BlackRock Inc. Invests $9.54 Billion in ServiceNow, Inc. $NOW

Key Points

• BlackRock acquired 96.1 million ServiceNow shares worth approximately $9.54 billion, representing about 9.29% of the company. Institutional investors collectively own 87.18% of ServiceNow.
• ServiceNow reported quarterly revenue of $3.99 billion, up 24% year over year, and adjusted earnings of $0.90 per share, exceeding analyst expectations. Analysts maintain a broadly positive outlook, with a consensus “Moderate Buy” rating and an average price target of $143.76.
• Growth prospects are balanced by valuation and execution risks. The planned $7.75 billion Armis acquisition could strengthen ServiceNow’s cybersecurity and AI offerings, but the stock remains expensive and faces software-sector weakness, integration risks and mixed institutional positioning.

BlackRock Inc. acquired a new position in shares of ServiceNow, Inc. (NYSE:NOW - Free Report) in the 2nd quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The institutional investor acquired 96,057,763 shares of the information technology services provider's stock, valued at approximately $9,536,615,000. BlackRock Inc. owned about 9.29% of ServiceNow as of its most recent SEC filing.

Other hedge funds and other institutional investors have also recently bought and sold shares of the company. Wealth Watch Advisors INC bought a new stake in shares of ServiceNow during the 3rd quarter valued at approximately $29,000. Kelleher Financial Advisors bought a new position in ServiceNow in the 3rd quarter valued at approximately $50,000. Pin Oak Investment Advisors Inc. lifted its stake in ServiceNow by 20.7% in the 3rd quarter. Pin Oak Investment Advisors Inc. now owns 134 shares of the information technology services provider's stock valued at $123,000 after purchasing an additional 23 shares during the last quarter. Jupiter Wealth Management LLC acquired a new stake in ServiceNow in the second quarter valued at approximately $154,000. Finally, CBIZ Investment Advisory Services LLC grew its stake in shares of 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 worth $25,000 after buying an additional 135 shares during the last quarter. Institutional investors own 87.18% of the company's stock.

ServiceNow News Roundup

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: Cybersecurity expansion supports long-term growth. ServiceNow’s planned $7.75 billion acquisition of Armis would broaden its AI-powered security platform and strengthen its preventive cyber-defense offerings. The appointment of former Armis executive Simon Mouyal as chief marketing officer also signals an increased focus on security and go-to-market execution. ServiceNow Is Spending $7.75 Billion On AI Security
• Positive Sentiment: Analyst support remains firm. TD Cowen reaffirmed its Buy rating and assigned a $140 price target, implying meaningful upside from the referenced market level. Analysts cited ServiceNow’s expanding security platform, AI workflow opportunities and recurring-revenue model. ServiceNow Earns Buy Rating
• Positive Sentiment: Fundamentals and AI momentum continue to attract dip buyers. Recent commentary points to roughly 24% year-over-year revenue growth and a substantial rebound from the stock’s lows. Some investors view support near the 200-day moving average as an opportunity if the company’s growth remains intact. NOW Stock Has Rebounded Over 54%
• Neutral Sentiment: Institutional positioning is mixed. JPMorgan added a large position, while T. Rowe Price, Wellington Management and several other firms reduced holdings. The split suggests continued disagreement about valuation and the pace of the recovery.
• Neutral Sentiment: A director sold shares under a pre-arranged Rule 10b5-1 plan. Paul Edward Chamberlain sold 1,500 shares worth approximately $188,400, reducing his holdings by 3.11%. Because the transaction was scheduled in advance, it provides limited evidence of a change in the company’s outlook. SEC Insider Filing
• Negative Sentiment: Valuation remains a major concern. Even after a reported 30.5% decline over the past year, commentary argues that ServiceNow still does not look inexpensive, leaving the stock vulnerable to further pressure if growth expectations soften. ServiceNow Stock Still Looks Expensive
• Negative Sentiment: Broad software-sector weakness is weighing on the shares. Investors have been rotating toward semiconductor and AI-hardware stocks, pressuring software names including ServiceNow, Adobe and Intuit. The sizable Armis acquisition also introduces execution, integration and spending risks.

ServiceNow Stock Down 5.1%

Shares of NOW opened at $117.70 on Tuesday. The stock's 50-day moving average price is $107.15 and its two-hundred day moving average price is $105.49. ServiceNow, Inc. has a 12 month low of $81.24 and a 12 month high of $194.73. The company has a market capitalization of $121.70 billion, a PE ratio of 73.56, a PEG ratio of 2.18 and a beta of 0.94. 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 issued its quarterly 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. The company had revenue of $3.99 billion during the quarter, compared to analysts' expectations of $3.93 billion. ServiceNow had a return on equity of 16.45% and a net margin of 11.34%.The business's quarterly revenue was up 24.0% on a year-over-year basis. During the same quarter in the prior year, the firm posted $0.81 earnings per share. On average, analysts anticipate that ServiceNow, Inc. will post 2.24 EPS for the current year.

Insider Buying and Selling

In other ServiceNow news, Director Paul Edward Chamberlain sold 1,500 shares of the stock in a transaction that occurred on Thursday, August 13th. The shares were sold at an average price of $125.60, for a total transaction of $188,400.00. Following the completion of the sale, the director owned 46,690 shares of the company's stock, valued at approximately $5,864,264. This represents a 3.11% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 0.34% of the stock is owned by insiders.

Analysts Set New Price Targets

A number of brokerages have recently commented on NOW. Citigroup reiterated a "market outperform" rating on shares of ServiceNow in a research note on Thursday, July 23rd. 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. Argus dropped their target price on ServiceNow from $180.00 to $134.00 and set a "buy" rating for the company in a research report on Friday, April 24th. Jefferies Financial Group reissued a "buy" rating and set a $140.00 price target (up from $135.00) on shares of ServiceNow in a research note on Thursday, July 23rd. Finally, BMO Capital Markets boosted their price target on ServiceNow from $115.00 to $118.00 and gave the stock an "outperform" rating in a report on Thursday, July 23rd. One analyst has rated the stock with a Strong Buy rating, thirty-six have given a Buy rating, two have assigned a Hold rating and three have assigned a Sell rating to the company's stock. According to MarketBeat, the company currently has an average rating of "Moderate Buy" and a consensus target price of $143.76.

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.

Want to see what other hedge funds are holding NOW? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for ServiceNow, Inc. (NYSE:NOW - Free Report).

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source