Bessemer Group Inc. Raises Position in ServiceNow, Inc. $NOW

Key Points

• Bessemer Group Inc. sharply increased its ServiceNow stake by 248.3% in the fourth quarter, ending with 1,798,162 shares worth about $275.5 million. Institutional ownership in ServiceNow remains high, with hedge funds and other investors holding 87.18% of the stock.
• ServiceNow continues to lean into AI and enterprise automation, highlighted by an expanded Boomi partnership, a FedEx procurement integration, and a new engineering program with Accenture to scale agentic AI for customers.
• The stock recently rose 4% but remains well below its 52-week high, while analysts are mixed-to-positive overall with a consensus Moderate Buy rating and a $144.71 price target. The company also reported quarterly EPS in line with expectations and revenue slightly above estimates, with sales up 22.1% year over year.

Bessemer Group Inc. boosted its stake in ServiceNow, Inc. (NYSE:NOW - Free Report) by 248.3% during the fourth quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The institutional investor owned 1,798,162 shares of the information technology services provider's stock after buying an additional 1,281,915 shares during the quarter. Bessemer Group Inc. owned approximately 0.17% of ServiceNow worth $275,460,000 at the end of the most recent reporting period.

A number of other hedge funds and other institutional investors have also recently bought and sold shares of NOW. Brighton Jones LLC lifted its stake in ServiceNow by 1.1% in the 4th quarter. Brighton Jones LLC now owns 2,753 shares of the information technology services provider's stock valued at $2,919,000 after buying an additional 30 shares in the last quarter. Sivia Capital Partners LLC lifted its stake in ServiceNow by 4.2% in the 2nd quarter. Sivia Capital Partners LLC now owns 837 shares of the information technology services provider's stock valued at $861,000 after buying an additional 34 shares in the last quarter. United Bank lifted its stake in ServiceNow by 15.5% in the 2nd quarter. United Bank now owns 1,519 shares of the information technology services provider's stock valued at $1,562,000 after buying an additional 204 shares in the last quarter. Riggs Asset Managment Co. Inc. lifted its stake in ServiceNow by 2.2% in the 2nd quarter. Riggs Asset Managment Co. Inc. now owns 1,922 shares of the information technology services provider's stock valued at $1,976,000 after buying an additional 42 shares in the last quarter. Finally, Nebula Research & Development LLC lifted its stake in ServiceNow by 205.1% in the 2nd quarter. Nebula Research & Development LLC now owns 906 shares of the information technology services provider's stock valued at $931,000 after buying an additional 609 shares in the last quarter. 87.18% of the stock is owned by hedge funds and other institutional investors.

ServiceNow News Roundup

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: ServiceNow expanded its partnership with Boomi to improve real-time data activation across enterprise systems, strengthening its positioning as a platform for agentic AI and workflow automation. ServiceNow and Boomi partner for data activation
• Positive Sentiment: FedEx is deepening its ServiceNow relationship with a procurement integration, a sign that major enterprise customers are broadening use of the platform and could drive more recurring revenue. FedEx advances ServiceNow partnership with procurement integration
• Positive Sentiment: ServiceNow and Accenture launched an engineering program to scale agentic AI for enterprise clients, which supports the company’s AI growth narrative and suggests more commercialization of its platform. ServiceNow (NOW), Accenture Launch Engineering Program to Scale Agentic AI for Enterprises
• Positive Sentiment: Several articles highlighted ServiceNow as an attractive AI/software name, with commentary suggesting the recent sell-off may be overdone and that investors are focusing on the stock’s long-term AI upside. 1 Incredible Artificial Intelligence (AI) Stock to Buy After Its Post-Earnings Sell-Off
• Neutral Sentiment: Analyst and media coverage remains mixed but generally constructive, with pieces debating whether the market is underestimating the impact of AI on ServiceNow’s business. ServiceNow: The Market Is Misunderstanding The Effects Of AI
• Negative Sentiment: A bearish options trade and commentary about further downside show that some traders still expect weakness, reflecting lingering pressure on the stock after its post-earnings decline. See ServiceNow Stock Heading Lower? This Trade Profits From Further Downside.
• Negative Sentiment: An insider sale by Paul Fipps was disclosed, which can add to short-term caution even though it was small and made under a pre-arranged trading plan. SEC insider filing for Paul Fipps

Analyst Upgrades and Downgrades

A number of research firms have weighed in on NOW. KeyCorp set a $85.00 target price on shares of ServiceNow and gave the stock an "underweight" rating in a research note on Thursday, April 23rd. Needham & Company LLC reissued a "buy" rating and issued a $115.00 target price on shares of ServiceNow in a research note on Tuesday, May 5th. Robert W. Baird decreased their target price on shares of ServiceNow from $125.00 to $118.00 and set an "outperform" rating on the stock in a research note on Thursday, April 23rd. Evercore raised their target price on shares of ServiceNow from $140.00 to $150.00 and gave the stock an "outperform" rating in a research note on Tuesday, May 5th. Finally, Cantor Fitzgerald decreased their target price on shares of ServiceNow to $122.00 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-three have issued a Buy rating, six have assigned a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, ServiceNow has an average rating of "Moderate Buy" and a consensus price target of $144.71.

ServiceNow Stock Up 4.0%

Shares of NYSE NOW opened at $90.56 on Friday. The company has a 50 day simple moving average of $100.89 and a 200-day simple moving average of $129.31. The company has a market capitalization of $93.37 billion, a P/E ratio of 53.97, a P/E/G ratio of 1.54 and a beta of 0.82. The company has a debt-to-equity ratio of 0.13, a current ratio of 0.84 and a quick ratio of 0.84. 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 quarterly earnings results on Wednesday, April 22nd. The information technology services provider reported $0.97 earnings per share (EPS) for the quarter, hitting analysts' consensus estimates of $0.97. The business had revenue of $3.77 billion during the quarter, compared to the consensus estimate of $3.75 billion. ServiceNow had a net margin of 12.59% and a return on equity of 18.16%. The business's revenue was up 22.1% compared to the same quarter last year. During the same quarter last year, the firm earned $0.81 EPS. On average, equities research analysts predict that ServiceNow, Inc. will post 2.35 earnings per share for the current year.

Insider Buying and Selling

In other news, insider Paul Fipps sold 3,696 shares of the firm's stock in a transaction that occurred on Monday, February 23rd. The shares were sold at an average price of $101.77, for a total transaction of $376,141.92. Following the completion of the sale, the insider owned 8,061 shares in the company, valued at $820,367.97. This trade represents a 31.44% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, insider Jacqueline P. Canney sold 8,927 shares of the firm's stock in a transaction that occurred on Friday, April 24th. The stock was sold at an average price of $89.60, for a total transaction of $799,859.20. Following the sale, the insider owned 29,531 shares of the company's stock, valued at $2,645,977.60. This represents a 23.21% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 22,415 shares of company stock valued at $2,210,933 in the last 90 days. Insiders own 0.34% of the company's stock.

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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