Bank of America Corp DE Reduces Holdings in ServiceNow, Inc. $NOW

Key Points

• Bank of America reduced its ServiceNow stake by 26.7% in the first quarter, selling 2.58 million shares and retaining 7.08 million shares worth approximately $740.4 million.
• ServiceNow reported strong second-quarter results, with revenue rising 24% year over year to $3.99 billion and adjusted EPS of $0.90, exceeding analysts’ expectations. The company also raised its full-year revenue outlook and highlighted more than $1 billion in AI-related contract value.
• Analyst sentiment remains positive, with a consensus “Moderate Buy” rating and an average price target of $143.39, although insider selling and potential post-acquisition workforce cuts of up to 1,000 positions remain risks.

Bank of America Corp DE lowered its position in shares of ServiceNow, Inc. (NYSE:NOW - Free Report) by 26.7% during the first quarter, according to its most recent Form 13F filing with the SEC. The institutional investor owned 7,081,771 shares of the information technology services provider's stock after selling 2,581,344 shares during the period. Bank of America Corp DE owned about 0.69% of ServiceNow worth $740,399,000 at the end of the most recent reporting period.

Several other institutional investors and hedge funds have also made changes to their positions in the company. Millstone Evans Group LLC boosted 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 acquiring an additional 132 shares during the period. CBIZ Investment Advisory Services LLC increased its holdings in shares of ServiceNow by 540.0% in the 4th quarter. CBIZ Investment Advisory Services LLC now owns 160 shares of the information technology services provider's stock valued at $25,000 after acquiring an additional 135 shares during the period. Blueline Advisors LLC acquired a new position in ServiceNow in the fourth quarter valued at $25,000. Measured Wealth Private Client Group LLC increased its position in 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 valued at $25,000 after acquiring an additional 140 shares during the period. Finally, Wealth Watch Advisors INC raised its stake in shares of ServiceNow by 432.3% during the fourth quarter. Wealth Watch Advisors INC now owns 165 shares of the information technology services provider's stock worth $25,000 after purchasing an additional 134 shares during the last quarter. 87.18% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analysts Forecast Growth

Several brokerages have recently weighed in on NOW. Oppenheimer reaffirmed an "outperform" rating and issued a $140.00 target price (up from $130.00) on shares of ServiceNow in a report on Wednesday, July 15th. Barclays reissued an "overweight" rating and set a $134.00 price target (up from $132.00) on shares of ServiceNow in a report on Tuesday, May 5th. Cantor Fitzgerald raised their price objective on shares of ServiceNow from $122.00 to $141.00 and gave the company an "overweight" rating in a research report on Monday, July 20th. Citizens Jmp reaffirmed a "market outperform" rating and issued a $157.00 price objective on shares of ServiceNow in a report on Tuesday, May 5th. Finally, Guggenheim upgraded ServiceNow from a "neutral" rating to a "buy" rating and set a $125.00 target price on the stock in a research report on Wednesday, July 1st. One analyst has rated the stock with a Strong Buy rating, thirty-six have assigned a Buy rating, two have issued a Hold rating and three have given a Sell rating to the stock. Based on data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and a consensus target price of $143.39.

More ServiceNow News

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: ServiceNow raised its full-year revenue outlook, reinforcing confidence in continued demand for its workflow-automation platform and supporting the recent improvement in the stock. Why Shares of ServiceNow Stock Were Rising This Week
• Positive Sentiment: Second-quarter revenue rose approximately 24% year over year to about $4 billion, while adjusted earnings exceeded expectations. Management also highlighted more than $1 billion in AI-related contract value, suggesting AI agents are adding consumption-based revenue rather than simply reducing software-seat demand. ServiceNow Stock Opinions on Q2 Earnings Results
• Positive Sentiment: Analyst commentary remains constructive, with reported price targets materially above the recent trading level. One bullish analysis raised its fair-value estimate to $160, citing accelerating user retention, strong organic growth, pricing power in AI products and a long-term target of $30 billion to $32 billion in subscription revenue. ServiceNow User Retention Is Accelerating
• Neutral Sentiment: Dynamic Lifecycle Innovations launched an IT asset-disposition application on ServiceNow, adding another example of partners expanding the platform’s use cases. The announcement is strategically supportive but is unlikely to materially change near-term revenue expectations. Dynamic Lifecycle Innovations launches new ServiceNow app
• Negative Sentiment: ServiceNow could eliminate up to 1,000 positions this year as part of a post-acquisition “rightsizing” effort. The cuts may improve efficiency and margins, but reports of continuing layoffs create execution, morale and integration concerns for investors. Exclusive: ServiceNow to cut up to 1K jobs

ServiceNow Price Performance

Shares of NYSE:NOW opened at $111.57 on Friday. The firm has a market capitalization of $115.36 billion, a price-to-earnings ratio of 69.73, a price-to-earnings-growth ratio of 1.94 and a beta of 0.96. The company has a debt-to-equity ratio of 0.43, a current ratio of 0.70 and a quick ratio of 0.70. The business's 50 day simple moving average is $105.64 and its 200-day simple moving average is $106.43. ServiceNow, Inc. has a 12 month low of $81.24 and a 12 month high of $196.40.

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 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 firm had revenue of $3.99 billion during the quarter, compared to the consensus estimate of $3.93 billion. During the same period last year, the firm posted $0.81 EPS. The firm's revenue for the quarter was up 24.0% on a year-over-year basis. As a group, equities analysts forecast that ServiceNow, Inc. will post 2.24 earnings per share for the current fiscal year.

Insider Buying and Selling

In other ServiceNow news, insider Paul Fipps sold 1,048 shares of ServiceNow stock in a transaction that occurred on Monday, May 18th. The shares were sold at an average price of $98.51, for a total value of $103,238.48. Following the completion of the sale, the insider directly owned 12,072 shares of the company's stock, valued at approximately $1,189,212.72. The trade was a 7.99% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible 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 the stock in a transaction dated Thursday, May 14th. The stock was sold at an average price of $90.14, for a total transaction of $1,482,352.30. Following the transaction, the director owned 30,090 shares in the company, valued at approximately $2,712,312.60. The trade was a 35.34% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last 90 days, insiders have sold 19,144 shares of company stock worth $1,730,097. 0.34% of the stock is owned by 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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