Gabelli Funds LLC Acquires 113,942 Shares of ServiceNow, Inc. $NOW

Key Points

• Gabelli Funds LLC increased its ServiceNow stake by 400.9% in the fourth quarter, buying 113,942 additional shares and bringing its total holdings to 142,365 shares worth about $21.8 million.
• Wall Street sentiment remains broadly positive: several analysts reiterated or initiated Buy ratings, and Bank of America called ServiceNow a likely beneficiary of the AI boom with a $130 price target.
• ServiceNow’s recent results were solid, with quarterly revenue of $3.77 billion and earnings of $0.97 per share, both in line with or slightly above expectations, while the company also announced an Experian partnership to strengthen its AI platform.

Gabelli Funds LLC raised its holdings in shares of ServiceNow, Inc. (NYSE:NOW - Free Report) by 400.9% in the 4th quarter, according to its most recent filing with the Securities & Exchange Commission. The institutional investor owned 142,365 shares of the information technology services provider's stock after acquiring an additional 113,942 shares during the quarter. Gabelli Funds LLC's holdings in ServiceNow were worth $21,809,000 at the end of the most recent reporting period.

Several other hedge funds also recently made changes to their positions in NOW. IAG Wealth Partners LLC grew its stake in shares of ServiceNow by 200.0% in the third quarter. IAG Wealth Partners LLC now owns 27 shares of the information technology services provider's stock valued at $25,000 after buying an additional 18 shares in the last quarter. Wealth Watch Advisors INC acquired a new stake in ServiceNow during the 3rd quarter valued at $29,000. Texas Capital Bancshares Inc TX acquired a new stake in ServiceNow during the 3rd quarter valued at $37,000. Ameriflex Group Inc. lifted 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 buying an additional 30 shares in the last quarter. Finally, Kelleher Financial Advisors acquired a new stake in shares of ServiceNow during the third quarter worth $50,000. 87.18% of the stock is owned by institutional investors.

Key Headlines Impacting ServiceNow

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: Bank of America reinstated coverage on ServiceNow with a Buy rating and a $130 price target, calling the company a likely AI beneficiary in the “agentic AI” era. BofA Reinstates Coverage of ServiceNow, Salesforce. It Says 1 Is an AI Beneficiary.
• Positive Sentiment: Analysts and media reports highlighted that ServiceNow is being viewed as one of the software names best positioned to benefit from AI, with concerns about AI disruption to its business model seen as overblown. ServiceNow Stock Has Been Battered By AI Disruption Worries. These Experts Think AI Will Actually Boost Its Business
• Positive Sentiment: ServiceNow also announced a global partnership with Experian to embed data and decisioning tools into its AI platform, supporting autonomous AI agents and strengthening its enterprise workflow offering. ServiceNow (NOW) Partners With Experian to Power Autonomous AI Agents With Trusted Data
• Neutral Sentiment: Broader commentary on the software sector suggested the group may have been over-sold, with Wall Street rotating back into application software names like ServiceNow. ServiceNow’s stock heads for best day in a year — flashing a green light for the software sector
• Negative Sentiment: Some reports still pointed to lingering “SaaSpocalypse” and AI-disruption worries, noting that ServiceNow has been under pressure in recent months despite the latest rebound. ServiceNow stock flashes a death cross amid rising SaaSpocalypse concerns

ServiceNow Stock Performance

NYSE:NOW opened at $103.52 on Tuesday. The stock has a market cap of $106.73 billion, a P/E ratio of 61.69, a price-to-earnings-growth ratio of 1.61 and a beta of 0.82. The company has a current ratio of 0.84, a quick ratio of 0.84 and a debt-to-equity ratio of 0.13. The stock's 50-day moving average is $100.18 and its 200-day moving average is $128.05. ServiceNow, Inc. has a 1-year low of $81.24 and a 1-year high of $211.48.

ServiceNow (NYSE:NOW - Get Free Report) last released its quarterly 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. The company had revenue of $3.77 billion for the quarter, compared to analysts' expectations of $3.75 billion. ServiceNow had a return on equity of 18.16% and a net margin of 12.59%.The business's quarterly revenue was up 22.1% compared to the same quarter last year. During the same period in the previous year, the business posted $0.81 earnings per share. Equities research analysts anticipate that ServiceNow, Inc. will post 2.35 earnings per share for the current year.

Analyst Upgrades and Downgrades

A number of research analysts recently commented on NOW shares. Canaccord Genuity Group decreased their price target on ServiceNow from $200.00 to $145.00 and set a "buy" rating on the stock in a research report on Thursday, April 23rd. Citigroup boosted their target price on ServiceNow from $154.00 to $158.00 and gave the stock a "buy" rating in a research note on Thursday, April 30th. Evercore boosted their target price on ServiceNow from $140.00 to $150.00 and gave the stock an "outperform" rating in a research note on Tuesday, May 5th. Bank of America initiated coverage on ServiceNow in a research note on Monday. They set a "buy" rating and a $130.00 target price for the company. Finally, Barclays reissued an "overweight" rating and set a $134.00 target price (up from $132.00) on shares of ServiceNow in a research note on Tuesday, May 5th. Two research analysts have rated the stock with a Strong Buy rating, thirty-three have issued a Buy rating, six have issued a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average price target of $141.89.

Insider Transactions at ServiceNow

In other news, Director Paul Edward Chamberlain sold 1,500 shares of the business's stock in a transaction dated Thursday, May 14th. The stock was sold at an average price of $87.23, for a total transaction of $130,845.00. Following the sale, the director directly owned 44,930 shares in the company, valued at approximately $3,919,243.90. The trade was a 3.23% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, 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 directly owned 29,531 shares in the company, valued at approximately $2,645,977.60. This represents a 23.21% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last three months, insiders have sold 41,408 shares of company stock valued at $3,927,369. 0.34% of the stock is currently 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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