Capital Group Investment Management PTE. LTD. Boosts Holdings in ServiceNow, Inc. $NOW

Key Points

• Capital Group Investment Management PTE. LTD. increased its ServiceNow stake by 452% in the fourth quarter, ending with 27,621 shares worth about $4.23 million.
• ServiceNow reported Q1 earnings of $0.97 per share, matching estimates, while revenue of $3.77 billion slightly topped forecasts and rose 22.1% year over year.
• Despite generally bullish analyst coverage and a Moderate Buy consensus target of $141.85, some firms have cut price targets as the stock has faced pressure from valuation concerns, competition, and broader market weakness.

Capital Group Investment Management PTE. LTD. lifted its stake in ServiceNow, Inc. (NYSE:NOW - Free Report) by 452.0% in the 4th quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The firm owned 27,621 shares of the information technology services provider's stock after purchasing an additional 22,617 shares during the period. Capital Group Investment Management PTE. LTD.'s holdings in ServiceNow were worth $4,231,000 as of its most recent SEC filing.

Several other institutional investors and hedge funds have also recently modified their holdings of NOW. IAG Wealth Partners LLC lifted its position in shares of ServiceNow by 200.0% in the 3rd 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. Noble Wealth Management PBC lifted its position in shares of ServiceNow by 400.0% in the 4th quarter. Noble Wealth Management PBC now owns 160 shares of the information technology services provider's stock worth $25,000 after purchasing an additional 128 shares during the period. Millstone Evans Group LLC increased its stake in shares of ServiceNow by 400.0% in 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 in the last quarter. CBIZ Investment Advisory Services LLC increased its stake in shares of ServiceNow by 540.0% in 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 in the last quarter. Finally, Blueline Advisors LLC bought a new position in shares of ServiceNow in the 4th quarter worth about $25,000. 87.18% of the stock is owned by hedge funds and other institutional investors.

ServiceNow Stock Performance

Shares of NOW stock opened at $112.45 on Friday. The company has a 50 day moving average price of $99.48 and a 200-day moving average price of $122.03. ServiceNow, Inc. has a 52 week low of $81.24 and a 52 week high of $211.48. The firm has a market capitalization of $115.94 billion, a PE ratio of 67.02, a P/E/G ratio of 1.86 and a beta of 0.94. The company has a quick ratio of 0.84, a current ratio of 0.84 and a debt-to-equity ratio of 0.13.

ServiceNow (NYSE:NOW - Get Free Report) last announced its quarterly 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. ServiceNow had a net margin of 12.59% and a return on equity of 18.16%. 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 previous year, the business posted $0.81 earnings per share. The business's revenue for the quarter was up 22.1% on a year-over-year basis. As a group, equities research analysts expect that ServiceNow, Inc. will post 2.35 earnings per share for the current year.

Analysts Set New Price Targets

Several brokerages recently issued reports on NOW. Deutsche Bank Aktiengesellschaft decreased their price target on shares of ServiceNow from $180.00 to $135.00 and set a "buy" rating for the company in a research note on Thursday, April 16th. Benchmark began coverage on shares of ServiceNow in a research note on Wednesday, April 1st. They issued a "buy" rating and a $125.00 price target for the company. Citizens Jmp reiterated a "market outperform" rating and issued a $157.00 price target on shares of ServiceNow in a research note on Tuesday, May 5th. HSBC decreased their price target on shares of ServiceNow from $226.00 to $171.00 and set a "buy" rating for the company in a research note on Thursday, April 16th. Finally, Barclays reiterated an "overweight" rating and issued a $134.00 price target (up from $132.00) 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-five have given a Buy rating, five have given a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, the company has a consensus 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: New coverage highlights bullish catalysts for ServiceNow, including accelerating AI adoption, a model-agnostic architecture, and a possible path to $30 billion in revenue by 2030, which supports the long-term growth story. Article Title
• Positive Sentiment: Cognizant’s integration with ServiceNow’s AI Control Tower underscores growing demand for ServiceNow’s AI governance tools in regulated enterprise environments, potentially expanding use cases and customer adoption. Article Title
• Positive Sentiment: Analysts and recent commentary say EmployeeWorks is gaining traction quickly, with larger deals and broader AI adoption helping to reinforce ServiceNow’s growth narrative. Article Title
• Neutral Sentiment: ServiceNow’s recent conference appearances and transcript releases keep the company visible to investors, but they do not appear to contain a major new catalyst on their own. Article Title
• Neutral Sentiment: Some valuation-focused coverage notes that the stock has had a mixed year, with a strong recent bounce offset by weaker longer-term performance, suggesting investors are still debating whether the rebound is justified. Article Title
• Negative Sentiment: Multiple articles point to pressure on the shares from acquisition integration costs, deal delays, and intensifying competition, which are weighing on near-term expectations. Article Title
• Negative Sentiment: Friday’s decline is also being driven by a broader market sell-off, with enterprise software and other growth names facing risk-off trading as investors pull back from higher-valuation tech. Article Title
• Negative Sentiment: Additional commentary notes that large insider buying in ServiceNow occurred near the peak of earlier SaaS pessimism, highlighting how far sentiment and the stock have already fallen since then. Article Title

Insider Activity at ServiceNow

In other news, Director Anita M. Sands sold 16,445 shares of ServiceNow stock in a transaction that occurred on Thursday, May 14th. The shares were sold at an average price of $90.14, for a total value of $1,482,352.30. Following the completion of the sale, the director directly owned 30,090 shares in the company, valued at $2,712,312.60. The trade was a 35.34% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, insider Paul Fipps sold 1,048 shares of ServiceNow stock in a transaction that occurred on Monday, May 18th. The stock was sold at an average price of $98.51, for a total transaction of $103,238.48. Following the completion of the sale, the insider owned 12,072 shares of the company's stock, valued at $1,189,212.72. This represents a 7.99% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. 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. Over the last three months, insiders have sold 28,071 shares of company stock valued at $2,529,956. Insiders own 0.34% of the company's stock.

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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