Flputnam Investment Management Co. Raises Stock Position in ServiceNow, Inc. $NOW

Key Points

• Flputnam Investment Management increased its ServiceNow position by 1,748.5% in the second quarter, holding 99,856 shares valued at approximately $9.9 million. Institutional investors collectively own 87.18% of the company.
• Analysts remain broadly bullish, with 36 Buy ratings, one Strong Buy, three Holds and two Sells; MarketBeat reports a consensus “Moderate Buy” rating and a $144.24 price target.
• ServiceNow exceeded quarterly expectations, reporting $0.90 in adjusted EPS and $3.99 billion in revenue, up 24% year over year. However, its high valuation, recent rally and disclosed critical security vulnerabilities present potential risks for investors.

Flputnam Investment Management Co. increased its position in shares of ServiceNow, Inc. (NYSE:NOW - Free Report) by 1,748.5% during the second quarter, according to its most recent filing with the Securities and Exchange Commission. The firm owned 99,856 shares of the information technology services provider's stock after acquiring an additional 94,454 shares during the period. Flputnam Investment Management Co.'s holdings in ServiceNow were worth $9,914,000 as of its most recent filing with the Securities and Exchange Commission.

Other institutional investors and hedge funds have also bought and sold shares of the company. Norges Bank purchased a new position in ServiceNow in the fourth quarter worth $2,020,992,000. World Investment Advisors raised its position in ServiceNow by 411.7% during the fourth quarter. World Investment Advisors now owns 47,955 shares of the information technology services provider's stock valued at $7,346,000 after purchasing an additional 38,583 shares in the last quarter. Moors & Cabot Inc. lifted its stake in ServiceNow by 387.7% during the fourth quarter. Moors & Cabot Inc. now owns 45,630 shares of the information technology services provider's stock worth $6,990,000 after purchasing an additional 36,274 shares during the last quarter. Bank of Nova Scotia lifted its stake in ServiceNow by 53.3% during the first quarter. Bank of Nova Scotia now owns 1,018,036 shares of the information technology services provider's stock worth $106,436,000 after purchasing an additional 353,749 shares during the last quarter. Finally, Huntington National Bank boosted its holdings in shares of ServiceNow by 397.1% in the 4th quarter. Huntington National Bank now owns 544,257 shares of the information technology services provider's stock worth $83,375,000 after purchasing an additional 434,761 shares in the last quarter. 87.18% of the stock is currently owned by hedge funds and other institutional investors.

Analyst Upgrades and Downgrades

Several brokerages have recently commented on NOW. UBS Group set a $248.00 price objective on ServiceNow in a research report on Thursday, July 23rd. DA Davidson set a $170.00 target price on ServiceNow and gave the stock a "buy" rating in a research report on Monday, July 20th. BTIG Research reiterated a "buy" rating and set a $150.00 price target on shares of ServiceNow in a research report on Wednesday, July 22nd. Needham & Company LLC reiterated a "buy" rating and set a $115.00 price target on shares of ServiceNow in a research report on Thursday, July 23rd. Finally, Jefferies Financial Group restated a "buy" rating and issued a $140.00 price objective (up from $135.00) on shares of ServiceNow in a report on Thursday, July 23rd. One analyst has rated the stock with a Strong Buy rating, thirty-six have issued a Buy rating, three have issued a Hold rating and two have 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 target price of $144.24.

Key Headlines Impacting ServiceNow

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: ServiceNow’s recent rally was helped by Salesforce’s strong quarterly results and upbeat outlook, which eased concerns about a “SaaS-pocalypse.” Investors are increasingly viewing AI as an enhancement to existing enterprise workflows rather than a threat to core software platforms. Why ServiceNow Rallied Today
• Positive Sentiment: Analyst and market commentary highlights ServiceNow’s agentic-AI momentum, including more than $1 billion in AI annual contract value, broader enterprise adoption and potential new monetization opportunities. The company’s AI Control Tower and expanding customer spending are viewed as additional growth drivers. Agentic AI Adoption Boosts NOW's Growth Prospects
• Positive Sentiment: Wall Street remains broadly constructive, with ServiceNow receiving Buy or Moderate Buy consensus ratings. The stock has also approached technical buy points, while some analysts have issued targets as high as $150 or substantially higher. Is It Worth Investing in ServiceNow Based on Wall Street's Bullish Views?
• Neutral Sentiment: ServiceNow has risen about 70% from its yearly low and remains below its prior peak, creating debate over whether the move represents a new buying opportunity or a temporary rebound. Analysts’ median price target of approximately $134 is below the current trading level, limiting near-term upside based on that measure. Is It a Golden Opportunity to Buy ServiceNow Stock?
• Negative Sentiment: ServiceNow warned of three maximum-severity vulnerabilities that could allow unauthenticated attackers to execute code or access SQL systems. Although patches and mitigations may limit the financial impact, the disclosures create reputational, customer-retention and execution risks. Three CVSS 10.0 ServiceNow Flaws
• Negative Sentiment: At an elevated earnings multiple, the stock is vulnerable to profit-taking if AI growth slows. Jim Cramer recommended selling half a position and retaining the remainder, underscoring the sharp rally and the possibility that some optimism is already reflected in the shares. Jim Cramer’s ServiceNow Advice

ServiceNow Trading Up 4.6%

Shares of NOW stock opened at $144.77 on Friday. The stock has a market capitalization of $149.69 billion, a PE ratio of 90.48, a P/E/G ratio of 2.55 and a beta of 0.94. ServiceNow, Inc. has a 1-year low of $81.24 and a 1-year high of $194.73. The business has a 50-day moving average of $112.33 and a 200 day moving average of $106.60. The company has a debt-to-equity ratio of 0.43, a current ratio of 0.70 and a quick ratio of 0.70.

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

Insider Activity

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

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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