B. Metzler seel. Sohn & Co. AG Trims Position in ServiceNow, Inc. $NOW

Key Points

• B. Metzler seel. Sohn & Co. AG cut its ServiceNow stake by 21.7% in the second quarter, selling 25,801 shares and retaining 92,987 shares valued at approximately $9.23 million.
• ServiceNow reported quarterly revenue of $3.99 billion, up 24% year over year, and EPS of $0.90, exceeding analyst expectations. Institutional investors own 87.18% of the company, while insiders sold roughly $1.94 million worth of shares over the past three months.
• Analysts maintain a “Moderate Buy” consensus with an average price target of $144.24, but the stock’s elevated P/E ratio above 85 and reported AI-platform security vulnerability remain notable risks.

B. Metzler seel. Sohn & Co. AG trimmed its position in shares of ServiceNow, Inc. (NYSE:NOW - Free Report) by 21.7% during the 2nd quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm owned 92,987 shares of the information technology services provider's stock after selling 25,801 shares during the period. B. Metzler seel. Sohn & Co. AG's holdings in ServiceNow were worth $9,232,000 at the end of the most recent reporting period.

A number of other large investors also recently modified their holdings of the company. Norges Bank purchased a new stake in ServiceNow in the fourth quarter worth $2,020,992,000. World Investment Advisors boosted its stake in shares of ServiceNow by 411.7% during the fourth quarter. World Investment Advisors now owns 47,955 shares of the information technology services provider's stock valued at $7,346,000 after purchasing an additional 38,583 shares during the period. Moors & Cabot Inc. boosted its stake in shares of ServiceNow by 387.7% during the fourth quarter. Moors & Cabot Inc. now owns 45,630 shares of the information technology services provider's stock valued at $6,990,000 after purchasing an additional 36,274 shares during the period. Bank of Nova Scotia grew its holdings in shares of ServiceNow by 53.3% in the first quarter. Bank of Nova Scotia now owns 1,018,036 shares of the information technology services provider's stock worth $106,436,000 after purchasing an additional 353,749 shares during the last quarter. Finally, Huntington National Bank grew its holdings in shares of ServiceNow by 397.1% in the fourth quarter. Huntington National Bank now owns 544,257 shares of the information technology services provider's stock worth $83,375,000 after purchasing an additional 434,761 shares during the last quarter. Hedge funds and other institutional investors own 87.18% of the company's stock.

Insider Buying and Selling

In related news, insider Jacqueline P. Canney sold 7,847 shares of the firm's stock in a transaction dated Friday, August 28th. The stock was 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 $4,145,796. This trade represents a 20.71% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Paul Fipps sold 2,034 shares of ServiceNow stock in a transaction dated 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 in the company, valued at $2,706,760.35. This trade represents a 10.00% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold 14,081 shares of company stock worth $1,937,904 in the last three months. 0.34% of the stock is owned by insiders.

Key Stories Impacting ServiceNow

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: ServiceNow and Aramco Digital signed a collaboration agreement to expand AI-powered enterprise transformation. The partnership could broaden adoption of ServiceNow’s AI workflow tools across Aramco’s operations and strengthen the company’s competitive position versus Salesforce and Microsoft. ServiceNow and Aramco Digital Collaboration Agreement
• Positive Sentiment: Pricefx launched a Deal Optimization App for the ServiceNow AI Platform, embedding pricing guidance, negotiation insights and product recommendations into enterprise sales workflows. The announcement supports the view that partners are using ServiceNow as an AI distribution layer, potentially increasing platform usage and ecosystem revenue. ServiceNow as an Enterprise AI Commerce Platform
• Neutral Sentiment: Analysts remain moderately optimistic despite ServiceNow’s weaker performance than some software peers. However, with a reported price-to-earnings ratio above 85, investors may require continued strong growth and successful monetization of AI initiatives to justify the valuation. ServiceNow Performance Compared With Software Peers
• Negative Sentiment: Researchers reported that attackers may be able to break out of a sandbox in the ServiceNow AI Platform. A vulnerability involving AI tools could raise concerns about customer data, enterprise security, remediation costs and reputational risk, making this the most direct company-specific pressure on the stock. ServiceNow AI Platform Sandbox Security Report
• Negative Sentiment: Multiple insiders recently sold shares, including Paul Fipps, Jacqueline Canney and Director Paul Edward Chamberlain. Some transactions were made under pre-arranged trading plans, reducing their bearish significance, but the cluster of sales may still weigh on investor sentiment. ServiceNow Insider Selling Report

ServiceNow Price Performance

Shares of NOW opened at $136.57 on Thursday. The company has a debt-to-equity ratio of 0.43, a quick ratio of 0.70 and a current ratio of 0.70. The company has a 50 day moving average price of $115.22 and a 200-day moving average price of $107.44. ServiceNow, Inc. has a fifty-two week low of $81.24 and a fifty-two week high of $194.73. The stock has a market capitalization of $141.22 billion, a PE ratio of 85.36, a PEG ratio of 2.60 and a beta of 0.97.

ServiceNow (NYSE:NOW - Get Free Report) last issued its quarterly earnings data on Wednesday, July 22nd. The information technology services provider reported $0.90 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.86 by $0.04. ServiceNow had a net margin of 11.34% and a return on equity of 16.45%. The company had revenue of $3.99 billion for the quarter, compared to analyst estimates of $3.93 billion. During the same period last year, the company posted $0.81 earnings per share. ServiceNow's revenue was up 24.0% compared to the same quarter last year. Equities analysts predict that ServiceNow, Inc. will post 2.24 earnings per share for the current fiscal year.

Wall Street Analysts Forecast Growth

A number of equities research analysts recently weighed in on NOW shares. UBS Group set a $248.00 price objective on shares of ServiceNow in a report on Thursday, July 23rd. Wells Fargo & Company reaffirmed an "overweight" rating and set a $175.00 price target (up from $160.00) on shares of ServiceNow in a research note on Wednesday, August 12th. Needham & Company LLC reissued a "buy" rating and issued a $115.00 price objective on shares of ServiceNow in a research note on Thursday, July 23rd. CLSA started coverage on ServiceNow in a research note on Monday, July 20th. They issued an "underperform" rating and a $72.00 price objective on the stock. Finally, Morgan Stanley set a $180.00 price objective on ServiceNow in a report on Tuesday, July 21st. One equities research analyst has rated the stock with a Strong Buy rating, thirty-six have assigned a Buy rating, three have assigned a Hold rating and two have assigned a Sell rating to the company's stock. Based on data from MarketBeat.com, ServiceNow currently has an average rating of "Moderate Buy" and an average price target of $144.24.

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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