Cullen Frost Bankers Inc. Buys 239,229 Shares of ServiceNow, Inc. $NOW

Key Points

• Cullen Frost Bankers Inc. increased its ServiceNow stake by 389.5% in the fourth quarter, adding 239,229 shares to reach 300,653 shares valued at about $46.1 million.
• Institutional investors broadly boosted their holdings in ServiceNow, with firms like Vanguard and Jennison also making large additions; overall, institutions own 87.18% of the stock.
• Sentiment around ServiceNow remains mixed but mostly constructive: Bank of America reinstated coverage with a Buy rating and $130 target, while analysts continue to debate whether AI is a threat or a tailwind for the company’s workflow software business.

Cullen Frost Bankers Inc. boosted its stake in ServiceNow, Inc. (NYSE:NOW - Free Report) by 389.5% during the 4th quarter, according to the company in its most recent disclosure with the SEC. The firm owned 300,653 shares of the information technology services provider's stock after acquiring an additional 239,229 shares during the period. Cullen Frost Bankers Inc.'s holdings in ServiceNow were worth $46,057,000 as of its most recent filing with the SEC.

Several other hedge funds have also added to or reduced their stakes in NOW. Vanguard Group Inc. raised its position in 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 acquiring an additional 81,752,460 shares during the period. Jennison Associates LLC raised its position in ServiceNow by 280.1% in the fourth quarter. Jennison Associates LLC now owns 8,432,389 shares of the information technology services provider's stock worth $1,291,758,000 after acquiring an additional 6,213,762 shares during the period. Nordea Investment Management AB raised its position in ServiceNow by 388.7% in the fourth quarter. Nordea Investment Management AB now owns 4,706,164 shares of the information technology services provider's stock worth $720,325,000 after acquiring an additional 3,743,087 shares during the period. Pictet Asset Management Holding SA raised its position in ServiceNow by 613.4% in the fourth quarter. Pictet Asset Management Holding SA now owns 3,840,262 shares of the information technology services provider's stock worth $588,326,000 after acquiring an additional 3,301,962 shares during the period. Finally, Swedbank AB raised its position in ServiceNow by 326.9% in the fourth quarter. Swedbank AB now owns 3,415,650 shares of the information technology services provider's stock worth $523,243,000 after acquiring an additional 2,615,500 shares during the period. Institutional investors own 87.18% of the company's stock.

Key Headlines Impacting ServiceNow

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: Bank of America reinstated ServiceNow with a Buy rating and $130 price target, saying the company is well positioned for the agentic AI era. BofA Reinstates Coverage of ServiceNow, Salesforce. It Says 1 Is an AI Beneficiary.
• Positive Sentiment: Analysts and media reports said concerns about AI disrupting ServiceNow may be overblown and that AI could instead strengthen its enterprise workflow business. ServiceNow Stock Has Been Battered By AI Disruption Worries. These Experts Think AI Will Actually Boost Its Business
• Positive Sentiment: ServiceNow’s partnership with Experian and its new AI governance products support the view that the company is becoming more central to enterprise AI infrastructure. ServiceNow (NOW) Partners With Experian to Power Autonomous AI Agents With Trusted Data
• Neutral Sentiment: Broader software-sector strength is also helping NOW, as investors rotate back into beaten-down application software names. ServiceNow’s stock heads for best day in a year — flashing a green light for the software sector
• Negative Sentiment: Some reports still point to lingering valuation and “SaaSpocalypse” concerns, suggesting the rebound may not be fully settled yet. ServiceNow stock flashes a death cross amid rising SaaSpocalypse concerns

Analyst Upgrades and Downgrades

Several analysts have commented on the stock. Royal Bank Of Canada reaffirmed an "outperform" rating and issued a $121.00 price objective on shares of ServiceNow in a research report on Tuesday, May 5th. Evercore boosted their price target on shares of ServiceNow from $140.00 to $150.00 and gave the company an "outperform" rating in a research report on Tuesday, May 5th. DA Davidson reissued a "buy" rating and issued a $190.00 price target on shares of ServiceNow in a research report on Tuesday, May 5th. Capital One Financial boosted their price target on shares of ServiceNow from $105.00 to $120.00 and gave the company an "overweight" rating in a research report on Tuesday, May 5th. Finally, Robert W. Baird lowered their price target on shares of ServiceNow from $125.00 to $118.00 and set an "outperform" rating on the stock in a research report on Thursday, April 23rd. Two research analysts have rated the stock with a Strong Buy rating, thirty-three have issued a Buy rating, six have assigned a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, ServiceNow currently has a consensus rating of "Moderate Buy" and an average price target of $141.89.

Insider Activity

In related news, Director Paul Edward Chamberlain sold 1,500 shares of the business's stock in a transaction that occurred on Thursday, May 14th. The shares were sold at an average price of $87.23, for a total transaction of $130,845.00. Following the completion of the transaction, the director owned 44,930 shares of the company's stock, valued at approximately $3,919,243.90. The trade was a 3.23% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Paul Fipps sold 3,696 shares of the business's stock in a transaction that occurred on Monday, February 23rd. The shares were sold at an average price of $101.77, for a total transaction of $376,141.92. Following the transaction, the insider directly owned 8,061 shares of the company's stock, valued at approximately $820,367.97. This represents a 31.44% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 31,767 shares of company stock worth $2,906,098 in the last three months. Insiders own 0.34% of the company's stock.

ServiceNow Stock Performance

NYSE NOW opened at $101.71 on Wednesday. The company's 50 day moving average is $99.72 and its 200-day moving average is $127.48. The firm has a market cap of $104.86 billion, a P/E ratio of 60.61, a price-to-earnings-growth ratio of 1.76 and a beta of 0.82. ServiceNow, Inc. has a 12-month low of $81.24 and a 12-month high of $211.48. 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 issued its quarterly earnings data on Wednesday, April 22nd. The information technology services provider reported $0.97 EPS for the quarter, meeting the consensus estimate of $0.97. The company had revenue of $3.77 billion during the quarter, compared to analysts' expectations of $3.75 billion. ServiceNow had a net margin of 12.59% and a return on equity of 18.16%. ServiceNow's revenue for the quarter was up 22.1% on a year-over-year basis. During the same quarter in the previous year, the company earned $0.81 earnings per share. Sell-side analysts predict that ServiceNow, Inc. will post 2.35 earnings per share for the current year.

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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