Bank of New York Mellon Corp Acquires 6,435,140 Shares of ServiceNow, Inc. $NOW

Key Points

• Bank of New York Mellon dramatically increased its stake in ServiceNow, buying 6.44 million additional shares in the fourth quarter and lifting its holdings to 8.01 million shares, or about 0.77% of the company.
• ServiceNow reported Q4 results in line with expectations, posting $0.97 EPS and $3.77 billion in revenue, with revenue up 22.1% year over year.
• Despite recent analyst target cuts, Wall Street still has a Moderate Buy consensus on ServiceNow, with an average price target of $141.85. Shares also continue to trade amid mixed sentiment around AI-driven software stocks and valuation concerns.

Bank of New York Mellon Corp grew its holdings in ServiceNow, Inc. (NYSE:NOW - Free Report) by 409.0% in the fourth quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The institutional investor owned 8,008,668 shares of the information technology services provider's stock after purchasing an additional 6,435,140 shares during the period. Bank of New York Mellon Corp owned about 0.77% of ServiceNow worth $1,226,848,000 as of its most recent SEC filing.

A number of other hedge funds and other institutional investors have also recently modified their holdings of the business. IAG Wealth Partners LLC boosted its position in ServiceNow by 200.0% in the third quarter. IAG Wealth Partners LLC now owns 27 shares of the information technology services provider's stock worth $25,000 after purchasing an additional 18 shares during the last quarter. Noble Wealth Management PBC raised its position in ServiceNow by 400.0% in the fourth quarter. Noble Wealth Management PBC now owns 160 shares of the information technology services provider's stock worth $25,000 after acquiring an additional 128 shares during the period. Millstone Evans Group LLC boosted its stake in shares of ServiceNow by 400.0% during the 4th quarter. Millstone Evans Group LLC now owns 165 shares of the information technology services provider's stock worth $25,000 after acquiring an additional 132 shares during the last quarter. CBIZ Investment Advisory Services LLC boosted its stake in shares of ServiceNow by 540.0% during the 4th quarter. CBIZ Investment Advisory Services LLC now owns 160 shares of the information technology services provider's stock worth $25,000 after acquiring an additional 135 shares during the last quarter. Finally, Blueline Advisors LLC bought a new stake in shares of ServiceNow during the 4th quarter valued at $25,000. 87.18% of the stock is owned by institutional investors.

ServiceNow Stock Performance

NYSE NOW opened at $127.59 on Wednesday. The stock has a market capitalization of $131.55 billion, a PE ratio of 76.04, a P/E/G ratio of 2.24 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 business has a 50 day simple moving average of $98.50 and a two-hundred day simple moving average of $123.13. ServiceNow, Inc. has a 1-year low of $81.24 and a 1-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 EPS for the quarter, hitting analysts' consensus estimates of $0.97. The firm had revenue of $3.77 billion during the quarter, compared to analysts' expectations of $3.75 billion. ServiceNow had a return on equity of 18.16% and a net margin of 12.59%.The company's quarterly revenue was up 22.1% on a year-over-year basis. During the same quarter in the previous year, the business earned $0.81 EPS. On average, research analysts predict that ServiceNow, Inc. will post 2.35 EPS for the current fiscal year.

Analysts Set New Price Targets

A number of equities analysts recently commented on the company. Robert W. Baird decreased their target price on ServiceNow from $125.00 to $118.00 and set an "outperform" rating on the stock in a report on Thursday, April 23rd. Wolfe Research set a $125.00 target price on shares of ServiceNow in a research note on Thursday, April 23rd. Citizens Jmp reiterated a "market outperform" rating and issued a $157.00 price target on shares of ServiceNow in a research report on Tuesday, May 5th. Argus decreased their price objective on shares of ServiceNow from $180.00 to $134.00 and set a "buy" rating on the stock in a research report on Friday, April 24th. Finally, Wells Fargo & Company lowered their target price on shares of ServiceNow from $185.00 to $160.00 and set an "overweight" rating on the stock in a research note on Thursday, April 23rd. Two analysts have rated the stock with a Strong Buy rating, thirty-five have assigned a Buy rating, five have assigned a Hold rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat.com, ServiceNow presently has an average rating of "Moderate Buy" and a consensus target price of $141.85.

ServiceNow News Roundup

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: ServiceNow has been viewed as a leader in the AI-driven software rebound, with recent articles highlighting strong business momentum and investor enthusiasm for its role in agentic AI and enterprise automation. Article Title
• Positive Sentiment: The stock benefited from a broader Monday software rally after Nvidia’s CEO eased fears that AI will disrupt software companies, helping lift sentiment toward names like ServiceNow. Article Title
• Positive Sentiment: ServiceNow was also cited as a beneficiary of the new AI-chip-led rotation into software stocks, which briefly pushed the sector higher and supported bullish momentum in NOW shares. Article Title
• Neutral Sentiment: Recent commentary continues to compare ServiceNow with peers such as Salesforce and Intuit, suggesting investors are still weighing its valuation against its growth profile rather than reacting to a single company-specific event. Article Title
• Negative Sentiment: ServiceNow fell in the latest session as the software rally lost momentum, with investors pulling back from high-multiple tech stocks after a strong run-up. Article Title
• Negative Sentiment: Some recent analysis is turning more cautious on ServiceNow’s valuation, arguing the stock may be less attractive after its sharp AI-driven move higher. Article Title

Insider Activity at ServiceNow

In other news, insider Jacqueline P. Canney sold 8,927 shares of the company's stock in a transaction dated Friday, April 24th. The shares were sold at an average price of $89.60, for a total value of $799,859.20. Following the transaction, the insider directly owned 29,531 shares in the company, valued at approximately $2,645,977.60. This represents a 23.21% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, insider Paul Fipps sold 1,048 shares of ServiceNow stock in a transaction dated Monday, May 18th. The shares were sold at an average price of $98.51, for a total transaction of $103,238.48. Following the sale, the insider owned 12,072 shares of the company's stock, valued at $1,189,212.72. The trade was a 7.99% 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. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold a total of 28,071 shares of company stock valued at $2,529,956 over the last ninety days. Company insiders own 0.34% of the company's stock.

ServiceNow Company 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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