after reports that a large international electronics company is teaming up with the company on a new AI-powered product that will be available on ServiceNow’s platform, reinforcing its role in enterprise AI. Why ServiceNow Stock Crushed it on Thursday
• Positive Sentiment: Truist Financial raised its price target on ServiceNow from $120 to $130 and kept a buy rating, signaling continued analyst confidence in the company’s growth prospects. Benzinga report on Truist price target increase
• Positive Sentiment: Investor sentiment around software improved as AI spending expectations shifted in favor of application software, helping ServiceNow participate in the broader rotation toward software names. Chip Stocks Drop 12% as Software Rebounds in AI Trade Shift
• Neutral Sentiment: Several market updates described ServiceNow as consolidating or trading flat while investors digested the AI partnership news and a more constructive analyst tone, suggesting a pause after the recent move rather than a fresh fundamental shift. ServiceNow Stock Consolidates as Accenture Launches Agentic AI Offerings
• Negative Sentiment: Friday trading saw ServiceNow slip as investors appeared to take profits and reassess whether the recent AI enthusiasm has already been priced in. ServiceNow Stock Falls Friday: What's Going On?

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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