Dearborn Partners LLC Buys Shares of 9,816 ServiceNow, Inc. $NOW

Key Points

• Dearborn Partners acquired 9,816 ServiceNow shares during the second quarter, a new position valued at approximately $975,000. Institutional investors and hedge funds collectively own 87.18% of the company.
• ServiceNow reported quarterly earnings of $0.90 per share, beating estimates, while revenue rose 24% year over year to $3.99 billion. Enterprise AI adoption, including more than $1 billion in annual contract value, remains a major growth catalyst.
• Analyst sentiment is broadly positive, with a consensus “Moderate Buy” rating and an average price target of $144.24. Shares opened at $138.50, after several firms recently raised their price targets.

Dearborn Partners LLC acquired a new stake in shares of ServiceNow, Inc. (NYSE:NOW - Free Report) in the second quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The fund acquired 9,816 shares of the information technology services provider's stock, valued at approximately $975,000.

Other hedge funds also recently modified their holdings of the company. Millstone Evans Group LLC increased its position in shares of ServiceNow by 400.0% during the fourth 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 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 valued at $25,000 after buying an additional 135 shares during the last quarter. Blueline Advisors LLC acquired a new stake in ServiceNow in the 4th quarter valued at $25,000. Measured Wealth Private Client Group LLC lifted its position in ServiceNow by 560.0% during the 4th quarter. Measured Wealth Private Client Group LLC now owns 165 shares of the information technology services provider's stock worth $25,000 after buying an additional 140 shares in the last quarter. Finally, AlphaCentric Advisors LLC acquired a new position in shares of ServiceNow during the 4th quarter worth about $25,000. Institutional investors and hedge funds own 87.18% of the company's stock.

ServiceNow News Roundup

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: Salesforce earnings lifted the sector. Salesforce’s strong quarterly results, raised guidance and “Claudeforce” AI announcement eased fears of a broad “SaaS-pocalypse.” The read-through suggests businesses are adding AI tools to existing software platforms rather than replacing them, benefiting ServiceNow. Why ServiceNow Rallied Today
• Positive Sentiment: Enterprise AI momentum remains a key catalyst. Reports highlighted ServiceNow’s more than $1 billion in AI annual contract value, expanding customer adoption and the potential for its AI Control Tower and agentic-AI products to create additional revenue streams. Agentic AI Adoption Boosts NOW's Growth Prospects Against MSFT & CRM
• Positive Sentiment: Technical and analyst sentiment improved. ServiceNow cleared an early buy point as disruption fears faded, while coverage cited positive price-target actions and a potential sector re-rating. ServiceNow, IBD Stock Of The Day
• Positive Sentiment: Platform integrations support monetization. Pricefx announced an integration that brings AI-powered deal optimization and sales guidance to ServiceNow workflows, reinforcing the platform’s ecosystem and enterprise-use case. Pricefx Announces Integration with ServiceNow

Wall Street Analyst Weigh In

A number of analysts recently issued reports on NOW shares. Bank of America lifted their target price on ServiceNow from $130.00 to $150.00 and gave the company a "buy" rating in a research report on Wednesday, August 19th. Wells Fargo & Company reiterated an "overweight" rating and set a $175.00 price objective (up from $160.00) on shares of ServiceNow in a research note on Wednesday, August 12th. Needham & Company LLC reissued a "buy" rating and issued a $115.00 price objective on shares of ServiceNow in a report on Thursday, July 23rd. Capital One Financial boosted their target price on shares of ServiceNow from $105.00 to $120.00 and gave the stock an "overweight" rating in a report on Tuesday, May 5th. Finally, Truist Financial increased their price target on shares of ServiceNow from $120.00 to $130.00 and gave the company a "buy" rating in a research note on Thursday, July 9th. One 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 two have issued a Sell rating to the stock. Based on data from MarketBeat, ServiceNow has a consensus rating of "Moderate Buy" and an average price target of $144.24.

ServiceNow Stock Performance

NYSE:NOW opened at $138.50 on Friday. ServiceNow, Inc. has a fifty-two week low of $81.24 and a fifty-two week high of $194.73. The company has a market cap of $143.20 billion, a price-to-earnings ratio of 86.56, a PEG ratio of 2.21 and a beta of 0.94. The company has a debt-to-equity ratio of 0.43, a quick ratio of 0.70 and a current ratio of 0.70. The stock has a fifty day moving average price of $111.34 and a 200-day moving average price of $106.33.

ServiceNow (NYSE:NOW - Get Free Report) last released its quarterly earnings data on Wednesday, July 22nd. The information technology services provider reported $0.90 earnings per share for the quarter, beating the consensus estimate of $0.86 by $0.04. The business had revenue of $3.99 billion for the quarter, compared to analyst estimates of $3.93 billion. ServiceNow had a return on equity of 16.45% and a net margin of 11.34%.ServiceNow's revenue was up 24.0% compared to the same quarter last year. During the same period last year, the firm posted $0.81 earnings per share. As a group, equities analysts anticipate that ServiceNow, Inc. will post 2.24 EPS for the current fiscal year.

Insiders Place Their Bets

In other ServiceNow news, Director Paul Edward Chamberlain sold 1,500 shares of ServiceNow stock in a transaction dated Thursday, August 13th. The stock was sold at an average price of $125.60, for a total transaction of $188,400.00. Following the transaction, the director directly owned 46,690 shares of the company's stock, valued at approximately $5,864,264. The trade was a 3.11% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 0.34% of the stock is owned by insiders.

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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