Cannell & Spears LLC Sells 49,047 Shares of ServiceNow, Inc. $NOW

Key Points

• Cannell & Spears LLC reduced its ServiceNow stake by 36.7% in the first quarter, selling 49,047 shares and leaving it with 84,713 shares worth about $8.88 million.
• ServiceNow posted strong Q2 results, with revenue up 24% year over year and EPS of $0.90 versus $0.86 expected, while management also raised guidance.
• Analysts remain generally bullish despite some mixed signals: the stock has a Moderate Buy consensus rating with an average price target of $143.39, even as a few funds and insiders trimmed holdings.

Cannell & Spears LLC cut its stake in shares of ServiceNow, Inc. (NYSE:NOW - Free Report) by 36.7% in the first quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The firm owned 84,713 shares of the information technology services provider's stock after selling 49,047 shares during the quarter. Cannell & Spears LLC's holdings in ServiceNow were worth $8,876,000 at the end of the most recent reporting period.

Other hedge funds and other institutional investors also recently added to or reduced their stakes in the company. Vanguard Group Inc. boosted its position in shares of ServiceNow by 404.5% in the fourth quarter. Vanguard Group Inc. now owns 101,963,384 shares of the information technology services provider's stock worth $15,619,771,000 after purchasing an additional 81,752,460 shares during the period. State Street Corp raised its position in shares of ServiceNow by 406.6% during the 4th quarter. State Street Corp now owns 47,896,597 shares of the information technology services provider's stock valued at $7,337,280,000 after purchasing an additional 38,441,898 shares during the period. Price T Rowe Associates Inc. MD lifted its stake in shares of ServiceNow by 371.0% during the 4th quarter. Price T Rowe Associates Inc. MD now owns 32,395,663 shares of the information technology services provider's stock valued at $4,962,692,000 after buying an additional 25,517,218 shares in the last quarter. Geode Capital Management LLC lifted its stake in shares of ServiceNow by 404.8% during the 4th quarter. Geode Capital Management LLC now owns 23,512,428 shares of the information technology services provider's stock valued at $3,591,425,000 after buying an additional 18,854,775 shares in the last quarter. Finally, Morgan Stanley boosted its holdings in ServiceNow by 335.6% in the 4th quarter. Morgan Stanley now owns 22,733,483 shares of the information technology services provider's stock worth $3,482,543,000 after buying an additional 17,514,679 shares during the period. 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’s Q2 results showed robust growth, with revenue up about 24% year over year and subscription revenue accelerating, reinforcing that demand for its platform remains strong. Article Title
• Positive Sentiment: Management raised guidance and highlighted AI momentum, including AI contract value topping $1 billion and expanding enterprise adoption, which supports the case for continued growth. Article Title
• Positive Sentiment: Several analysts raised or reaffirmed bullish ratings and price targets after earnings, reflecting renewed confidence in ServiceNow’s outlook and valuation upside. Article Title
• Positive Sentiment: New partnerships and channel expansions, including deals with Experian, TeamViewer, and Exclusive Networks, suggest broader adoption of ServiceNow’s AI and cybersecurity offerings. Article Title
• Neutral Sentiment: Investors are also watching mixed signals from insider and institutional trading, with some large funds trimming positions even as others add shares; this appears more like portfolio rebalancing than a clear fundamental warning. Article Title
• Negative Sentiment: Despite the earnings beat, some commentary says the stock’s rally may be vulnerable if AI disruption fears return, especially around usage-based pricing and long-term software demand. Article Title

Insider Activity

In other news, Director Paul Edward Chamberlain sold 1,500 shares of the stock in a transaction that occurred 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 approximately $3,919,243.90. This represents a 3.23% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Anita M. Sands sold 16,445 shares of the business's stock in a transaction on 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 completion of the sale, the director owned 30,090 shares in the company, valued at $2,712,312.60. This represents a 35.34% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last ninety days, insiders sold 19,144 shares of company stock worth $1,730,097. 0.34% of the stock is currently owned by insiders.

ServiceNow Price Performance

NYSE:NOW opened at $98.77 on Friday. The company has a current ratio of 0.70, a quick ratio of 0.84 and a debt-to-equity ratio of 0.43. The company has a market capitalization of $101.83 billion, a P/E ratio of 61.73, a P/E/G ratio of 1.54 and a beta of 0.96. ServiceNow, Inc. has a 12 month low of $81.24 and a 12 month high of $201.15. The business's 50-day moving average is $104.77 and its 200 day moving average is $107.70.

ServiceNow (NYSE:NOW - Get Free Report) last released 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. ServiceNow had a return on equity of 16.45% and a net margin of 11.34%.The business had revenue of $3.99 billion during the quarter, compared to analysts' expectations of $3.93 billion. During the same quarter last year, the business posted $0.81 EPS. The firm's revenue for the quarter was up 24.0% compared to the same quarter last year. On average, equities research analysts forecast that ServiceNow, Inc. will post 2.33 earnings per share for the current fiscal year.

Analyst Ratings Changes

A number of equities research analysts have commented on NOW shares. CLSA started coverage on ServiceNow in a report on Monday. They set an "underperform" rating and a $72.00 price target on the stock. Truist Financial increased their target price on ServiceNow from $120.00 to $130.00 and gave the stock a "buy" rating in a research report on Thursday, July 9th. Jefferies Financial Group reissued a "buy" rating and set a $140.00 target price (up from $135.00) on shares of ServiceNow in a research note on Thursday. Citic Securities dropped their price target on ServiceNow from $168.00 to $140.00 and set a "buy" rating for the company in a research note on Thursday, May 21st. Finally, Morgan Stanley set a $180.00 price objective on shares of ServiceNow in a report on Tuesday. One analyst has rated the stock with a Strong Buy rating, thirty-six have issued a Buy rating, two have assigned a Hold rating and three have given a Sell rating to the stock. According to MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and an average price target of $143.39.

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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