Gamco Investors INC. ET AL Grows Stock Position in ServiceNow, Inc. $NOW

Key Points

• Gamco Investors boosted its ServiceNow stake by 413.1% in the fourth quarter, while several other major institutional investors also sharply increased their holdings. Overall, institutional ownership now stands at 87.18% of the company’s stock.
• ServiceNow reported Q1 earnings in line with expectations, posting $0.97 EPS on revenue of $3.77 billion, which was slightly above estimates and up 22.1% year over year. The company’s stock was trading around $103.13, near its recent lows and well below its 12-month high.
• Analyst sentiment remains broadly positive, with firms like Bank of America reaffirming a Buy rating and a $130 target, citing ServiceNow as an AI beneficiary. However, some price targets were cut, reflecting ongoing debate over valuation and AI disruption risk.

Gamco Investors INC. ET AL grew its holdings in shares of ServiceNow, Inc. (NYSE:NOW - Free Report) by 413.1% in the 4th quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The fund owned 25,121 shares of the information technology services provider's stock after purchasing an additional 20,225 shares during the quarter. Gamco Investors INC. ET AL's holdings in ServiceNow were worth $3,848,000 as of its most recent filing with the Securities & Exchange Commission.

Several other hedge funds and other institutional investors have also recently made changes to their positions in NOW. Vanguard Group Inc. increased its position in shares of ServiceNow by 404.5% during the 4th quarter. Vanguard Group Inc. now owns 101,963,384 shares of the information technology services provider's stock valued at $15,619,771,000 after purchasing an additional 81,752,460 shares during the last quarter. Jennison Associates LLC increased its position in shares of ServiceNow by 280.1% during the 4th 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 purchasing an additional 6,213,762 shares during the last quarter. Nordea Investment Management AB increased its position in shares of ServiceNow by 388.7% during 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 purchasing an additional 3,743,087 shares during the last quarter. Pictet Asset Management Holding SA increased its position in shares of 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 valued at $588,326,000 after purchasing an additional 3,301,962 shares during the last quarter. Finally, Swedbank AB lifted its position in shares of ServiceNow by 326.9% during 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 buying an additional 2,615,500 shares in the last quarter. Hedge funds and other institutional investors own 87.18% of the company's stock.

ServiceNow Stock Up 1.3%

NYSE NOW opened at $103.13 on Thursday. The stock's 50 day moving average is $99.35 and its 200 day moving average is $126.89. The company has a current ratio of 0.84, a quick ratio of 0.84 and a debt-to-equity ratio of 0.13. ServiceNow, Inc. has a 12 month low of $81.24 and a 12 month high of $211.48. The stock has a market cap of $106.33 billion, a PE ratio of 61.46, a P/E/G ratio of 1.85 and a beta of 0.82.

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. ServiceNow had a return on equity of 18.16% and a net margin of 12.59%.The company had revenue of $3.77 billion for the quarter, compared to analysts' expectations of $3.75 billion. During the same period in the previous year, the firm earned $0.81 EPS. The firm's revenue was up 22.1% compared to the same quarter last year. Research analysts predict that ServiceNow, Inc. will post 2.35 EPS for the current fiscal year.

Insiders Place Their Bets

In related news, insider Paul Fipps sold 3,696 shares of the business's stock in a transaction that occurred on Monday, February 23rd. The stock was sold at an average price of $101.77, for a total value of $376,141.92. Following the transaction, the insider directly owned 8,061 shares of the company's stock, valued at approximately $820,367.97. The trade was a 31.44% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, insider Jacqueline P. Canney sold 8,927 shares of the business's 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. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 31,767 shares of company stock valued at $2,906,098 in the last 90 days. 0.34% of the stock is currently owned by company insiders.

ServiceNow News Roundup

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: Bank of America restarted coverage on ServiceNow with a Buy rating and a $130 target, calling it an AI winner in the emerging agentic AI era. BofA Reinstates Coverage of ServiceNow, Salesforce. It Says 1 Is an AI Beneficiary.
• Positive Sentiment: Several articles said Wall Street is warming to ServiceNow because its workflow software could serve as a control layer for AI agents, easing fears that AI will replace its business. Wall Street Is Warming Up to ServiceNow Stock. That’s Because It’s Now a Bet on Agentic AI.
• Positive Sentiment: Analysts and commentators highlighted that the recent selloff may have been overdone, with ServiceNow’s valuation looking more attractive after a sharp yearlong decline. Assessing ServiceNow (NOW) Valuation After A Year Of Sharp Share Price Declines
• Positive Sentiment: Media and analyst pieces also framed the stock’s rebound as part of a broader rotation back into software names, with ServiceNow singled out as one of the sector leaders. ServiceNow and Snowflake Stocks Trade Up, What You Need To Know
• Neutral Sentiment: Some reports noted that the stock has fallen sharply over the past year despite revenue and profit growth, so investors are still weighing strong fundamentals against a still-extended valuation. After a 50% Drop, Is ServiceNow Stock Worth Buying?
• Negative Sentiment: There are still lingering concerns that AI disruption could pressure traditional enterprise software, and some commentary warned the recent bounce could fade if those fears return. ServiceNow stock flashes a death cross amid rising SaaSpocalypse concerns

Wall Street Analysts Forecast Growth

NOW has been the topic of a number of analyst reports. Wolfe Research set a $125.00 price objective on ServiceNow in a research report on Thursday, April 23rd. FBN Securities lowered their price objective on ServiceNow from $160.00 to $120.00 in a research report on Thursday, April 23rd. The Goldman Sachs Group lowered their price objective on ServiceNow from $188.00 to $163.00 and set a "buy" rating on the stock in a research report on Thursday, April 23rd. Jefferies Financial Group reaffirmed a "buy" rating and set a $135.00 price objective (down from $175.00) on shares of ServiceNow in a research report 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 on the stock in a research report on Thursday, April 23rd. Two 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 assigned a Sell rating to the company. According to MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average price target of $141.89.

ServiceNow 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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