AXQ Capital LP Acquires 10,626 Shares of ServiceNow, Inc. $NOW

Key Points

• AXQ Capital LP sharply increased its ServiceNow stake in the fourth quarter, buying 10,626 additional shares and lifting its holdings by 1,531.1% to 11,320 shares worth about $1.73 million.
• ServiceNow stock was up 9.1% and traded at $135.70, helped by positive sentiment around the software sector and AI-related optimism. The company also has a large institutional base, with institutions owning 87.18% of shares.
• The company’s latest earnings were solid, with EPS of $0.97 matching estimates and revenue of $3.77 billion beating forecasts, while revenue rose 22.1% year over year. Analyst sentiment remains constructive, with a consensus rating of Moderate Buy and an average target price of $141.85.

AXQ Capital LP lifted its holdings in shares of ServiceNow, Inc. (NYSE:NOW - Free Report) by 1,531.1% during the 4th quarter, according to its most recent disclosure with the SEC. The fund owned 11,320 shares of the information technology services provider's stock after purchasing an additional 10,626 shares during the period. AXQ Capital LP's holdings in ServiceNow were worth $1,734,000 at the end of the most recent reporting period.

Several other large investors also recently made changes to their positions in the business. Meridian Wealth Advisors LLC grew its holdings in shares of ServiceNow by 2.2% during the third quarter. Meridian Wealth Advisors LLC now owns 552 shares of the information technology services provider's stock worth $508,000 after purchasing an additional 12 shares during the last quarter. Valley Brook Capital Group Inc. boosted its holdings in ServiceNow by 2.1% in the third quarter. Valley Brook Capital Group Inc. now owns 634 shares of the information technology services provider's stock valued at $583,000 after acquiring an additional 13 shares during the last quarter. Catalyst Financial Partners LLC boosted its holdings in ServiceNow by 1.0% in the third quarter. Catalyst Financial Partners LLC now owns 1,270 shares of the information technology services provider's stock valued at $1,169,000 after acquiring an additional 13 shares during the last quarter. JT Stratford LLC boosted its holdings in ServiceNow by 3.5% in the third quarter. JT Stratford LLC now owns 385 shares of the information technology services provider's stock valued at $354,000 after acquiring an additional 13 shares during the last quarter. Finally, Abbot Financial Management Inc. boosted its holdings in ServiceNow by 2.9% in the third quarter. Abbot Financial Management Inc. now owns 502 shares of the information technology services provider's stock valued at $462,000 after acquiring an additional 14 shares during the last quarter. Institutional investors own 87.18% of the company's stock.

ServiceNow Trading Up 9.1%

NYSE NOW opened at $135.70 on Tuesday. The firm has a market cap of $139.91 billion, a P/E ratio of 80.87, a P/E/G ratio of 2.05 and a beta of 0.94. 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 stock's 50-day moving average is $98.50 and its 200-day moving average is $123.13. ServiceNow, Inc. has a one year low of $81.24 and a one year high of $211.48.

ServiceNow (NYSE:NOW - Get Free Report) last announced its earnings results on Wednesday, April 22nd. The information technology services provider reported $0.97 earnings per share (EPS) for the quarter, meeting analysts' consensus estimates 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 firm earned $0.81 EPS. ServiceNow's revenue for the quarter was up 22.1% compared to the same quarter last year. Sell-side analysts anticipate that ServiceNow, Inc. will post 2.36 earnings per share for the current fiscal year.

Key ServiceNow News

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: ServiceNow is benefiting from a broad software rally after Nvidia’s Jensen Huang said AI should be seen as an opportunity for software firms rather than a threat. ServiceNow, Adobe stocks jump as Nvidia's new AI chip sparks software rally
• Positive Sentiment: Investors are also reacting to ServiceNow’s recent quarterly results, which beat revenue estimates and showed continued double-digit growth, supporting the view that fundamentals remain strong. ServiceNow (NOW) shares skyrocket, what you need to know
• Positive Sentiment: Coverage points to ServiceNow as a leader in the software comeback, with investors betting the sector may have more room to rebound as AI demand grows. ServiceNow Is Leading a Software Comeback for These Stocks
• Neutral Sentiment: Commentary around “agentic AI” and ServiceNow’s role in enterprise automation is adding to bullish sentiment, but it is more narrative-driven than a new hard catalyst. What Exactly Is Agentic AI, and Why Are Some Stocks Blowing Up Because of It? (NOW)
• Neutral Sentiment: Analyst and media coverage continues to highlight ServiceNow as a stock with upside potential, reinforcing the positive tone but not adding a new company-specific announcement. ServiceNow Stock: Is NOW Underperforming the Technology Sector?

Analyst Ratings Changes

A number of brokerages have issued reports on NOW. DA Davidson reaffirmed a "buy" rating and issued a $190.00 price objective on shares of ServiceNow in a research note on Tuesday, May 5th. Raymond James Financial lowered their target price on shares of ServiceNow from $160.00 to $130.00 and set an "outperform" rating for the company in a report on Thursday, April 23rd. Stifel Nicolaus lowered their target price on shares of ServiceNow from $135.00 to $120.00 and set a "buy" rating for the company in a report on Thursday, April 23rd. Mizuho lowered their target price on shares of ServiceNow from $150.00 to $140.00 and set an "outperform" rating for the company in a report on Thursday, April 23rd. Finally, BNP Paribas Exane raised shares of ServiceNow from a "neutral" rating to an "outperform" rating and set a $140.00 target price for the company in a report on Monday, March 16th. Two equities research analysts have rated the stock with a Strong Buy rating, thirty-five have given a Buy rating, five have given a Hold rating and one has assigned a Sell rating to the company's stock. According to MarketBeat.com, the company currently has an average rating of "Moderate Buy" and an average target price of $141.85.

Insider Transactions at ServiceNow

In related news, insider Paul Fipps sold 1,048 shares of ServiceNow stock in a transaction that occurred 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 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 filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. 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 Anita M. Sands sold 16,445 shares of ServiceNow stock in a transaction that occurred on Thursday, May 14th. The shares were sold at an average price of $90.14, for a total value of $1,482,352.30. Following the completion of the sale, the director directly owned 30,090 shares in the company, valued at approximately $2,712,312.60. This represents a 35.34% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 28,071 shares of company stock worth $2,529,956 in the last 90 days. 0.34% of the stock is owned by corporate insiders.

ServiceNow 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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