Cidel Asset Management Inc. Acquires 57,018 Shares of ServiceNow, Inc. $NOW

Key Points

• Cidel Asset Management acquired 57,018 ServiceNow shares in the third quarter, valued at approximately $7.64 million. Institutional investors collectively own 87.18% of the company.
• ServiceNow reported 20.5% year-over-year revenue growth to $4.11 billion, but quarterly EPS of $1.00 narrowly missed the $1.02 consensus estimate. Investor concerns about slower contracted-backlog growth contributed to the stock’s sell-off.
• Analysts remain broadly positive, with a consensus “Moderate Buy” rating and a $154.50 price target, although several firms recently reduced their targets. Recent insider activity was negative, with insiders selling about $1.94 million of stock over 90 days.

Cidel Asset Management Inc. acquired a new position in shares of ServiceNow, Inc. (NYSE:NOW - Free Report) in the third quarter, according to its most recent disclosure with the Securities and Exchange Commission. The fund acquired 57,018 shares of the information technology services provider's stock, valued at approximately $7,641,000.

Other hedge funds also recently made changes to their positions in the company. A. D. Beadell Investment Counsel Inc. increased its stake in ServiceNow by 2.9% in the second quarter. A. D. Beadell Investment Counsel Inc. now owns 2,818 shares of the information technology services provider's stock valued at $279,000 after acquiring an additional 80 shares during the last quarter. DUTCH ASSET Corp raised its position in ServiceNow by 0.5% during the third quarter. DUTCH ASSET Corp now owns 16,331 shares of the information technology services provider's stock valued at $2,189,000 after purchasing an additional 82 shares in the last quarter. Atwood & Palmer Inc. lifted its stake in ServiceNow by 20.0% during the second quarter. Atwood & Palmer Inc. now owns 600 shares of the information technology services provider's stock worth $60,000 after purchasing an additional 100 shares during the last quarter. Diligent Investors LLC lifted its stake in ServiceNow by 4.1% during the third quarter. Diligent Investors LLC now owns 2,560 shares of the information technology services provider's stock worth $343,000 after purchasing an additional 100 shares during the last quarter. Finally, Signature Wealth Management Partners LLC lifted its stake in ServiceNow by 3.3% during the third quarter. Signature Wealth Management Partners LLC now owns 3,281 shares of the information technology services provider's stock worth $440,000 after purchasing an additional 106 shares during the last quarter. 87.18% of the stock is owned by institutional investors.

ServiceNow Price Performance

Shares of ServiceNow stock opened at $105.12 on Friday. The company's fifty day simple moving average is $138.71 and its two-hundred day simple moving average is $115.45. ServiceNow, Inc. has a 12-month low of $81.24 and a 12-month high of $189.53. The firm has a market cap of $109.11 billion, a PE ratio of 75.63, a price-to-earnings-growth ratio of 1.94 and a beta of 0.99. The company has a quick ratio of 0.70, a current ratio of 0.72 and a debt-to-equity ratio of 0.42.

ServiceNow (NYSE:NOW - Get Free Report) last issued its quarterly earnings data on Wednesday, October 28th. The information technology services provider reported $1.00 EPS for the quarter, missing the consensus estimate of $1.02 by ($0.02). The firm had revenue of $4.11 billion for the quarter, compared to the consensus estimate of $4.09 billion. ServiceNow had a net margin of 9.36% and a return on equity of 15.17%. The business's revenue was up 20.5% on a year-over-year basis. During the same period last year, the company posted $4.82 earnings per share. As a group, equities analysts expect that ServiceNow, Inc. will post 2.14 EPS for the current year.

Insider Activity at ServiceNow

In related news, insider Jacqueline Canney sold 7,847 shares of the business's stock in a transaction dated Friday, August 28th. The stock was sold at an average price of $138.00, for a total transaction of $1,082,886.00. Following the transaction, the insider owned 30,042 shares in the company, valued at $4,145,796. The trade was a 20.71% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Paul Chamberlain sold 2,700 shares of the company's stock in a transaction that occurred on Thursday, August 27th. The shares were sold at an average price of $135.50, for a total value of $365,850.00. Following the transaction, the director directly owned 43,990 shares of the company's stock, valued at $5,960,645. The trade was a 5.78% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 14,081 shares of company stock worth $1,937,904 in the last 90 days. Company insiders own 0.34% of the company's stock.

Analysts Set New Price Targets

Several equities analysts have recently commented on NOW shares. Benchmark reiterated a "buy" rating on shares of ServiceNow in a research report on Friday, July 17th. BTIG Research decreased their price objective on ServiceNow from $170.00 to $150.00 and set a "buy" rating on the stock in a report on Thursday. Wells Fargo & Company cut their target price on ServiceNow from $190.00 to $175.00 and set an "overweight" rating for the company in a research note on Thursday. CLSA began coverage on shares of ServiceNow in a research report on Monday, July 20th. They set an "underperform" rating and a $72.00 price target on the stock. Finally, Piper Sandler reissued an "overweight" rating and set a $175.00 price target on shares of ServiceNow in a research note on Thursday. One equities research analyst has rated the stock with a Strong Buy rating, thirty-six have assigned a Buy rating, three have given a Hold rating and three have given a Sell rating to the company. According to data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and a consensus price target of $154.50.

Trending Headlines about ServiceNow

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: ServiceNow reported 20.5% year-over-year revenue growth, supported by subscription demand, and raised its 2026 artificial-intelligence contract target to $1.7 billion. Management and bullish analysts argue that AI adoption could accelerate growth in 2027. ServiceNow: 3 Key Takeaways for Long-Term Investors
• Positive Sentiment: Several analysts continue to rate NOW Buy or Overweight despite reducing their price targets. JPMorgan, Piper Sandler, Wells Fargo and Oppenheimer still see substantial long-term upside, suggesting the sell-off may have been excessive. ServiceNow stock is on track for its largest drop on record
• Positive Sentiment: A new partnership with BDO Canada will help organizations govern AI and automate operations using ServiceNow’s platform, providing potential support for future enterprise demand. BDO Canada partners with ServiceNow
• Neutral Sentiment: ServiceNow’s CEO has defended the company’s valuation and long-term opportunity, while a reported $3 million insider stock purchase may signal management confidence. However, such commentary has not offset investor concerns about guidance. ServiceNow CEO makes striking unicorn claim
• Negative Sentiment: The primary catalyst for the sell-off was management’s forecast for slower fourth-quarter current remaining performance obligation growth—about 18.5%, below the approximately 21.5% revenue-growth outlook. Because cRPO represents contracted future revenue, investors viewed the gap as a warning that demand may be weakening. ServiceNow Guides to Slower Backlog Growth
• Negative Sentiment: Third-quarter adjusted earnings of $1.00 per share fell short of the $1.02 consensus estimate. The miss, combined with concerns that AI could disrupt traditional software pricing and demand, overshadowed the revenue beat and higher AI target. ServiceNow shares plunge after earnings
• Negative Sentiment: Investors are also monitoring ServiceNow’s roughly $7.5 billion debt load and rising interest costs, while a shareholder investigation into potential securities-law violations adds reputational and legal uncertainty. ServiceNow’s Debt and Interest Costs Jump

ServiceNow Profile

ServiceNow, Inc provides cloud-based software designed to help organizations digitize, automate and manage enterprise workflows. Its Now Platform connects people, processes and systems across departments, enabling customers to manage work through a centralized technology environment.

The company's products and services address a range of business needs, including information technology service management, IT operations management, customer service management, human resources service delivery, security operations, risk and compliance, and application development.

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