Deutsche Bank AG Takes Position in ServiceNow, Inc. $NOW

Key Points

• Deutsche Bank acquired 5.99 million ServiceNow shares worth approximately $595.2 million during the second quarter, giving it a 0.58% stake. Institutional investors collectively own 87.18% of the company.
• ServiceNow reported quarterly revenue of $3.99 billion, up 24% year over year, and EPS of $0.90, beating analyst expectations. The company’s stock opened at $117.70, while its valuation remained elevated at a P/E ratio of 73.56.
• Analyst sentiment is broadly positive, with a consensus “Moderate Buy” rating and a $143.76 target price, although valuation, software-sector weakness and execution risks tied to the planned $7.75 billion Armis acquisition remain concerns.

Deutsche Bank AG bought a new position in shares of ServiceNow, Inc. (NYSE:NOW - Free Report) during the second quarter, according to its most recent filing with the SEC. The fund bought 5,994,734 shares of the information technology services provider's stock, valued at approximately $595,157,000. Deutsche Bank AG owned 0.58% of ServiceNow at the end of the most recent reporting period.

Other hedge funds and other institutional investors also recently made changes to their positions in the company. Wealth Watch Advisors INC bought a new stake in ServiceNow in the third quarter worth about $29,000. Kelleher Financial Advisors purchased a new stake in shares of ServiceNow during the 3rd quarter valued at approximately $50,000. Pin Oak Investment Advisors Inc. boosted its holdings in shares of ServiceNow by 20.7% in the third quarter. Pin Oak Investment Advisors Inc. now owns 134 shares of the information technology services provider's stock worth $123,000 after acquiring an additional 23 shares during the period. Jupiter Wealth Management LLC purchased a new position in ServiceNow during the 2nd quarter valued at about $154,000. Finally, CBIZ Investment Advisory Services LLC grew its stake in ServiceNow by 540.0% during the fourth quarter. CBIZ Investment Advisory Services LLC now owns 160 shares of the information technology services provider's stock valued at $25,000 after acquiring an additional 135 shares in the last quarter. 87.18% of the stock is owned by hedge funds and other institutional investors.

Insider Activity

In other news, Director Paul Edward Chamberlain sold 1,500 shares of the 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 in the company, valued at approximately $5,864,264. This represents a 3.11% decrease in their position. The sale was disclosed in a document filed 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. Insiders own 0.34% of the company's stock.

ServiceNow Stock Performance

NYSE NOW opened at $117.70 on Tuesday. ServiceNow, Inc. has a 52-week low of $81.24 and a 52-week high of $194.73. The company has a fifty day moving average of $107.15 and a 200-day moving average of $105.49. The company has a market capitalization of $121.70 billion, a P/E ratio of 73.56, a P/E/G ratio of 2.18 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.

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

Key Stories Impacting ServiceNow

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: Cybersecurity expansion supports long-term growth. ServiceNow’s planned $7.75 billion acquisition of Armis would broaden its AI-powered security platform and strengthen its preventive cyber-defense offerings. The appointment of former Armis executive Simon Mouyal as chief marketing officer also signals an increased focus on security and go-to-market execution. ServiceNow Is Spending $7.75 Billion On AI Security
• Positive Sentiment: Analyst support remains firm. TD Cowen reaffirmed its Buy rating and assigned a $140 price target, implying meaningful upside from the referenced market level. Analysts cited ServiceNow’s expanding security platform, AI workflow opportunities and recurring-revenue model. ServiceNow Earns Buy Rating
• Positive Sentiment: Fundamentals and AI momentum continue to attract dip buyers. Recent commentary points to roughly 24% year-over-year revenue growth and a substantial rebound from the stock’s lows. Some investors view support near the 200-day moving average as an opportunity if the company’s growth remains intact. NOW Stock Has Rebounded Over 54%
• Neutral Sentiment: Institutional positioning is mixed. JPMorgan added a large position, while T. Rowe Price, Wellington Management and several other firms reduced holdings. The split suggests continued disagreement about valuation and the pace of the recovery.
• Neutral Sentiment: A director sold shares under a pre-arranged Rule 10b5-1 plan. Paul Edward Chamberlain sold 1,500 shares worth approximately $188,400, reducing his holdings by 3.11%. Because the transaction was scheduled in advance, it provides limited evidence of a change in the company’s outlook. SEC Insider Filing
• Negative Sentiment: Valuation remains a major concern. Even after a reported 30.5% decline over the past year, commentary argues that ServiceNow still does not look inexpensive, leaving the stock vulnerable to further pressure if growth expectations soften. ServiceNow Stock Still Looks Expensive
• Negative Sentiment: Broad software-sector weakness is weighing on the shares. Investors have been rotating toward semiconductor and AI-hardware stocks, pressuring software names including ServiceNow, Adobe and Intuit. The sizable Armis acquisition also introduces execution, integration and spending risks.

Analyst Upgrades and Downgrades

Several research analysts have commented on the stock. Wolfe Research set a $125.00 price target on shares of ServiceNow in a report on Thursday, April 23rd. Barclays reiterated an "overweight" rating and issued a $134.00 price objective (up from $132.00) on shares of ServiceNow in a research report on Tuesday, May 5th. CLSA initiated coverage on ServiceNow in a research note on Monday, July 20th. They set an "underperform" rating and a $72.00 price objective for the company. Bank of America assumed coverage on ServiceNow in a research report on Monday, May 18th. They set a "buy" rating and a $130.00 target price for the company. Finally, Stifel Nicolaus decreased their target price on ServiceNow from $135.00 to $120.00 and set a "buy" rating on the stock in a research note on Thursday, April 23rd. One analyst has rated the stock with a Strong Buy rating, thirty-six have issued a Buy rating, two have assigned a Hold rating and three have issued a Sell rating to the stock. Based on data from MarketBeat, the company has an average rating of "Moderate Buy" and a consensus target price of $143.76.

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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