Diversified Management Inc. Buys Shares of 12,500 ServiceNow, Inc. $NOW

Key Points

• Diversified Management Inc. bought a new stake of 12,500 shares of ServiceNow in Q4, valued at about $1.915 million.
• Several large institutions (Nordea, Sumitomo Mitsui Trust, Wellcome Trust, SG Americas, Aberdeen) made substantial purchases, leaving institutional ownership at 87.18% of the float.
• Despite a modest quarterly beat (EPS $0.92 vs. $0.89; revenue $3.57B, +20.7% YoY), ServiceNow is down roughly 43% YTD amid analyst target cuts, though consensus remains a Moderate Buy with a $179.85 price target.

Diversified Management Inc. bought a new stake in ServiceNow, Inc. (NYSE:NOW - Free Report) during the 4th quarter, according to its most recent filing with the Securities and Exchange Commission. The firm bought 12,500 shares of the information technology services provider's stock, valued at approximately $1,915,000.

Several other hedge funds and other institutional investors also recently modified their holdings of the stock. Nordea Investment Management AB lifted its holdings in shares of ServiceNow by 388.7% in the 4th quarter. Nordea Investment Management AB now owns 4,706,164 shares of the information technology services provider's stock valued at $720,325,000 after buying an additional 3,743,087 shares during the period. Sumitomo Mitsui Trust Group Inc. lifted its holdings in shares of ServiceNow by 385.9% in the 4th quarter. Sumitomo Mitsui Trust Group Inc. now owns 2,599,397 shares of the information technology services provider's stock valued at $398,202,000 after buying an additional 2,064,440 shares during the period. WELLCOME TRUST LTD THE as trustee of the WELLCOME TRUST lifted its holdings in shares of ServiceNow by 400.0% in the 4th quarter. WELLCOME TRUST LTD THE as trustee of the WELLCOME TRUST now owns 2,250,000 shares of the information technology services provider's stock valued at $344,678,000 after buying an additional 1,800,000 shares during the period. SG Americas Securities LLC lifted its holdings in shares of ServiceNow by 11,128.7% in the 4th quarter. SG Americas Securities LLC now owns 1,805,467 shares of the information technology services provider's stock valued at $276,579,000 after buying an additional 1,789,388 shares during the period. Finally, Aberdeen Group plc lifted its holdings in shares of ServiceNow by 405.0% in the 4th quarter. Aberdeen Group plc now owns 1,448,931 shares of the information technology services provider's stock valued at $221,962,000 after buying an additional 1,162,005 shares during the period. 87.18% of the stock is currently owned by hedge funds and other institutional investors.

Key Stories Impacting ServiceNow

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: Expanded Latin America footprint — ServiceNow announced new data centers in Rio de Janeiro and Brasilia and reports record enterprise adoption in Brazil, positioning the platform as an AI-powered workflow hub for large regional customers; this supports revenue growth and local compliance demand. ServiceNow Expands AI Workflow Hub In Brazil As Regional Role Grows
• Positive Sentiment: Modest Q1 beat expected — previews point to a modest quarter beat driven by early AI-driven demand, which reduces near-term earnings risk and is a catalyst ahead of the April 22 earnings report. ServiceNow Seen Delivering Modest Q1 Beat
• Positive Sentiment: Risk‑on market flows into quality SaaS — broader risk‑on buying (partly driven by easing geopolitical tensions) has pushed investors back into high‑margin subscription names like ServiceNow that have clear AI monetization paths. Atlassian and Shopify Shares Are Soaring, What You Need To Know
• Positive Sentiment: Product partnerships add enterprise AI value — a new alliance with Qlik to surface governed analytics inside ServiceNow workflows strengthens the company’s position as an “enterprise AI nerve center,” which can expand wallet share. ServiceNow Qlik Alliance Aims To Make NOW The Enterprise AI Nerve Center
• Neutral Sentiment: Partner ecosystem updates and integrations (e.g., TrustCloud, top partner recognitions) boost go‑to‑market execution but are incremental near-term revenue drivers. TrustCloud Brings AI-Driven Cyber Risk Automation Directly Into ServiceNow
• Neutral Sentiment: Execution gap highlighted in CX research — ServiceNow’s India CX report shows leaders investing in AI but customers not yet feeling the impact, which signals both opportunity and execution risk. 48% of Indian Customers Cite Lack of Empathy in CX, But Only 19% of Leaders Address It with AI - Reports ServiceNow
• Negative Sentiment: Analyst target cuts and cautious notes — multiple firms trimmed price targets (Citi cut to $177; BMO to $120; Oppenheimer lowered its target), keeping ratings but signaling valuation and near‑term growth concern. Citi Slashes ServiceNow's Target to $177: Is the AI Workflow Giant Losing Its Edge?
• Negative Sentiment: Large YTD drawdown and bearish headlines — coverage noting a roughly 43% YTD decline and skeptical writeups amplify downside sentiment and valuation questions ahead of earnings. ServiceNow (NOW) Stock Plunges 43% in 2026 — Time to Buy the Selloff?

