Davidson Capital Management Inc. Acquires 14,580 Shares of ServiceNow, Inc. $NOW

Key Points

• Davidson Capital Management boosted its ServiceNow stake by 413.7%, acquiring 14,580 additional shares to hold 18,104 shares worth about $2.77 million after the quarter.
• ServiceNow posted strong Q1 revenue and raised its annual subscription-revenue outlook on AI adoption, but warned the Armis deal will pressure margins (~75 bps FY; ~125 bps in Q2) and Middle East deal delays caused a ~75 bps revenue headwind, fueling near-term volatility.

Davidson Capital Management Inc. increased its holdings in shares of ServiceNow, Inc. (NYSE:NOW - Free Report) by 413.7% during the 4th quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 18,104 shares of the information technology services provider's stock after acquiring an additional 14,580 shares during the period. Davidson Capital Management Inc.'s holdings in ServiceNow were worth $2,773,000 at the end of the most recent reporting period.

Other hedge funds have also bought and sold shares of the company. IAG Wealth Partners LLC increased its position in ServiceNow by 200.0% during the 3rd quarter. IAG Wealth Partners LLC now owns 27 shares of the information technology services provider's stock valued at $25,000 after buying an additional 18 shares in the last quarter. Noble Wealth Management PBC increased its position in ServiceNow by 400.0% during the 4th quarter. Noble Wealth Management PBC now owns 160 shares of the information technology services provider's stock valued at $25,000 after buying an additional 128 shares in the last quarter. Lodestone Wealth Management LLC bought a new position in ServiceNow during the 4th quarter valued at approximately $26,000. Albion Financial Group UT increased its position in ServiceNow by 400.0% during the 4th quarter. Albion Financial Group UT now owns 170 shares of the information technology services provider's stock valued at $26,000 after buying an additional 136 shares in the last quarter. Finally, Avion Wealth increased its position in ServiceNow by 256.0% during the 4th quarter. Avion Wealth now owns 178 shares of the information technology services provider's stock valued at $27,000 after buying an additional 128 shares in the last quarter. Institutional investors own 87.18% of the company's stock.

Key Stories Impacting ServiceNow

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: Q1 results showed solid revenue growth and ServiceNow raised its annual subscription-revenue outlook, citing strong enterprise adoption of its AI products — a driver for longer-term revenue expansion. ServiceNow boosts annual subscription revenue outlook on strong AI software demand
• Positive Sentiment: Strategic moves broaden product reach: ServiceNow closed the Armis acquisition (adds OT/IoT and agentless asset visibility) and deepened ties with Google Cloud while landing customer wins (e.g., TridentCare) — these support cross-sell and AI/security revenue opportunities. ServiceNow inches up after it closes Armis acquisition ServiceNow and Google Cloud unite AI agents for autonomous enterprise operations
• Neutral Sentiment: Management reiterated that AI boosts productivity (CEO expects to hold headcount flat), which could improve operating leverage over time but leaves short-term margin and execution questions open. AI will boost productivity so ServiceNow won't have to backfill open jobs, CEO says
• Negative Sentiment: Near-term margin pressure: ServiceNow warned the Armis deal will dent operating margins (~75 bps full year; ~125 bps in Q2), which was a key reason the stock sold off after hours. Margin guidance concerns are a primary driver of recent volatility. ServiceNow Posts Revenue Growth, But Says Armis Deal Will Weigh on Margins
• Negative Sentiment: Middle East conflict has delayed several large deals, creating a reported ~75 bps revenue headwind in Q1 and contributing to cautious guidance and investor disappointment. Management expects those deals to close later in the year, so impact is timing-related. ServiceNow flags Middle East deal delays, shares crash
• Negative Sentiment: Sector and sentiment pressure: broader AI-disruption fears and elevated short interest in ServiceNow amplified the reaction to mixed guidance/ margin news, prompting sharp intraday moves in NOW and other software names. US software stocks slide as IBM, ServiceNow results reignite AI disruption fears

Analyst Ratings Changes

NOW has been the topic of a number of analyst reports. Needham & Company LLC reiterated a "buy" rating and issued a $155.00 price target on shares of ServiceNow in a research note on Thursday, February 5th. BNP Paribas Exane upgraded shares of ServiceNow from a "neutral" rating to an "outperform" rating and set a $140.00 price target on the stock in a research note on Monday, March 16th. Citigroup reiterated a "buy" rating and issued a $177.00 price target (down from $237.00) on shares of ServiceNow in a research note on Wednesday, April 15th. Argus upgraded shares of ServiceNow to a "strong-buy" rating in a research note on Wednesday, February 4th. Finally, Benchmark assumed coverage on shares of ServiceNow in a research report on Wednesday, April 1st. They set a "buy" rating and a $125.00 price target for the company. Three analysts have rated the stock with a Strong Buy rating, thirty-four have given a Buy rating, six have given a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, ServiceNow presently has an average rating of "Moderate Buy" and an average price target of $173.46.

Insider Transactions at ServiceNow

In other news, insider Paul Fipps sold 3,696 shares of the stock in a transaction on Monday, February 23rd. The stock was 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 $820,367.97. This represents a 31.44% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, Director Paul Edward Chamberlain sold 1,500 shares of the stock in a transaction on Thursday, February 12th. The shares were sold at an average price of $101.17, for a total value of $151,755.00. Following the transaction, the director directly owned 46,430 shares in the company, valued at $4,697,323.10. The trade was a 3.13% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 16,237 shares of company stock worth $1,697,162 over the last three months. 0.34% of the stock is currently owned by company insiders.

ServiceNow Trading Up 3.0%

Shares of NYSE:NOW opened at $103.16 on Thursday. The company has a market cap of $106.89 billion, a P/E ratio of 61.85, a PEG ratio of 1.68 and a beta of 1.01. The company has a debt-to-equity ratio of 0.12, a current ratio of 1.00 and a quick ratio of 1.00. ServiceNow, Inc. has a 1 year low of $81.24 and a 1 year high of $211.48. The stock's fifty day moving average price is $105.55 and its 200-day moving average price is $138.83.

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 13.16% and a return on equity of 18.54%. 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 $4.04 earnings per share. The business's revenue for the quarter was up 22.1% on a year-over-year basis. Sell-side analysts expect that ServiceNow, Inc. will post 2.49 earnings per share for the current year.

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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