Bank of America Corp DE Buys New Position in ServiceNow, Inc. $NOW

Key Points

• Bank of America acquired 6.32 million ServiceNow shares during the second quarter, valued at approximately $627.4 million and representing 0.61% of the company. Institutional investors and hedge funds collectively own 87.18% of ServiceNow.
• Analyst sentiment remains positive, with a consensus rating of “Moderate Buy” and an average price target of $145.71. One analyst rates the stock a Strong Buy, while 36 recommend Buy.
• ServiceNow reported quarterly revenue of $3.99 billion, up 24% year over year, and earnings per share of $0.90, exceeding analyst expectations. However, the stock trades at a high valuation, with a price-to-earnings ratio of 88.78, while insiders sold shares worth about $1.94 million during the quarter.

Bank of America Corp DE bought a new stake in ServiceNow, Inc. (NYSE:NOW - Free Report) in the 2nd quarter, according to its most recent 13F filing with the SEC. The firm bought 6,319,051 shares of the information technology services provider's stock, valued at approximately $627,355,000. Bank of America Corp DE owned 0.61% of ServiceNow at the end of the most recent reporting period.

A number of other hedge funds have also recently made changes to their positions in the business. CBIZ Investment Advisory Services LLC boosted its stake in ServiceNow by 540.0% during the fourth quarter. CBIZ Investment Advisory Services LLC now owns 160 shares of the information technology services provider's stock valued at $25,000 after buying an additional 135 shares during the period. Blueline Advisors LLC purchased a new position in ServiceNow in the 4th quarter worth approximately $25,000. Measured Wealth Private Client Group LLC increased its holdings in shares of ServiceNow by 560.0% in the 4th quarter. Measured Wealth Private Client Group LLC now owns 165 shares of the information technology services provider's stock worth $25,000 after buying an additional 140 shares during the last quarter. Evolution Wealth Management Inc. increased its holdings in shares of ServiceNow by 414.3% in the 4th quarter. Evolution Wealth Management Inc. now owns 180 shares of the information technology services provider's stock worth $28,000 after buying an additional 145 shares during the last quarter. Finally, DT Investment Partners LLC raised its position in shares of ServiceNow by 400.0% during the 4th quarter. DT Investment Partners LLC now owns 195 shares of the information technology services provider's stock valued at $30,000 after buying an additional 156 shares in the last quarter. 87.18% of the stock is currently owned by institutional investors and hedge funds.

Analyst Ratings Changes

A number of research analysts have commented on the stock. BTIG Research increased their price target on shares of ServiceNow from $150.00 to $170.00 and gave the company a "buy" rating in a research report on Tuesday, September 8th. Citic Securities cut their price objective on shares of ServiceNow from $168.00 to $140.00 and set a "buy" rating for the company in a research note on Thursday, May 21st. Royal Bank Of Canada reaffirmed an "outperform" rating and set a $130.00 target price on shares of ServiceNow in a report on Thursday, July 23rd. Benchmark reiterated a "buy" rating on shares of ServiceNow in a research report on Friday, July 17th. Finally, Citigroup reissued a "market outperform" rating on shares of ServiceNow in a research note on Thursday, July 23rd. One research analyst has rated the stock with a Strong Buy rating, thirty-six have given a Buy rating, three have assigned a Hold rating and two have given a Sell rating to the company. According to data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and a consensus target price of $145.71.

ServiceNow Price Performance

NOW stock opened at $142.05 on Wednesday. The firm's 50-day moving average price is $121.59 and its two-hundred day moving average price is $109.52. ServiceNow, Inc. has a 12-month low of $81.24 and a 12-month high of $194.73. The stock has a market capitalization of $146.88 billion, a price-to-earnings ratio of 88.78, a PEG ratio of 2.61 and a beta of 0.97. The company has a current ratio of 0.70, a quick ratio of 0.70 and a debt-to-equity ratio of 0.43.

ServiceNow (NYSE:NOW - Get Free Report) last posted its earnings results on Wednesday, July 22nd. The information technology services provider reported $0.90 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.86 by $0.04. ServiceNow had a return on equity of 16.45% and a net margin of 11.34%.The company had revenue of $3.99 billion for the quarter, compared to analysts' expectations of $3.93 billion. During the same period last year, the firm earned $0.81 earnings per share. ServiceNow's quarterly revenue was up 24.0% on a year-over-year basis. As a group, equities analysts predict that ServiceNow, Inc. will post 2.22 earnings per share for the current year.

Insiders Place Their Bets

In related news, insider Paul Fipps sold 2,034 shares of the company's stock in a transaction on Monday, August 31st. The stock was sold at an average price of $147.87, for a total value of $300,767.58. Following the sale, the insider directly owned 18,305 shares of the company's stock, valued at $2,706,760.35. This represents a 10.00% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, insider Jacqueline P. Canney sold 7,847 shares of the company'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 completion of the sale, the insider directly owned 30,042 shares in the company, valued at $4,145,796. This represents a 20.71% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last quarter, insiders have sold 14,081 shares of company stock worth $1,937,904. Company insiders own 0.34% of the company's stock.

ServiceNow News Roundup

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: ServiceNow introduced its AI Control Tower, Context Engine and Shift Zero products, designed to provide governance, identity controls, workflow security and compliance for enterprise AI agents. The launch strengthens NOW’s positioning as companies seek secure, controlled automation at scale. ServiceNow Debuts AI Control Tower For Enterprise AI Governance
• Positive Sentiment: Investors have shifted from AI hardware toward enterprise software after warnings from AI executives about slowing advanced-model development. A slower pace of AI progress may reduce fears that autonomous agents will quickly replace or weaken traditional software applications, benefiting ServiceNow’s recurring enterprise platform model. ServiceNow Jumps as AI Slowdown Flips the Software Trade
• Positive Sentiment: Several Wall Street firms reportedly raised their price targets for ServiceNow, supporting investor confidence in the company’s growth outlook despite broader market weakness. ServiceNow Shares Rise After Analysts Raise Price Targets
• Positive Sentiment: Adaptiva joined the ServiceNow Build Partner Program, expanding customer access to its endpoint-management integration with ServiceNow’s Configuration Management Database and modestly broadening the platform ecosystem. Adaptiva Joins ServiceNow Build Partner Program
• Neutral Sentiment: ServiceNow executives continue highlighting measurable returns from enterprise AI adoption, but the commentary provides limited new financial guidance. ServiceNow Executive Discusses AI ROI
• Negative Sentiment: One comparison argued that Atlassian may offer a better risk-reward profile because of stronger AI adoption, cloud momentum and a lower valuation. This highlights pressure on NOW, which trades at a premium multiple and must continue delivering strong growth. Atlassian vs. ServiceNow

ServiceNow Company Profile

ServiceNow, Inc is a cloud-based enterprise software company that provides digital workflow and automation solutions. Its Now Platform enables organizations to manage and connect business processes across information technology, customer service, human resources, finance, legal operations and other departments.

The company's products and services include IT service management, IT operations management, customer service management, human resources service delivery, security operations, risk and compliance management, strategic portfolio management and application development tools.

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