Employees Provident Fund Board Buys Shares of 2,426,170 ServiceNow, Inc. $NOW

Key Points

• Employees Provident Fund Board initiated a large new position in ServiceNow, buying 2,426,170 shares worth about $371.7 million. The stake represents about 2.7% of its portfolio and makes ServiceNow its 9th-largest holding.
• ServiceNow continues to see positive momentum around AI, with new partnerships and ecosystem expansion involving Wipro, Digimarc, HPE, Aria Systems, and Cognizant. The company’s AI Control Tower is also being viewed as a possible future growth driver.
• The company’s latest earnings showed solid growth and in-line results, with revenue of $3.77 billion, up 22.1% year over year, and EPS of $0.97 matching analyst expectations. Despite this, shares remain well below the 52-week high, and analysts currently rate the stock a Moderate Buy.

Employees Provident Fund Board purchased a new position in shares of ServiceNow, Inc. (NYSE:NOW - Free Report) during the 4th quarter, according to its most recent disclosure with the Securities and Exchange Commission. The firm purchased 2,426,170 shares of the information technology services provider's stock, valued at approximately $371,665,000. ServiceNow comprises approximately 2.7% of Employees Provident Fund Board's investment portfolio, making the stock its 9th largest holding. Employees Provident Fund Board owned 0.23% of ServiceNow at the end of the most recent quarter.

A number of other hedge funds and other institutional investors have also modified their holdings of the company. IAG Wealth Partners LLC boosted its position in ServiceNow by 200.0% during the third quarter. IAG Wealth Partners LLC now owns 27 shares of the information technology services provider's stock worth $25,000 after acquiring an additional 18 shares during the last quarter. Wealth Watch Advisors INC purchased a new position in shares of ServiceNow during the 3rd quarter worth $29,000. Texas Capital Bancshares Inc TX acquired a new stake in shares of ServiceNow during the third quarter worth $37,000. Ameriflex Group Inc. boosted its holdings in shares of ServiceNow by 187.5% during the third quarter. Ameriflex Group Inc. now owns 46 shares of the information technology services provider's stock worth $42,000 after purchasing an additional 30 shares during the last quarter. Finally, Kelleher Financial Advisors purchased a new stake in shares of ServiceNow in the third quarter valued at $50,000. 87.18% of the stock is currently owned by hedge funds and other institutional investors.

Key Headlines Impacting ServiceNow

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: ServiceNow expanded its agentic AI ecosystem through new partnerships with Wipro, Digimarc, and HPE, reinforcing demand for its platform in enterprise automation and AIOps. ServiceNow (NOW) Expands Agentic AI With Wipro Digimarc And HPE Partnerships
• Positive Sentiment: Analyst-style coverage is constructive, with articles highlighting ServiceNow as a leading generative AI software name and citing strong buy ratings and upside potential from current levels. Why is ServiceNow (NOW) the Best Generative AI Software Stock to Buy in June
• Positive Sentiment: ServiceNow’s AI Control Tower is being viewed as a potential growth engine as enterprises look for governance and orchestration tools to manage expanding AI deployments. Can AI Control Tower Become ServiceNow's Next Growth Engine?
• Positive Sentiment: New ecosystem announcements with Aria Systems and Cognizant suggest ServiceNow is deepening integration across telecom and multi-agent enterprise workflows, which could support future platform adoption. Aria Systems and ServiceNow Replace Decades of Complexity by Launching the World’s First Agentic BSS for Telecoms Cognizant expands cross-platform agentic AI with new ServiceNow AI Agent interoperability
• Neutral Sentiment: Several AI infrastructure and industry commentary pieces underscore the broader demand for enterprise AI tools, but they are more thematic than directly tied to near-term ServiceNow financial results. Cloud AI Update - Exploring AI's Future Infrastructure Challenges And Solutions
• Negative Sentiment: The Seeking Alpha piece arguing that the “AI threat is overstated” implies there is still debate about whether AI could pressure software vendors, though the article itself is more reassuring than alarming for ServiceNow. ServiceNow: The AI Threat Is Overstated

ServiceNow Stock Performance

Shares of ServiceNow stock opened at $95.51 on Friday. The company has a debt-to-equity ratio of 0.13, a quick ratio of 0.84 and a current ratio of 0.84. ServiceNow, Inc. has a 1 year low of $81.24 and a 1 year high of $211.48. The firm's 50-day simple moving average is $99.56 and its 200-day simple moving average is $117.81. The firm has a market cap of $98.47 billion, a PE ratio of 56.92, a price-to-earnings-growth ratio of 1.58 and a beta of 0.94.

ServiceNow (NYSE:NOW - Get Free Report) last posted 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. The business had revenue of $3.77 billion during the quarter, compared to the consensus estimate of $3.75 billion. ServiceNow had a return on equity of 18.16% and a net margin of 12.59%.The company's revenue for the quarter was up 22.1% compared to the same quarter last year. During the same period last year, the firm earned $0.81 earnings per share. Equities analysts forecast that ServiceNow, Inc. will post 2.34 earnings per share for the current fiscal year.

Insider Transactions at ServiceNow

In other news, insider Jacqueline P. Canney sold 8,927 shares of ServiceNow stock in a transaction that occurred on Friday, April 24th. The stock was sold at an average price of $89.60, for a total value of $799,859.20. Following the completion of the transaction, the insider owned 29,531 shares in the company, valued at approximately $2,645,977.60. This trade represents a 23.21% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, 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 value of $130,845.00. Following the completion of the sale, the director owned 44,930 shares of the company's stock, valued at $3,919,243.90. This trade represents a 3.23% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders sold 28,071 shares of company stock worth $2,529,956. 0.34% of the stock is currently owned by corporate insiders.

Analyst Ratings Changes

Several equities analysts recently weighed in on the company. HSBC reduced their target price on ServiceNow from $226.00 to $171.00 and set a "buy" rating on the stock in a research report on Thursday, April 16th. Citizens Jmp restated a "market outperform" rating and issued a $157.00 target price on shares of ServiceNow in a report on Tuesday, May 5th. Needham & Company LLC reaffirmed a "buy" rating and set a $115.00 price target on shares of ServiceNow in a research report on Tuesday, May 5th. Benchmark increased their price target on shares of ServiceNow from $125.00 to $130.00 and gave the stock a "buy" rating in a research note on Monday, June 15th. Finally, Evercore lifted 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. One analyst has rated the stock with a Strong Buy rating, thirty-five have given a Buy rating, five have given a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, ServiceNow currently has a consensus rating of "Moderate Buy" and an average target price of $142.17.

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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