Callahan Advisors LLC Buys 15,542 Shares of ServiceNow, Inc. $NOW

Key Points

• Callahan Advisors LLC increased its ServiceNow stake by 398.5% in the fourth quarter, buying 15,542 additional shares and bringing its total holdings to 19,442 shares worth about $2.98 million.
• ServiceNow shares were recently up 1.3%, with the stock opening at $103.13. The company’s market cap stands at $106.33 billion, and its shares have traded between $81.24 and $211.48 over the past year.
• The company’s latest earnings matched expectations, reporting $0.97 EPS on $3.77 billion in revenue, up 22.1% year over year. Analysts remain generally bullish, with a consensus rating of Moderate Buy and an average price target of $141.89.

Callahan Advisors LLC boosted its stake in shares of ServiceNow, Inc. (NYSE:NOW - Free Report) by 398.5% in the fourth quarter, according to its most recent disclosure with the Securities & Exchange Commission. The firm owned 19,442 shares of the information technology services provider's stock after purchasing an additional 15,542 shares during the quarter. Callahan Advisors LLC's holdings in ServiceNow were worth $2,978,000 at the end of the most recent quarter.

Other large investors have also recently added to or reduced their stakes in the company. IAG Wealth Partners LLC boosted its position in ServiceNow by 200.0% during 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 period. Wealth Watch Advisors INC acquired a new stake in shares of ServiceNow in the third quarter worth $29,000. Texas Capital Bancshares Inc TX acquired a new stake in shares of ServiceNow in the third quarter worth $37,000. Ameriflex Group Inc. grew its stake in shares of ServiceNow by 187.5% in the third quarter. Ameriflex Group Inc. now owns 46 shares of the information technology services provider's stock worth $42,000 after acquiring an additional 30 shares during the last quarter. Finally, Kelleher Financial Advisors acquired a new stake in shares of ServiceNow in the third quarter worth $50,000. Institutional investors own 87.18% of the company's stock.

ServiceNow Stock Up 1.3%

Shares of NOW stock opened at $103.13 on Thursday. The stock has a market cap of $106.33 billion, a P/E ratio of 61.46, a price-to-earnings-growth ratio of 1.85 and a beta of 0.82. ServiceNow, Inc. has a one year low of $81.24 and a one year high of $211.48. The stock has a fifty day moving average price of $99.35 and a 200 day moving average price of $126.89. 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 (NYSE:NOW - Get Free Report) last released its quarterly earnings data on Wednesday, April 22nd. The information technology services provider reported $0.97 earnings per share (EPS) for the quarter, hitting the consensus estimate of $0.97. ServiceNow had a return on equity of 18.16% and a net margin of 12.59%.The firm had revenue of $3.77 billion during the quarter, compared to analyst estimates of $3.75 billion. During the same period in the prior year, the company posted $0.81 earnings per share. The business's revenue for the quarter was up 22.1% compared to the same quarter last year. Analysts predict that ServiceNow, Inc. will post 2.35 earnings per share for the current year.

ServiceNow News Roundup

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: Bank of America restarted coverage on ServiceNow with a Buy rating and a $130 target, calling it an AI winner in the emerging agentic AI era. BofA Reinstates Coverage of ServiceNow, Salesforce. It Says 1 Is an AI Beneficiary.
• Positive Sentiment: Several articles said Wall Street is warming to ServiceNow because its workflow software could serve as a control layer for AI agents, easing fears that AI will replace its business. Wall Street Is Warming Up to ServiceNow Stock. That’s Because It’s Now a Bet on Agentic AI.
• Positive Sentiment: Analysts and commentators highlighted that the recent selloff may have been overdone, with ServiceNow’s valuation looking more attractive after a sharp yearlong decline. Assessing ServiceNow (NOW) Valuation After A Year Of Sharp Share Price Declines
• Positive Sentiment: Media and analyst pieces also framed the stock’s rebound as part of a broader rotation back into software names, with ServiceNow singled out as one of the sector leaders. ServiceNow and Snowflake Stocks Trade Up, What You Need To Know
• Neutral Sentiment: Some reports noted that the stock has fallen sharply over the past year despite revenue and profit growth, so investors are still weighing strong fundamentals against a still-extended valuation. After a 50% Drop, Is ServiceNow Stock Worth Buying?
• Negative Sentiment: There are still lingering concerns that AI disruption could pressure traditional enterprise software, and some commentary warned the recent bounce could fade if those fears return. ServiceNow stock flashes a death cross amid rising SaaSpocalypse concerns

Insider Buying and Selling

In other ServiceNow news, Director Paul Edward Chamberlain sold 1,500 shares of the stock in a transaction on Thursday, May 14th. The stock was sold at an average price of $87.23, for a total transaction of $130,845.00. Following the completion of the transaction, the director directly owned 44,930 shares in the company, valued at $3,919,243.90. This represents a 3.23% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Jacqueline P. Canney sold 8,927 shares of the stock in a transaction on Friday, April 24th. The stock was sold at an average price of $89.60, for a total value of $799,859.20. Following the transaction, 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 ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last three months, insiders have sold 31,767 shares of company stock valued at $2,906,098. 0.34% of the stock is owned by insiders.

Analysts Set New Price Targets

Several brokerages have recently issued reports on NOW. Jefferies Financial Group restated a "buy" rating and issued a $135.00 price objective (down from $175.00) on shares of ServiceNow in a research note on Thursday, April 23rd. Robert W. Baird lowered their price objective 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. Capital One Financial raised their price objective on shares of ServiceNow from $105.00 to $120.00 and gave the stock an "overweight" rating in a research note on Tuesday, May 5th. Barclays restated an "overweight" rating and issued a $134.00 price objective (up from $132.00) on shares of ServiceNow in a research note on Tuesday, May 5th. Finally, DA Davidson restated a "buy" rating and issued a $190.00 price objective on shares of ServiceNow in a research note on Tuesday, May 5th. Two research analysts have rated the stock with a Strong Buy rating, thirty-three have given a Buy rating, six have given a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, ServiceNow currently has an average rating of "Moderate Buy" and an average price target of $141.89.

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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