Ethic Inc. Raises Holdings in ServiceNow, Inc. $NOW

Key Points

• Ethic Inc. boosted its ServiceNow stake by 402.1% in the fourth quarter, ending with 127,581 shares valued at about $19.5 million. Several other institutional investors also sharply increased holdings, and institutions now own 87.18% of the stock.
• ServiceNow shares were down 2.6% and recently traded near $91.14, well below its 50-day and 200-day moving averages. The stock also remains far off its 52-week high of $211.48.
• The company reported Q1 earnings of $0.97 per share, matching estimates, while revenue of $3.77 billion slightly topped forecasts and rose 22.1% year over year. Analysts still view the stock as a Moderate Buy with a consensus price target of $144.71.

Ethic Inc. increased its stake in shares of ServiceNow, Inc. (NYSE:NOW - Free Report) by 402.1% in the 4th quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund owned 127,581 shares of the information technology services provider's stock after purchasing an additional 102,173 shares during the period. Ethic Inc.'s holdings in ServiceNow were worth $19,544,000 as of its most recent SEC filing.

A number of other institutional investors and hedge funds have also recently bought and sold shares of NOW. Vanguard Group Inc. raised its holdings in shares of ServiceNow by 404.5% in the fourth quarter. Vanguard Group Inc. now owns 101,963,384 shares of the information technology services provider's stock worth $15,619,771,000 after acquiring an additional 81,752,460 shares during the last quarter. Jennison Associates LLC boosted its stake in shares of ServiceNow by 280.1% during the fourth quarter. Jennison Associates LLC now owns 8,432,389 shares of the information technology services provider's stock valued at $1,291,758,000 after acquiring an additional 6,213,762 shares during the last quarter. Nordea Investment Management AB boosted its stake in shares of ServiceNow by 388.7% during the fourth 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 acquiring an additional 3,743,087 shares during the last quarter. Pictet Asset Management Holding SA increased its position in ServiceNow by 613.4% during the 4th quarter. Pictet Asset Management Holding SA now owns 3,840,262 shares of the information technology services provider's stock worth $588,326,000 after purchasing an additional 3,301,962 shares in the last quarter. Finally, Swedbank AB raised its stake in ServiceNow by 326.9% in the 4th quarter. Swedbank AB now owns 3,415,650 shares of the information technology services provider's stock valued at $523,243,000 after purchasing an additional 2,615,500 shares during the last quarter. Hedge funds and other institutional investors own 87.18% of the company's stock.

ServiceNow Stock Down 2.6%

Shares of NOW opened at $91.14 on Friday. The firm has a market cap of $93.96 billion, a PE ratio of 54.31, a price-to-earnings-growth ratio of 1.66 and a beta of 0.82. The company has a quick ratio of 0.84, a current ratio of 0.84 and a debt-to-equity ratio of 0.13. The company's fifty day moving average is $102.80 and its two-hundred day moving average is $132.71. ServiceNow, Inc. has a fifty-two week low of $81.24 and a fifty-two week high of $211.48.

ServiceNow (NYSE:NOW - Get Free Report) last issued its earnings results on Wednesday, April 22nd. The information technology services provider reported $0.97 earnings per share for the quarter, hitting the consensus estimate of $0.97. ServiceNow had a return on equity of 18.16% and a net margin of 12.59%.The business had revenue of $3.77 billion for the quarter, compared to analyst estimates of $3.75 billion. During the same period last year, the company posted $0.81 EPS. The business's quarterly revenue was up 22.1% on a year-over-year basis. Analysts forecast that ServiceNow, Inc. will post 2.35 earnings per share for the current year.

Analyst Upgrades and Downgrades

NOW has been the topic of a number of recent research reports. Needham & Company LLC restated a "buy" rating and issued a $115.00 target price on shares of ServiceNow in a report on Tuesday. FBN Securities reduced their price objective on shares of ServiceNow from $160.00 to $120.00 in a research note on Thursday, April 23rd. Stifel Nicolaus lowered their target price on shares of ServiceNow from $135.00 to $120.00 and set a "buy" rating for the company in a research note on Thursday, April 23rd. UBS Group set a $150.00 price target on ServiceNow in a research note on Thursday, April 23rd. Finally, Raymond James Financial lowered their price objective on ServiceNow from $160.00 to $130.00 and set an "outperform" rating for the company in a research report on Thursday, April 23rd. Two investment analysts have rated the stock with a Strong Buy rating, thirty-three have assigned a Buy rating, six have assigned a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat, the company currently has an average rating of "Moderate Buy" and a consensus price target of $144.71.

ServiceNow News Summary

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: ServiceNow announced a partnership with Accenture to deliver agentic AI at enterprise scale, reinforcing its role as a core platform for enterprise AI workflows and potentially expanding adoption. ServiceNow, Accenture partner to deliver agentic AI at enterprise scale
• Positive Sentiment: Management is pushing a long-term growth narrative, saying AI can accelerate ServiceNow’s business and projecting more than $30 billion in subscription revenue by 2030, which helped lift sentiment around the stock. ServiceNow Targets $30 Billion As AI Revenue Story Accelerates
• Positive Sentiment: Several analyst notes were supportive, including higher price targets and reiterated Buy/Outperform ratings, signaling that Wall Street still sees upside despite the selloff. Capital One Financial Increases ServiceNow NYSE: NOW Price Target to $120.00
• Positive Sentiment: There was also unusual call-option buying, suggesting some traders are positioning for a rebound.
• Neutral Sentiment: ServiceNow continued to generate attention around its AI control and governance strategy, including collaborations with NVIDIA and Microsoft, which may support the long-term platform story but do not yet change near-term fundamentals. ServiceNow And NVIDIA Project Arc Puts AI Agents At Center Stage
• Negative Sentiment: Bearish coverage focused on rising competition from agentic AI and argued that ServiceNow’s challenges predate the AI hype, adding to concerns that the stock may have more downside if growth expectations reset. ServiceNow Had Problems Long Before Agentic AI. Here's Why.
• Negative Sentiment: Investors also appear worried about the broader “Saaspocalypse” narrative, with commentary highlighting the scale of the stock’s recent decline and questions about whether AI will truly offset pressure on legacy software models. Why CEO Bill McDermott says ServiceNow’s 39% stock crash is Saaspocalypse ‘nonsense’ and why AI will make it a trillion-dollar company

Insider Transactions at ServiceNow

In related news, Director Paul Edward Chamberlain sold 1,500 shares of the firm's stock in a transaction that occurred 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 owned 46,430 shares in the company, valued at approximately $4,697,323.10. This trade represents a 3.13% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, insider Kevin Thomas Mcbride sold 1,400 shares of ServiceNow stock in a transaction that occurred on Friday, February 13th. The shares were sold at an average price of $105.71, for a total transaction of $147,994.00. Following the transaction, the insider directly 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 SEC filing for this sale provides additional information. In the last 90 days, insiders have sold 25,164 shares of company stock valued at $2,497,021. 0.34% of the stock is owned by company 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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