Insider Activity

In other news, insider Kevin Thomas Mcbride sold 1,400 shares of the stock in a transaction dated Friday, February 13th. The stock was sold at an average price of $105.71, for a total value of $147,994.00. Following the completion of the sale, the insider owned 26,314 shares in the company, valued at approximately $2,781,652.94. This trade represents a 5.05% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, insider Paul Fipps sold 3,696 shares of the stock in a transaction dated Monday, February 23rd. The shares were sold at an average price of $101.77, for a total value of $376,141.92. Following the completion of the sale, the insider owned 8,061 shares of the company's stock, valued at approximately $820,367.97. This trade represents a 31.44% decrease in their position. The SEC filing for this sale provides additional information. Over the last quarter, insiders sold 16,237 shares of company stock worth $1,697,162. 0.34% of the stock is currently owned by corporate insiders.

Wall Street Analysts Forecast Growth

NOW has been the subject of several recent analyst reports. Oppenheimer set a $130.00 price target on ServiceNow and gave the company an "outperform" rating in a report on Wednesday. Capital One Financial dropped their price objective on ServiceNow from $188.00 to $161.00 and set an "overweight" rating for the company in a research note on Friday, January 16th. Piper Sandler reaffirmed an "overweight" rating on shares of ServiceNow in a research note on Thursday, January 29th. Needham & Company LLC reaffirmed a "buy" rating and issued a $155.00 price objective on shares of ServiceNow in a research note on Thursday, February 5th. Finally, Jefferies Financial Group dropped their price objective on ServiceNow from $230.00 to $175.00 and set a "buy" rating for the company in a research note on Friday, January 23rd. Three 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 data from MarketBeat.com, ServiceNow presently has a consensus rating of "Moderate Buy" and a consensus target price of $179.85.

ServiceNow Trading Up 7.2%

Shares of ServiceNow stock opened at $94.11 on Thursday. ServiceNow, Inc. has a fifty-two week low of $81.24 and a fifty-two week high of $211.48. The firm has a market cap of $97.51 billion, a PE ratio of 56.42, a P/E/G ratio of 1.47 and a beta of 1.01. The business's fifty day moving average is $105.93 and its two-hundred day moving average is $141.78. The company has a quick ratio of 1.00, a current ratio of 1.00 and a debt-to-equity ratio of 0.12.

ServiceNow (NYSE:NOW - Get Free Report) last announced its quarterly earnings results on Wednesday, January 28th. The information technology services provider reported $0.92 EPS for the quarter, topping the consensus estimate of $0.89 by $0.03. The company had revenue of $3.57 billion during the quarter, compared to analyst estimates of $3.53 billion. ServiceNow had a return on equity of 18.54% and a net margin of 13.16%.The firm's revenue was up 20.7% on a year-over-year basis. During the same period in the prior year, the firm posted $0.73 earnings per share. Analysts anticipate that ServiceNow, Inc. will post 8.93 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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