Baker Avenue Asset Management LP Increases Stake in ServiceNow, Inc. $NOW

Key Points

• Baker Avenue Asset Management boosted its ServiceNow stake by 411.5% in the fourth quarter, ending with 15,356 shares valued at about $2.35 million.
• ServiceNow reported Q1 earnings of $0.97 per share, matching estimates, while revenue came in at $3.77 billion, slightly above forecasts and up 22.1% from a year earlier.
• The stock rose 6.3% and drew mixed signals from insiders and analysts: several insiders sold shares, but analysts still mostly rate the stock a Moderate Buy with an average price target of $141.85.

Baker Avenue Asset Management LP increased its stake in shares of ServiceNow, Inc. (NYSE:NOW - Free Report) by 411.5% in the fourth quarter, according to the company in its most recent Form 13F filing with the SEC. The fund owned 15,356 shares of the information technology services provider's stock after acquiring an additional 12,354 shares during the quarter. Baker Avenue Asset Management LP's holdings in ServiceNow were worth $2,352,000 at the end of the most recent quarter.

Other hedge funds and other institutional investors also recently added to or reduced their stakes in the company. IAG Wealth Partners LLC raised its holdings in shares of ServiceNow by 200.0% during the 3rd quarter. IAG Wealth Partners LLC now owns 27 shares of the information technology services provider's stock worth $25,000 after acquiring an additional 18 shares in the last quarter. Noble Wealth Management PBC grew its holdings in shares of ServiceNow by 400.0% in the fourth quarter. Noble Wealth Management PBC now owns 160 shares of the information technology services provider's stock valued at $25,000 after purchasing an additional 128 shares in the last quarter. Millstone Evans Group LLC grew its holdings in shares of ServiceNow by 400.0% in the fourth quarter. Millstone Evans Group LLC now owns 165 shares of the information technology services provider's stock valued at $25,000 after purchasing an additional 132 shares in the last quarter. CBIZ Investment Advisory Services LLC increased its position in ServiceNow by 540.0% in the fourth quarter. CBIZ Investment Advisory Services LLC now owns 160 shares of the information technology services provider's stock worth $25,000 after purchasing an additional 135 shares during the last quarter. Finally, Lodestone Wealth Management LLC bought a new stake in ServiceNow in the fourth quarter worth $26,000. 87.18% of the stock is owned by institutional investors.

ServiceNow Stock Up 6.3%

NYSE:NOW opened at $108.58 on Friday. The company's 50-day simple moving average is $97.84 and its 200-day simple moving average is $123.73. The company has a debt-to-equity ratio of 0.13, a quick ratio of 0.84 and a current ratio of 0.84. ServiceNow, Inc. has a fifty-two week low of $81.24 and a fifty-two week high of $211.48. The stock has a market capitalization of $111.95 billion, a P/E ratio of 64.71, a P/E/G ratio of 1.69 and a beta of 0.82.

ServiceNow (NYSE:NOW - Get Free Report) last posted its earnings results on Wednesday, April 22nd. The information technology services provider reported $0.97 EPS for the quarter, hitting the consensus estimate of $0.97. The firm had revenue of $3.77 billion for the quarter, compared to analyst estimates 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 last year, the company earned $0.81 earnings per share. On average, equities analysts anticipate that ServiceNow, Inc. will post 2.35 earnings per share for the current fiscal year.

Insider Buying and Selling

In other news, insider Paul Fipps sold 1,048 shares of the business's stock in a transaction that occurred on Monday, May 18th. The stock was sold at an average price of $98.51, for a total transaction of $103,238.48. Following the transaction, the insider directly owned 12,072 shares in the company, valued at $1,189,212.72. The trade was a 7.99% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at 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 Paul Edward Chamberlain sold 1,500 shares of ServiceNow stock in a transaction that occurred on Thursday, May 14th. The stock was sold at an average price of $87.23, for a total value of $130,845.00. Following the transaction, the director owned 44,930 shares in the company, valued at approximately $3,919,243.90. The trade was a 3.23% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last quarter, insiders have sold 28,071 shares of company stock valued at $2,529,956. 0.34% of the stock is currently owned by company insiders.

Trending Headlines about ServiceNow

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: ServiceNow extended gains as investors viewed the stock as deeply undervalued versus GuruFocus’s GF Value estimate, reinforcing bullish sentiment around the name. A Look at ServiceNow Inc (NOW) After 6.5% Gain -- GF Value $225.42 vs Price $108.73
• Positive Sentiment: Wipro announced a deeper partnership with ServiceNow to automate enterprise workflows and embed agentic AI capabilities, which could support longer-term platform adoption and AI revenue opportunities. Wipro and ServiceNow deepen AI partnership to automate enterprise workflows
• Positive Sentiment: Analyst commentary highlighted ServiceNow’s Q1 results as a sign of resilience, with revenue growth around 22% and earnings meeting expectations, while institutional buying and elevated analyst targets continue to support the stock. ServiceNow (NOW) Stock Analysis: Evaluating the Investment Opportunity
• Neutral Sentiment: Unusually heavy call-option activity suggests traders are positioning for further upside, but it may also reflect short-term speculation rather than fundamental conviction.
• Neutral Sentiment: Several articles focused on ServiceNow’s presentation at a software and AI conference and on broader automation-software comparisons, which appear more informational than immediately market-moving.
• Negative Sentiment: Some coverage flagged rising AI competition and questioned whether ServiceNow can sustain growth, a reminder that investors are still watching how effectively the company defends its AI and enterprise software positioning. Can ServiceNow Sustain Its Growth Amid Rising AI Competition?

Analyst Upgrades and Downgrades

A number of equities analysts have commented on the stock. Wall Street Zen cut shares of ServiceNow from a "buy" rating to a "hold" rating in a research note on Saturday, February 28th. Citic Securities dropped their price objective on ServiceNow from $168.00 to $140.00 and set a "buy" rating for the company in a report on Thursday, May 21st. Barclays reiterated an "overweight" rating and set a $134.00 price objective (up from $132.00) on shares of ServiceNow in a report on Tuesday, May 5th. Mizuho dropped their target price on shares of ServiceNow from $150.00 to $140.00 and set an "outperform" rating on the stock in a research note on Thursday, April 23rd. Finally, Cantor Fitzgerald reduced their target price on shares of ServiceNow to $122.00 and set an "overweight" rating on the stock in a research report on Thursday, April 23rd. Two research analysts have rated the stock with a Strong Buy rating, thirty-five have issued a Buy rating, five have assigned a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, the company has a consensus rating of "Moderate Buy" and an average target price of $141.85.

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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