Capital Investment Services of America Inc. Grows Stock Position in ServiceNow, Inc. $NOW

Key Points

• Capital Investment Services of America boosted its stake in ServiceNow by 393% in Q4 to 180,159 shares worth about $27.6 million, making NOW its 15th largest holding (≈2.6% of the firm's portfolio).
• Multiple other institutions (including Sumitomo Mitsui, Telos, Cohen Klingenstein) also increased positions in Q4, leaving hedge funds and institutional investors with roughly 87.18% ownership of ServiceNow.
• Analysts have cut near‑term price targets after the quarter but the consensus remains a Moderate Buy with a $146.65 average target; ServiceNow beat Q1 revenue/earnings and is pursuing AI and the Armis acquisition, though margin/guidance concerns and geopolitical deal delays have pressured the stock.

Capital Investment Services of America Inc. lifted its stake in ServiceNow, Inc. (NYSE:NOW - Free Report) by 393.0% in the fourth quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The firm owned 180,159 shares of the information technology services provider's stock after purchasing an additional 143,619 shares during the period. ServiceNow comprises about 2.6% of Capital Investment Services of America Inc.'s holdings, making the stock its 15th largest holding. Capital Investment Services of America Inc.'s holdings in ServiceNow were worth $27,599,000 as of its most recent filing with the Securities and Exchange Commission.

Other hedge funds and other institutional investors have also recently bought and sold shares of the company. Cohen Klingenstein LLC raised its position in shares of ServiceNow by 400.0% in the 4th quarter. Cohen Klingenstein LLC now owns 10,000 shares of the information technology services provider's stock valued at $1,532,000 after purchasing an additional 8,000 shares in the last quarter. Sumitomo Mitsui Trust Group Inc. raised its position in shares of ServiceNow by 385.9% in the 4th quarter. Sumitomo Mitsui Trust Group Inc. now owns 2,599,397 shares of the information technology services provider's stock valued at $398,202,000 after purchasing an additional 2,064,440 shares in the last quarter. Natural Investments LLC raised its position in shares of ServiceNow by 332.0% in the 4th quarter. Natural Investments LLC now owns 16,453 shares of the information technology services provider's stock valued at $2,520,000 after purchasing an additional 12,644 shares in the last quarter. Focus Financial Network Inc. raised its position in shares of ServiceNow by 286.1% in the 4th quarter. Focus Financial Network Inc. now owns 53,650 shares of the information technology services provider's stock valued at $8,219,000 after purchasing an additional 39,756 shares in the last quarter. Finally, Telos Capital Management Inc. raised its position in shares of ServiceNow by 706.0% in the 4th quarter. Telos Capital Management Inc. now owns 50,940 shares of the information technology services provider's stock valued at $7,803,000 after purchasing an additional 44,620 shares in the last quarter. 87.18% of the stock is currently owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

NOW has been the topic of a number of recent analyst reports. Evercore cut their target price on ServiceNow from $175.00 to $140.00 and set an "outperform" rating on the stock in a research report on Thursday. Citizens Jmp cut their target price on ServiceNow from $260.00 to $157.00 and set a "market outperform" rating on the stock in a research report on Thursday. Cantor Fitzgerald cut their target price on ServiceNow to $122.00 and set an "overweight" rating on the stock in a research report on Thursday. Capital One Financial cut their target price on ServiceNow from $158.00 to $113.00 and set an "overweight" rating on the stock in a research report on Thursday, April 16th. Finally, Wells Fargo & Company cut their target price on ServiceNow from $185.00 to $160.00 and set an "overweight" rating on the stock in a research report on Thursday. Two analysts have rated the stock with a Strong Buy rating, thirty-four have issued a Buy rating, six have assigned a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and a consensus price target of $146.65.

Trending Headlines about ServiceNow

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: Company fundamentals and AI traction remain supportive — ServiceNow beat revenue/earnings views for Q1 and highlighted accelerating AI product adoption (Now Assist / AI agents) that management says will drive long‑term growth. ServiceNow Reports First Quarter 2026 Financial Results
• Positive Sentiment: Strategic moves boost the product and security stack — ServiceNow closed the $7.75B Armis acquisition (extends security capabilities) and deepened Google Cloud AI partnerships, which support cross‑sell and AI workflow positioning. Armis acquisition Google Cloud partnership
• Neutral Sentiment: Mixed analyst reactions — Several firms reaffirmed buy/overweight ratings (some even raised PTs), but many cut targets after the quarter; consensus still leaves upside from current levels, reflecting disagreement over near‑term vs. long‑term outlook. Analyst coverage
• Negative Sentiment: Geopolitical deal delays hit near‑term growth — Management said Middle East conflict delayed several large deal closings (≈75 bps revenue headwind in Q1), and that pushed investors to downgrade near‑term growth expectations. Middle East deal delays
• Negative Sentiment: Margin and guidance concerns — Investors focused on acquisition costs (Armis) and a softer margin outlook/full‑year subscription guidance that many viewed as disappointing, triggering the sector‑wide selloff. Margin/guidance coverage
• Negative Sentiment: Short interest jumped — Short interest rose ~30% in April to ~38.95M shares (~3.8% of shares), increasing potential downside pressure and volatility if bearish sentiment persists.

ServiceNow Stock Up 6.3%

NOW opened at $90.09 on Friday. The company has a debt-to-equity ratio of 0.13, a current ratio of 0.84 and a quick ratio of 1.00. The company has a market capitalization of $93.34 billion, a PE ratio of 53.69, a price-to-earnings-growth ratio of 1.42 and a beta of 1.01. The business has a 50-day moving average of $104.84 and a 200-day moving average of $137.51. ServiceNow, Inc. has a fifty-two week low of $81.24 and a fifty-two week high of $211.48.

ServiceNow (NYSE:NOW - Get Free Report) last issued its quarterly earnings data on Wednesday, April 22nd. The information technology services provider reported $0.97 EPS for the quarter, meeting analysts' consensus estimates of $0.97. The business had revenue of $3.77 billion for the quarter, compared to analyst estimates of $3.75 billion. ServiceNow had a return on equity of 18.16% and a net margin of 12.59%.The firm's revenue for the quarter was up 22.1% on a year-over-year basis. During the same quarter in the prior year, the firm posted $0.81 EPS. Equities research analysts forecast that ServiceNow, Inc. will post 2.49 EPS for the current fiscal year.

Insider Activity

In other news, Director Paul Edward Chamberlain sold 1,500 shares of the stock in a transaction dated Thursday, February 12th. The stock was sold at an average price of $101.17, for a total transaction of $151,755.00. Following the transaction, the director owned 46,430 shares of the company's stock, valued at approximately $4,697,323.10. This represents a 3.13% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Also, insider Kevin Thomas Mcbride sold 1,400 shares of the firm's stock in a transaction that occurred on Friday, February 13th. The shares were sold at an average price of $105.71, for a total value of $147,994.00. Following the completion of the sale, the insider directly owned 26,314 shares in the company, valued at $2,781,652.94. This trade represents a 5.05% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last quarter, insiders have sold 16,237 shares of company stock valued at $1,697,162. 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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